Leading up to SXSW, we are reaching out to various music platforms building on Bitcoin SV (BSV) to learn more about how they empower artists, create unique revenue streams, and strengthen relationships with fans. In this series, we interview Soundoshi, the easiest way to make money from music.
How does your platform uniquely monetize audio content?
Soundoshi: Soundoshi monetizes audio content through a variety of innovative features. Firstly, we use NFTs (non-fungible tokens) as the next generation of compact discs, allowing artists to tokenize their music and offer unique collectibles to fans. Additionally, we offer NFTs representing master record rights, which can be fractionalized and sold to investors seeking future revenue streams.
Furthermore, we have our own wallet infrastructure tailored to the needs of music platforms, allowing for monetized comments, likes, follows, and other interactions. And finally, our platform enables instant micropayments per stream, creating an alternative revenue stream for artists and complementing our NFT offerings. Overall, our approach provides a range of options for artists to monetize their content in a way that is flexible, efficient, and cost-effective.
What are the flaws in Spotify’s (for example) business model?
Soundoshi: Spotify‘s business model has been criticized for various reasons, including its lack of transparency in royalty payouts and algorithmic music recommendations. Additionally, the platform’s cross-subsidization model tends to favor established artists over emerging and independent ones. This model has also been shown to be prone to fraudulent plays from bots and other unfair practices, which can further disadvantage smaller artists.
Furthermore, Spotify’s reliance on advertising revenue and subscription models means that the platform does not provide a direct way for fans to support artists beyond simply streaming their music. All of these factors have led some to argue that Spotify’s business model is in need of reform.
How does your platform connect fans and artists more directly?
Soundoshi: Soundoshi platform provides a direct and transparent communication channel between artists and fans. It allows artists to directly engage with their fans by enabling monetized comments, likes, follows, and other interactions. Fans can directly support their favorite artists by paying per stream, buying NFTs representing master record rights, and even fractionalizing the rights to earn future revenues from the song.
This way, Soundoshi incentivizes artists to engage more with their fans and create a loyal community around their music.
Do you view the pay-per-stream model as having too much friction for listening to songs vs. ads or subscription models?
Soundoshi: Not at all.
In fact, we believe that pay-per-stream model is a more fair and transparent way to monetize audio content compared to ads or subscription models. With our micropayments system, users can pay for only what they listen to, instead of paying for a subscription that may not always fit their listening habits.
This model allows artists to be compensated more fairly for their work, and fans can support the artists they love without having to pay for content they don’t listen to. Additionally, our micropayments system is designed to be seamless and efficient, so there is no friction for the user when it comes to paying for the content they consume.
Do you view blockchain technology as disrupting the current music industry?
Soundoshi: Yes, we do view blockchain technology as disrupting the current music industry. With blockchain, we can remove the middlemen and provide a direct connection between artists and fans. It enables us to create a decentralized music ecosystem where artists can release their music and sell it directly to fans, bypassing traditional gatekeepers such as record labels, streaming services, and other intermediaries.
Additionally, blockchain can enable more transparent and fair payment systems, allowing artists to earn more from their work while reducing the risk of piracy and copyright infringement. Overall, blockchain technology has the potential to transform the music industry, making it more accessible, transparent, and fair for everyone involved.
What role do you see NFTs having for artists in engaging their fan base?
Soundoshi: NFTs have the potential to revolutionize the way artists engage with their fans by creating a direct connection between the two. With NFTs, artists can create unique, collectible digital items that represent ownership of a specific piece of art or even a portion of future revenue streams. This allows fans to have a tangible and personalized connection to their favorite artists and their work while also providing a new revenue stream for the artists themselves.
NFTs also allow for the creation of exclusive content, such as limited-edition releases or behind-the-scenes access, which can be offered exclusively to those who hold a particular NFT. Overall, NFTs have the potential to transform the way artists monetize and interact with their fans, creating a more direct and mutually beneficial relationship.
Why did you choose to implement BSV for your platform?
Soundoshi: Soundoshi chose to implement Bitcoin SV for its platform due to several factors. First, BSV has low transaction fees, making it cost-effective for artists to release and distribute their music without being burdened by high fees. Additionally, BSV’s use of Proof-of-Work ensures security and immutability, which is important for a platform that deals with sensitive information such as music rights and royalties.
Furthermore, BSV uses the Bitcoin protocol, which is a widely recognized and trusted technology that has been in use for over a decade. This provides a level of familiarity and reliability for users.
In terms of technical features, BSV uses Bitcoin Script and the UTXO model, which allow for more advanced and flexible smart contract capabilities. This enables Soundoshi to implement unique features such as NFTs and master record fractions, as well as micropayments per stream. Overall, BSV provides a strong foundation for Soundoshi’s platform to operate on, while also offering the technical capabilities to implement innovative blockchain features.
Have you, or do you plan to implement any aspects of other blockchains (for example, Ethereum, Solana) into your platform as well?
Soundoshi: We are constantly monitoring the situation and exploring the possibilities of integrating other blockchains into our platform. With the help of WalletConnect and MetaMask, we can sign Bitcoin SV transactions from other chains, allowing users to log in, pay, or top-up with other networks. However, we have chosen Bitcoin SV as our transport layer due to its low transaction fees, Proof-of-Work consensus mechanism, Bitcoin protocol, Bitcoin script, and UTXO model. While we are open to exploring other options, Bitcoin SV’s unique features have been instrumental in our business model, which heavily relies on minuscule transaction costs to sell NFTs for cents and facilitate sub-cent micropayments per stream. Therefore, BSV will likely remain our primary blockchain for the time being.
Could you elaborate on the concept of the Smart Contract Disk?
Soundoshi: Smart Contract Disk is a unique way for artists to monetize their music by leveraging blockchain technology. Essentially, it’s a digital alternative of a physical album or single that contains a smart contract governing the distribution of the album’s revenue.
The Smart Contract Disk can be fractionalized, meaning fans can purchase a portion of the album’s revenue stream and become a shareholder in the album’s success. This is done through a specialized NFT called “MasterPiece.”
The MasterPiece NFT represents a share of the album’s revenue stream and can be traded on a secondary market, providing fans with a new way to invest in music and providing artists with a new way to fund their creative projects.
By utilizing blockchain technology, the Smart Contract Disk ensures transparency and accuracy in royalty payments and allows for direct fan-artist interaction and compensation. Overall, it’s an innovative solution for both artists and fans to engage with and support music in a more meaningful and direct way.
When will Soundoshi publicly launch?
Thank you, Soundoshi, for answering my questions. I hope the readers learned more about the platform and how they uniquely approach monetization in the music industry.
Watch: Soundoshi offers new revenue stream for the music industry
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