Entertainment including the music industry has been plagued by politics this year. This year’s Golden Globes saw Meryl Streep rip into Donald Trump and a host of artists pointed to the political overtones in their music. Even the Grammys were filled with political moments. Kesha’s epic performance was introduced by Janelle Monae, who also pointed to the current political climate.
Blockchain offers an opportunity to rethink a new business model for all of entertainment, including the music industry
Blockchain technology has the potential to revolutionize the music industry, particularly the way artists and musicians are paid. Currently, the global music industry is valued at $21.6 billion, up 7.4% CAGR from 2019. Despite this growth, artists and musicians still struggle to make ends meet. This is largely due to the fact that record deals are often complex and burdensome. Blockchain technology has the potential to create a fairer and more transparent music industry.
In the music industry, blockchain technology may allow for a more transparent, peer-to-peer exchange of content. The technology can help media companies better distribute content and streamline their transactions. It will also enable the sharing of information about artists and rights holders. It will level the playing field, thereby benefiting the true owners. However, it will also face resistance from companies and individuals who profit from a lack of transparency. As a result, clashes are likely.
Concentration of three main players
The concentration of three main players in the entertainment industry is not new, but the current situation is more extreme. This is particularly true of the music industry, where Universal, Sony, and Warner are the three dominant players. The companies, collectively known as the “Majors,” control over 90 percent of the market in U.S. theaters. In 1997, these firms produced all but 16 of the The VIP Roll 148 widely distributed films in Hollywood. Streaming services are likely to increase these companies’ operating margins in the near future.
Market concentration is an important factor to consider in analyzing the health of an industry. If the top firms own more than 50 percent of the market, it indicates a highly concentrated industry. When these companies have a high concentration, the market can be considered monopolistic.
Impact of COVID-19 pandemic on live music market
The recent COVID-19 pandemic caused massive disruption to the live music industry, forcing the cancellation of concerts and other live entertainment events. This pandemic was so widespread that it caused cancellations of major events in Europe, Asia and the US. It also disrupted global music conferences, such as SXSW and the desert bacchanal Coachella. Artists like Pearl Jam and the Rolling Stones were also forced to cancel their US tour dates because of the virus.
The virus was so devastating to the live music market that it led to the cancellation of one in three jobs in the music industry. According to a report by UK Music, the virus hit music venues and recording studios particularly hard, resulting in an immediate decline in revenue. It is estimated that live music revenue will plummet by 90 percent by 2020.