The Times Australia
The Times World News

.
The Times Real Estate

.

TikTok is partnering with a blockchain start-up. Here's why this could be good news for artists

  • Written by D. Bondy Valdovinos Kaye, Assistant researcher, Queensland University of Technology
TikTok is partnering with a blockchain start-up. Here's why this could be good news for artists

On August 17, TikTok announced[1] it will partner with Audius, a streaming music platform, to manage its expansive internal audio library.

Audius was not the obvious choice for partnering with the short video giant. A digital music streaming start-up founded in 2018, it isn’t one of the major streaming services such as Apple Music or Spotify.

And, even more unusual, Audius is one of the first and only streaming platforms run on blockchain.

Remind me, what is blockchain?

Blockchain is a technology that stores data records and transfers values with no centralised ownership.

Transaction data on these systems are stored as individual “blocks” that sequentially link together when connected by timestamps and unique identifiers to form “chains”.

For music, this means individual songs are assigned unique codes, and clear records are stored each time a song is played. It can also mean more streamlined and transparent payments.

Read more: Demystifying the blockchain: a basic user guide[2]

Platforms like Spotify and Apple Music use a “pro-rata” model to pay artists. Under this system, artists get a cut of the platform’s overall monthly revenues generated from ads and subscription fees, as calculated by how many times their music was played.

The pro-rata model has been criticised by independent artists and analysts[3] for maintaining a “superstar economy” in which the most popular artists claim a majority share of monthly revenue.

Facilitated by its blockchain system, Audius uses a “user-centric” model, where artists receive revenues generated by the individual users who stream their music directly.

That is, payments are generated for artists more directly from people streaming their songs.

While the biggest streaming players have refused to abandon pro-rata payments, Deezer — a French music streaming service with around 16 million monthly active users — has taken the first steps towards user-centric[4] payments.

Now, it seems TikTok may be poised to follow.

And how does TikTok work?

At over 800 million monthly active users, TikTok is the world’s largest short video platform and has become a significant force in global music industries.

Once on TikTok, songs can be used as background for short videos — and can go viral.

Currently, putting independent music on TikTok requires the help of a publisher or companies like CD Baby or TuneCore that charge a fee or take a cut of revenues.

Read more: The secret of TikTok's success? Humans are wired to love imitating dance moves[5]

Audius will enable independent artists to upload music directly to TikTok. This would be a boon for musical artists given the centrality of music on TikTok and the platform’s propensity for failing to properly credit artists for their work[6].

Recent research[7] into blockchain systems in book publishing suggests the technology can lead to improved tracking of intellectual property and increased royalty payments to independent authors. The same may be true for independent musicians on TikTok, but a history of overstated claims and unfulfilled promises warrants measured expectations.

Is this a fairer payment system?

So far, TikTok has made no indication the company will use Audius’ blockchain technology to implement a user-centric revenue model, but the incorporation of royalty payments per video plays is a reasonable expectation.

When artists are paid from a platform like Spotify, they are paid in money. But Audius conducts blockchain transactions using its in-house cryptocurrency called $AUDIO.

Cryptocurrencies are virtual currencies stored on public ledgers rather than in banks and used to make transactions facilitated by blockchain systems.

Audius’ co-founder claims[8] most users are unaware or uninterested in the cryptocurrency underpinning the platform — but the price of $AUDIO spiked on coin markets[9] immediately following the announcement.

Because cryptocurrencies operate on a volatile market, if artists were to collect payments in $AUDIO it might be impossible to predict whether their income would amount to fair compensation.

Artists’ income won’t only be tied to how often their music is listened to, but also to market speculation.

So, what does this mean for artists?

Some independent artists may be wary to handle payments through a decentralised digital currency subject to fewer regulations and unpredictable value fluctuations — not to mention the environmental costs[10] associated with mining and maintaining cryptocurrency.

Read more: Bitcoin isn't getting greener: four environmental myths about cryptocurrency debunked[11]

And a user-centric model is not without flaws[12]. For the model to be truly tested requires full cooperation from record labels, music publishers and digital platforms.

Anything less would create fundamentally unequal conditions for artists using different services.

Even TikTok isn’t putting all their eggs in the blockchain basket. In June 2020[13] TikTok established partnerships with major labels and Indie consortia for music distribution, and in July 2021[14] TikTok announced a new partnership with Spotify to offer premium services exclusive to European artists.

But, after years of sensational claims and unfulfilled promises that blockchain will transform the future of the music industry, TikTok has taken a tangible step towards uncovering what that future might actually look like for everyday artists.

References

  1. ^ TikTok announced (www.rollingstone.com)
  2. ^ Demystifying the blockchain: a basic user guide (theconversation.com)
  3. ^ independent artists and analysts (www.npr.org)
  4. ^ first steps towards user-centric (www.musicbusinessworldwide.com)
  5. ^ The secret of TikTok's success? Humans are wired to love imitating dance moves (theconversation.com)
  6. ^ failing to properly credit artists for their work (ijoc.org)
  7. ^ Recent research (doi.org)
  8. ^ Audius’ co-founder claims (www.rollingstone.com)
  9. ^ spiked on coin markets (www.nasdaq.com)
  10. ^ environmental costs (theconversation.com)
  11. ^ Bitcoin isn't getting greener: four environmental myths about cryptocurrency debunked (theconversation.com)
  12. ^ not without flaws (journals.sagepub.com)
  13. ^ June 2020 (www.musicbusinessworldwide.com)
  14. ^ in July 2021 (newsroom.tiktok.com)

Read more https://theconversation.com/tiktok-is-partnering-with-a-blockchain-start-up-heres-why-this-could-be-good-news-for-artists-166346

The Times Features

Why Regional Small Businesses in Bendigo Deserve Better Access to Finance in 2025

In the heart of regional Victoria, Bendigo has long stood as a beacon of innovation, resilience and community spirit. As we step further into 2025, the importance of nurturing sm...

Is It Time for a Deep Cleaning? Signs You Shouldn’t Ignore

Most people know they should visit the dentist for a regular check-up and cleaning every six months. But sometimes, a standard cleaning isn’t enough. When plaque and tartar build...

The Hidden Meaning Behind Popular Engagement Ring Cuts

When it comes to engagement rings, the cut of the diamond is not just about aesthetics. Each shape carries its own symbolism and significance, making it an important decision for...

Annual Health Exams in the Office: How They Can Reduce Sick Days and Healthcare Costs

Regular health check-ups, especially annual health exams in the office, can significantly impact the overall well-being of your workforce. A proactive approach to employee health...

Best Deals on Home Furniture Online

Key Highlights Discover the best deals on high-quality outdoor furniture online. Transform your outdoor space into a stylish and comfortable oasis. Explore a wide range of d...

Discover the Best Women's Jumpers for Every Season

Key Highlights Explore lightweight jumpers for spring and summer, ensuring breathability and ease. Wrap up warm with cozy wool jumpers for the chilly autumn and winter season...

Times Magazine

The Essential Guide to Transforming Office Spaces for Maximum Efficiency

Why Office Fitouts MatterA well-designed office can make all the difference in productivity, employee satisfaction, and client impressions. Businesses of all sizes are investing in updated office spaces to create environments that foster collaborat...

The A/B Testing Revolution: How AI Optimized Landing Pages Without Human Input

A/B testing was always integral to the web-based marketing world. Was there a button that converted better? Marketing could pit one against the other and see which option worked better. This was always through human observation, and over time, as d...

Using Countdown Timers in Email: Do They Really Increase Conversions?

In a world that's always on, where marketers are attempting to entice a subscriber and get them to convert on the same screen with one email, the power of urgency is sometimes the essential element needed. One of the most popular ways to create urg...

Types of Software Consultants

In today's technology-driven world, businesses often seek the expertise of software consultants to navigate complex software needs. There are several types of software consultants, including solution architects, project managers, and user experienc...

CWU Assistive Tech Hub is Changing Lives: Win a Free Rollator Walker This Easter!

🌟 Mobility. Independence. Community. All in One. This Easter, the CWU Assistive Tech Hub is pleased to support the Banyule community by giving away a rollator walker. The giveaway will take place during the Macleod Village Easter Egg Hunt & Ma...

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

LayBy Shopping