What's Wrong With The Music's Industry?
The glamorous and inspiring "American dream" life is, most of the times, a dark shade for the majority of artists. Regarding music's industry, singers and musicians are not always protected and aware of what the industry terms and clauses are silently doing.
To better understand how the music's industry works, let's pretend, for a minute, that you're an artist. You just hit the billboard, and your music is the summer jam everybody aims to. You have just signed with the record label and starting to warm up for the next tours, concerts, and fan engaging activities.
This is how you think it works:
As soon as you get signed, the record label will pay you to produce and record an album. Which means that you don't have to pay, in advance, the tools you need to break through music's industry. Rather, the record label will do it for you. Perfect! From then on, (you think), it's all about revenue and profit. So, now you have an album, your song is trendy, and you sold more than 200 thousand copies at $10 each, leaving you with $2 million for the record alone. According to your contractual terms, you have to pay to the record label for your recording and producing sessions. Even if it costs $1 million, (that you think is correctly enough), it's still profitable. Your song is still profitable.
Now, how it works:
The environment is the same. Your song is a hype; every tv show wants to have you on Nobel time, every girl screams for your name, and people are crying for your signature, waiting all day in a line, in a rainy day. So you did it. You're a rock star. Now let's talk about the bills. First, you get signed. You have found a record label that saw the potential and gave you an opportunity among and above others. The record label will pay in advance for your recording and production record $200 thousand, allegedly. Now the fun part. From that amount of money, let's imagine that your album sells something like 500.000 copies at $10 each. Automatically, $5 million was just from your record sells. From that amount you now have to take off, usually, from 60 to 85% to the record label, which means that the artist, in this case, you, will stick with approximately with $750.000. Wait for it... you have to add some costs like Recording costs, promotion costs, video costs, advance costs, tour support, and naturally, damages costs (for the shipping), packaging costs... and other costs to decrease your initial profitable amount of money. After all the applied expenses, you are now almost bankrupt until the next album production that will increase, multiply, and double your debt.
Music's Industry business model, as we know it, it's not reliable, secure or even manageable for most artists. There are bands, singers, music professionals that, to get paid, had to sue their record label.
That's why Myrillion is developing a new approach to the music's industry.
The contracts signed between the artist and, in this case, the record label, thanks to smart-contracts and blockchain technology, are not able to be edited, changed or erased. And no chance for those professionals who don't pay what is supposed to. All the contractual terms, transactional moves, and the parties involved are contemplated in smart-contracts, as well as the payments of the parties within.
Learn more about Myrillion's approach at www.myrillion.io