[TL;DR]
- The current music industry has a highly unfair revenue distribution structure where artists only receive 10–30% of total profits, while numerous intermediaries cut off direct connections between creators and fans.
- Blockchain enables artist-to-fan direct connections without intermediaries by allowing direct monetization through smart contracts, fan-participatory investment models, full copyright protection, and global real-time distribution.
- WaaS (Wallet-as-a-Service) removes complex technical entry barriers, enabling users to easily trade music NFTs using simple payments and email-based accounts, accelerating the mass adoption of the blockchain music ecosystem.
1. Structural Issues of the Traditional Music Industry
1.1. Unfair Revenue Distribution Structure
The most serious issue in today’s music industry is the severely imbalanced revenue distribution structure. Throughout the process of producing and delivering a piece of music to consumers, the actual creator—i.e., the artist—receives only 10–30% of the total revenue. The remaining 70–90% is split among record labels, distributors, and streaming platforms.
This structural inequality has worsened in the streaming era. For example, the world’s most-used streaming platforms pay artists only $0.003–$0.005 per stream. This means an artist needs millions of plays just to meet the monthly minimum cost of living. In reality, most mid-sized indie artists find it nearly impossible to sustain themselves through streaming revenue alone.
The problem is that these low earnings aren’t simply a result of market dynamics. Artists often cannot even tell how much in fees they’re actually paying, due to complex and opaque contract structures. Costs deducted under the guise of production expenses, marketing fees, and distribution commissions further reduce their actual income. Newcomers, in particular, are often forced to accept disadvantageous contract terms, making this structural exploitation even more severe.
Even more troubling is that this revenue model undermines the creative motivation of artists. Faced with rewards that hardly reflect the time and effort put into their work, many artists are forced to give up creative pursuits or take on other jobs to make ends meet. This leads to a vicious cycle that ultimately damages the creativity and diversity of the entire music ecosystem.
1.2. Excessive Intermediary Intervention and Control
Numerous intermediaries stand between artists and fans in the music industry—record labels, agencies, distributors, streaming services, and music platforms. Each entity has its own profit model, and these profits all derive from the artist’s creative output. The issue is that they are not merely service providers; they exert tremendous control over both the artist’s creative process and income structure.
Record labels often directly control the creative direction of artists through contracts. What genre of music to make, how to conceptualize an album, and even lyrical content are frequently determined based on commercial interests. Marketability and profitability take priority over the artist’s own artistic vision, resulting in the mass production of homogenized music.
Problems also arise in the distribution phase. Digital music distributors charge high fees of up to 30–50%, yet provide artists with limited information. Artists rarely gain access to key marketing data like actual sales figures, buyer demographics, or regional popularity. As a result, artists struggle to understand their audience and must rely on external decisions.
Worse yet, this reliance on intermediaries stunts the long-term growth of artists. By fully depending on labels and agencies for marketing and promotion, artists lose opportunities to build their own brands or directly manage their fanbase. Once contracts end or relationships with agencies deteriorate, artists risk losing everything and having to start over from scratch.
1.3. Disconnection Between Artists and Fans
In the current industry structure, the relationship between artists and fans is highly indirect and one-sided. Fans consume music via streaming platforms or music sites, but rarely have direct interaction with artists. Even communication through social media tends to be limited to one-way broadcasting.
This disconnect makes it difficult for fans to directly support artists. Even if fans want to offer financial support to their favorite creators, there are few options beyond subscribing to streaming services or buying albums. And even then, as mentioned, only a tiny fraction of those payments actually reach the artist.
For emerging or indie artists, this limitation is even more critical. Even if a small group of loyal fans wishes to contribute more support, the system doesn’t allow it. While some artists turn to crowdfunding, such efforts are typically limited to specific projects and don’t allow for sustained, stable backing.
Moreover, the current structure makes it difficult to form authentic fan communities. Fans consume music on different platforms and follow artists on different social networks. Even fans of the same artist are fragmented, with few ways to connect. This hinders the formation of collective fan power or healthy cultural communities centered around artists.
Ultimately, the one-sided consumption structure reduces fans to mere buyers. Apart from purchasing completed works, fans have little chance to engage in the artist’s creative process. They don’t know what the artist is working on, what challenges they face, or how they can help—and they lack any means to get involved. This leaves both artists and fans unfulfilled.
1.4. High Barriers to Entry for New Artists
For new artists, the road to success in the music industry is filled with obstacles. The biggest hurdle is the enormous initial cost. High-quality music production requires studio rental, engineer fees, and costs for mixing and mastering. Add in music video production, album cover design, and marketing expenses, and it can take tens of millions of won just to release a single album.
The issue is that individuals rarely have the means to cover these costs. Most aspiring artists cannot make a living solely through creative work and must take on other jobs. Investing huge sums in music production is an enormous gamble, and even that doesn't guarantee success.
Even with good music, distribution and promotion pose another massive challenge. Major streaming platforms often only accept content through label or distributor contracts. While independent upload services do exist, they provide no marketing or promotional support.
A lack of marketing budget is especially damaging. No matter how good the music is, it’s meaningless if no one hears it. Promotions—such as radio appearances, music shows, and online ads—all cost money. Compared to major label artists who enjoy multi-million-won marketing budgets, independent musicians can do little to promote their work.
These structural limitations deprive countless talented artists of opportunities. Instead of musical skill or creativity, early capital, connections, and luck become the key to success. Truly creative and innovative music often never reaches the public, while commercially “safe” music dominates the market.
What’s even more unfortunate is that these entry barriers are only growing. As the market becomes more digital and global, competition intensifies, yet resources available to individual artists continue to shrink. Consequently, the industry is increasingly monopolized by a few major artists and big labels, and the diversity of the music ecosystem continues to decline.
2. Innovation in the Music Industry Through Blockchain
2.1. Direct Monetization: Artist-to-Fan Connections Without Intermediaries
Blockchain is the key driver enabling fundamental change in the music industry. The most groundbreaking transformation is the elimination of intermediaries between artists and fans, allowing direct transactions. Through smart contract technology, artists can directly sell their music to fans and receive payments in real-time.
The biggest advantage of smart contracts is the automated royalty distribution system. What once required complex contracts and multilayered settlement processes is now executed automatically by code. For example, a song can be set to instantly distribute 40% to the composer, 30% to the lyricist, and 30% to the performer each time it's played—completely revolutionizing a system that used to take months for payout.
Music NFTs represent a further evolution of direct transactions. Artists can mint their music as digital assets and sell them directly to fans. They can set their own pricing and retain nearly the full proceeds—compared to the 70–90% once taken by intermediaries, this is revolutionary.
Even more exciting is that artists continue to earn revenue from secondary sales. Whenever a fan resells an NFT, a predetermined royalty is automatically sent to the original artist. This creates a new revenue stream previously impossible. For popular tracks, the NFT's value can appreciate over time, and artists can continually benefit from that appreciation.
Blockchain-based streaming platforms are also emerging. These platforms offer artists significantly higher revenue shares than traditional streaming services. Royalties that were once $0.003 per stream can be 10 times higher on blockchain platforms. In addition, artists receive payments in real time rather than waiting until the end of the month or quarter.
This direct monetization model gives artists full pricing authority. They can price their music according to market conditions and perceived value, or offer premium editions or limited releases. Fans, in turn, can support their favorite artists by paying more, expressing their support in a direct and meaningful way.
2.2. Fan-Participatory Investment Models
Another innovation made possible by blockchain is a new model where fans can directly invest in artists and share in their success. This goes beyond consumption and creates a financial partnership between artists and fans. Fans can purchase stakes in an artist’s future earnings and earn returns if the artist becomes successful.
This investment model can take various forms. The most basic is for fans to buy tokens issued by the artist. These tokens represent rights to future revenue and increase in value as the artist gains popularity. Fans become actively involved in the artist’s growth, beyond mere listening.
Crowdfunding-style music production is also possible. When preparing an album, an artist can raise funds from fans and later share the profits in proportion to the investments once the album succeeds. Unlike traditional crowdfunding, this is a true investment. Fans receive returns for successful support, and artists secure funding without relying on labels.
More advanced models allow fans to invest in an artist’s entire career. Fans support long-term potential in new artists and receive a share of revenue from all future activities. Similar to venture capital investments in startups, this model provides artists with stability and fans with long-term opportunities.
This investment approach transforms the nature of fan communities. Fans are no longer passive consumers but stakeholders in the artist’s success. They’re naturally motivated to promote and recommend the artist, generating authentic viral marketing effects.
Investor-fans may also receive decision-making rights on key matters like album concepts, concert locations, or collaborations. This deepens the relationship between artists and fans in meaningful ways.
2.3. Complete Ownership and Copyright Protection
The immutability and transparency of blockchain offer a revolutionary solution for protecting music copyrights. Once copyright information is recorded on a blockchain, it cannot be altered or tampered with. This grants artists complete and permanent ownership of their creations.
Traditional copyright registration and management systems are complex and expensive. Global protection was difficult due to country-specific legal systems. With blockchain registration, however, artists obtain universally verifiable proof of ownership. Details such as the exact creation date, creator identity, and the work’s uniqueness are all permanently preserved.
Blockchain also drastically improves the fight against piracy and copyright infringement. Music files can be assigned unique digital fingerprints, clearly distinguishing originals from copies. If pirated content circulates, it can be instantly detected and traced to its source.
Artists also gain full control over the distribution of their music. They can decide on which platforms, under what conditions, and at what prices their music is distributed. These conditions are enforced via smart contracts, removing the risk of unauthorized changes or third-party intervention.
Licensing processes become transparent and efficient. When another artist wants to sample or remix a song, they can request a license and pay the original creator directly through blockchain. All of this is automated via smart contracts.
Revenue from derivative works is also fairly distributed. For example, if a remix of a song becomes popular, both the original and remix artists receive income in predetermined ratios. This encourages collaboration and contributes to a healthy creative ecosystem.
Artists can also manage their rights in fine detail. They can configure and control different rights—streaming, downloads, performances, synchronization—separately, creating diverse revenue sources and full control over how their music is used.
2.4. Global Real-Time Distribution and Payments
Blockchain fundamentally transforms global distribution and payments in the music industry. Traditionally, artists had to sign contracts with local distributors and handle various payment systems and currency exchanges. Blockchain enables borderless music transactions via a unified global network.
Crypto payments significantly reduce fees and transaction times. A Korean artist selling music to a fan in the U.S. no longer needs to worry about complex remittance processes or high foreign exchange fees. Payments are completed in minutes with far lower costs—a huge benefit in a low-margin industry.
Equal access without regional discrimination is another key benefit. Existing platforms often apply region-specific availability and pricing, resulting in unfairness. On blockchain-based platforms, users worldwide access music under the same conditions. A fan in Africa can purchase the same song at the same price as one in North America.
24/7 real-time transactions are possible. Unlike traditional systems that depend on banking hours or monthly settlement cycles, blockchain works year-round. Music released at midnight can be instantly distributed globally, and revenue is delivered to artists in real-time.
This global accessibility is especially valuable for artists in emerging markets. In the past, artists from Asia, Africa, or Latin America had difficulty entering the global market due to the Western-centric structure. Blockchain platforms create equal opportunities for all artists to reach a global audience.
Language barriers are also technically overcome. Smart contracts support multilingual settings, and AI-powered translations allow fans worldwide to access music information in their own languages. Korean pop can trend in South America, and African rhythms can find fans in Europe.
Micro-payment systems also create new consumption patterns. Instead of buying entire albums, fans can purchase specific sections or instrument parts for small amounts. They can also subscribe to their favorite artists with micro-donations. These flexible options boost fan engagement and provide artists with steady income streams.
3. Case Studies of Innovation in the Music Ecosystem
3.1. The Growth of the Music NFT Market
The music NFT market is already showing impressive results in reality. Globally renowned rock bands have issued albums as NFTs, generating millions of dollars in revenue. This proves that NFTs have moved beyond experimentation and are becoming a new revenue model for the music industry.
A notable feature of music NFTs is that they offer far more than just digital files. Many include additional value such as limited edition cover art, unreleased tracks, handwritten lyrics, or even opportunities for personal interactions with the artist. This gives fans unique experiences that go far beyond simple music consumption.
New content formats that combine digital art and music are also gaining popularity. Multimedia works that merge visual and auditory elements are expanding the boundaries of art, creating value that traditional music or art markets have never offered.
The size of the music NFT market is growing rapidly. What started with transactions in the tens of thousands of dollars has now evolved into a market where multi-million dollar trades are common. This highlights the strong desire among fans for exclusive ownership and their willingness to directly support artists.
Equally exciting is the rise of the secondary market for music NFTs. NFTs often increase in value when resold, and each resale generates automatic royalties for the original artist. This gives artists ongoing income and offers fans a chance to earn returns on their support.
Music NFTs are also creating new forms of social status among fans. Owning a rare music NFT earns special recognition within the artist’s fan community. This introduces a new layer of digital fandom culture that goes far beyond traditional merchandise collecting.
3.2. The Emergence of Fan-Investment Music Platforms
New platforms are emerging that allow fans to directly invest in artists and share in their revenue. These platforms are redefining traditional concepts of music consumption. Fans are no longer passive listeners—they become stakeholders and partners in an artist’s success.
The artist equity investment system lies at the heart of this change. Fans buy shares in an artist’s future revenue, and if the artist succeeds, profits are distributed according to the fan’s stake. This is essentially the music industry’s version of venture capital investing and creates a brand new form of artist-fan relationship.
Limited-edition music NFT marketplaces also play a key role. Unique music pieces—custom tracks, live recordings, unreleased demos—are auctioned off and can sometimes sell for hundreds of thousands of dollars. This introduces new criteria for valuing music.
Some platforms integrate music with community engagement. Music streaming, NFT trading, fan activities, and artist investment all take place in a single ecosystem. Fans listen to music, interact with other fans, manage their portfolios, and discover new artists—all in one place.
One particularly fascinating aspect is the powerful marketing effect that naturally arises from fan investors. Because they benefit financially from the artist’s success, they are highly motivated to recommend and promote their favorite musicians. This becomes an incredibly authentic and effective form of viral marketing.
These platforms also offer data transparency. Unlike traditional music industries, where actual play counts and revenues are opaque, blockchain-based platforms disclose all transactions and activities. Fan-investors can monitor their artist’s performance in real time and make smarter investment decisions.
3.3. Decentralized Streaming Services
Blockchain-based decentralized streaming services are emerging as strong alternatives to traditional platforms. Their main appeal is the significantly higher revenue share they offer to artists. While artists previously earned just 10–30%, decentralized platforms can allow them to keep over 90% of the earnings.
This is made possible by removing intermediaries. Traditional streaming services distribute income among platform operators, record labels, and distributors. Blockchain platforms, by contrast, automate or eliminate most of these middle layers, enabling creators to retain more of the value.
Free streaming models are also evolving. Whereas existing platforms rely on ads and subscriptions, blockchain platforms use token economies to create new income structures. Users can earn tokens while listening, which they can then use to unlock premium features or tip artists.
Token-based governance brings innovation to platform management as well. Instead of a single company making all the decisions, decentralized platforms allow token holders to vote on important matters such as improving recommendation algorithms, introducing new features, or adjusting revenue models.
Fan activities such as curation and recommendations are rewarded with tokens. Whether it’s creating playlists or discovering great music, fans can earn rewards, which incentivizes participation and enhances content quality through a positive feedback loop.
Real-time revenue distribution is another core feature. While traditional platforms pay out only once every few months, blockchain platforms can instantly send earnings to artists every time their music is played. This provides immediate feedback and cash flow, encouraging more creative activity.
Global accessibility is another major benefit. Traditional services are often limited by region-specific licensing, but decentralized platforms offer the same service worldwide. This is particularly valuable for artists in emerging markets looking to reach international audiences.
3.4. Real-Time Support and Live Monetization
The fusion of live streaming and blockchain technology opens up completely new monetization opportunities for artists. Fans can now send support tokens instantly during live broadcasts, revolutionizing artist-fan interaction. Where fans once had to use external sites after a stream, they can now support artists in real time while watching.
This real-time support system offers instant feedback to artists. They can immediately see which songs are popular or which performances resonate most with fans. By gauging the amount of support, they can even adjust their performance on the spot.
NFTs for concert tickets are another innovation. Unlike paper or regular digital tickets, NFT tickets are unique digital assets. Tickets from special or historic concerts can increase in value over time and be resold or collected. Importantly, artists receive royalties from these secondary transactions.
NFT tickets also eliminate counterfeiting and scalping. Since all transactions are recorded on the blockchain and NFTs are immutable, fans can instantly verify the legitimacy of a ticket. This protects both fans and artist revenue.
Selling personalized experiences like fan meetings or custom messages is a growing trend. Artists can package their time and attention as NFTs. For example, limited editions of 30-minute video calls, voice messages, or handwritten letters. These offer fans special experiences and give artists new income sources.
Real-time sharing of the creative process is also gaining attention. Artists stream activities like composing, recording, or filming music videos, while receiving live support from fans. This gives fans a sense of participation, while enabling artists to monetize their creative process from the beginning.
Going further, fans can now influence the creative process. Depending on their support amount, they can suggest genres for upcoming songs or contribute ideas for music video concepts. This breaks down the barriers between artist and fan and enables co-creation.
These real-time support and live monetization models open new opportunities in the global era, offering artists powerful new tools for income. Without the constraints of physical venues, they can reach worldwide fans simultaneously, often earning more with lower costs than traditional concerts.
4. The Core Infrastructure of Music Innovation: WaaS
4.1. Remaining Technical Barriers
Despite the clear potential for blockchain to revolutionize the music industry, ordinary users still face significant technical hurdles to enjoying its benefits. The most basic challenge is managing cryptocurrency wallets. For most music fans, concepts like private keys, seed phrases, and wallet addresses are still unfamiliar and complicated. The risk of permanently losing all assets if one misplaces their wallet or private key is an added psychological burden.
The issue of gas fees in NFT purchases and transactions is also significant. On Ethereum, buying an NFT involves not just the purchase price but also fluctuating network fees. Sometimes these gas fees exceed the price of the NFT itself. This volatility and extra cost cause confusion and stress for everyday consumers.
The diversity of blockchain networks and tokens is another barrier. Ethereum, Polygon, Solana, Binance Smart Chain—all use different tokens and wallets. Users must figure out which platform uses which token, and may need to perform token swaps or bridge assets. This process is extremely complicated for users accustomed to standard online shopping.
Different wallet applications like MetaMask have varied interfaces and functions. Not only is it hard to choose the right wallet, but after choosing one, users face complex setup and security procedures. Cross-device syncing, multisig settings, and hardware wallet integration can be nearly impossible for the non-technical.
Additionally, the irreversible nature of blockchain transactions is burdensome for general users. On traditional platforms, mistaken purchases can be refunded via customer support. On blockchain, transactions are final and irreversible. This adds significant mental stress, as users must double-check every detail before proceeding.
4.2. WaaS Accelerates Music Innovation
Wallet-as-a-Service (WaaS) addresses these technical barriers at their core, making blockchain’s benefits easily accessible to everyone. One of its most innovative changes is the ability to purchase music NFTs with credit cards. Users can now buy music NFTs in the same way they shop online—without signing up for crypto exchanges or setting up wallets.
In this system, when a user pays with a credit card, the backend automatically converts fiat into crypto, executes the smart contract, and delivers the NFT to the user’s account. The entire process completes in seconds. Users remain unaware of the complex blockchain tech running behind the scenes.
Another major innovation is replacing wallet management with an email-based system. On WaaS platforms, users create accounts with just an email and password, and manage all digital assets from there. There’s no need to manage private keys or seed phrases, and forgotten passwords can be recovered just like traditional services. This makes digital ownership safe even for users without any technical knowledge.
User interfaces have also been radically simplified. While traditional blockchain apps are filled with confusing technical terms and unfamiliar layouts, WaaS-based music platforms offer interfaces similar to Spotify or Apple Music. Both artists and fans can use the service immediately without any learning curve. Blockchain complexity is completely abstracted away.
Gas fees are handled through WaaS as well. Platforms pay gas fees on behalf of users, or use L2 scaling and meta-transactions so that users don’t need to worry about them. The only thing users see is the displayed price—there are no surprise fees or fluctuating costs.
Cross-chain compatibility is handled automatically. No matter which blockchain the NFT is on, users manage everything under one account. Token swaps and cross-chain transfers are managed in the background, completely hidden from the user. There’s no need to understand the underlying tech.
4.3. An All-in-One Solution for Artists
WaaS also offers game-changing convenience for artists. The entire process—from uploading music to minting NFTs—can be handled with a single click. Even artists without technical knowledge can easily join the blockchain ecosystem. They simply upload their audio files and metadata, and the platform automatically generates smart contracts, mints NFTs, and lists them on marketplaces.
During this process, artists can set royalty rates, edition sizes, pricing, and special perks through simple configuration options. No coding or blockchain expertise is required—everything can be done through an intuitive GUI. Real-time previews are also available so artists can see how their NFT will appear to fans.
Automated backend systems reduce artists' administrative burdens by handling revenue distribution and tax reports. All transactions are recorded and organized, with tax documents generated automatically. Even complex international tax matters are managed by the platform, so artists can focus purely on creating.
WaaS also enables automatic revenue sharing among collaborators. If a track involves composers, lyricists, arrangers, and session players, income is instantly split according to preset ratios. This completely transforms a settlement process that previously took months.
Integrated fan club and community management tools are another key feature. Artists can manage communities and communicate with fans directly within the WaaS platform, without relying on external fan sites or social media tools. Detailed analytics on fan engagement, purchase history, and preferences are also available for personalized fan service.
Special events such as airdrops, limited releases, and fan meetups can also be easily planned and executed. Using built-in templates and automation tools, artists can run complex campaigns effortlessly. Participant tracking and rewards are handled automatically.
5. The Future of the Music Industry: A World Where Artists Take the Lead
The music industry now stands at a major turning point. The emergence of blockchain and WaaS (Wallet-as-a-Service) is not just a technical revolution—it is a complete paradigm shift for the entire music ecosystem. In the future ahead, the creators—artists—will truly become the rightful owners of their work.
The most significant change is the complete elimination of dependence on record labels. Artists no longer have to accept unfair contract terms or sacrifice creative freedom. From production to distribution, marketing, and monetization, they can take control of the entire process. For the first time in the history of the music industry, creators are gaining full autonomy.
The relationship between fans and artists is also being fundamentally redefined. The one-sided consumption model is being replaced by a collaborative partnership, where fans actively support the growth of their favorite artists, invest in them, and participate in their creative journey. This goes beyond traditional fan culture and gives rise to a new kind of musical community.
In a future where technical barriers are completely removed, anyone will be able to enjoy these benefits with ease. Through the simple interface provided by WaaS, a grandmother could gift her grandson a debut artist’s NFT, and a teenager could invest their allowance in an emerging star. The complexity of blockchain will remain hidden in the background—what’s left is pure musical value and authentic human connection.
The global music ecosystem will become fully democratized. Regardless of geography, language, or capital, great music will be fairly recognized and rewarded worldwide. An unknown artist from Africa could become a global star overnight. A Korean indie musician might explode in popularity across South America. These scenarios will become natural and commonplace.
A new music consumption culture will emerge. Listening will be just one part of a broader experience that includes collecting, investing, and sharing. Music will become both a form of emotional expression and a valuable digital asset. Fans will build their own music portfolios and form new types of cultural identity.
This transformation will dramatically increase the diversity and creativity of music. Free from commercial pressures, artists will be able to create based purely on artistic inspiration. Experimental and innovative music that we’ve never heard before will flood the world. Genre boundaries will dissolve, and different global cultures will merge freely, potentially giving rise to entirely new musical languages.
In the end, the future we’re headed toward is not a world where technology controls people, but a world where technology maximizes human creativity and connection. All the complex intermediary processes will fade into the background, leaving only the genuine artistic value and authenticity of music. Artists will focus solely on their creations, while fans will engage with music in deeper and more meaningful ways.
This is the future that blockchain can bring to music—a world where complexity is hidden, and music and people meet in the most natural and beautiful way. In this world, every talented artist will be given a fair opportunity, every fan will enjoy authentic musical experiences, and music—humanity’s universal language—will flourish more richly and vibrantly than ever before.
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