The Tempo of Upheaval: How Business-to-Business Marketplaces are Changing Music Rights

Music is a constant in everyday living rhythm. Some people are obsessed with music; according to Wrapped by Spotify, I listened to music for over 125,000 minutes last year—nearly 6 hours per day on average—not including YouTube, movies, or video games!

The fact that even the "average" adult listens to music for more than three hours every day is evidence of how ingrained it is in our culture. The music business has a massive yearly worth of over $28 trillion, which is difficult to comprehend, in addition to its enormous viewership.

Another feature of the music scene is how quickly it is changing. Just twenty years ago, CDs accounted for almost ninety-five percent of music sales; now, they only make about ten percent of the market. The transition of the music industry from vinyl and cassettes, which was where we started, to streaming is a testament to its revolutionary character.

Through the lens of this industry, we are able to see the large-scale activities of the creative industries. It draws attention to any constraints that these sectors may experience. Since they unite the creative and commercial spheres and guarantee that talent is acknowledged and rewarded in today's society, intellectual property (IP) rights and the linked sectors are especially important.

Why Does the B2B Marketplace for Music Rights Need to Exist?

The music rights market has all the elements required for a B2B marketplace to succeed, just like other industries. With millions of artists and hundreds of thousands of agencies working together to provide music to billions of people, it's a very fragmented economy. The procedures and value chain are incredibly complex and inefficient. A B2B marketplace has a significant chance to upend the antiquated status quo due to the lack of transparency in licensing, technology, and distribution.

Consider a computer game that features a Beatles song that has been reworked with new lyrics, lead vocals by a contemporary band, and parts that are played by artificial intelligence (AI) that imitate Michael Jackson. The complexity of managing intellectual property rights becomes evident when one considers the addition of multilingual presentations and varied regional royalty schemes. A B2B marketplace is invited to simplify and expedite the procedure due to its intricacy.

Opportunities for Disruption in the Music Industry

In many music industry areas, there are no platform options. Innovation is welcome in the licensing process, plagiarism checks, IP usage and regulation monitoring, music distribution and price, and licensing procedures. A B2B marketplace may also change how artists and labels communicate with one other or with fans directly, making it easier to raise money for new records, for example. Platform solutions can improve transparency and efficiency in the process from guitar string to listener's heart, even though the elusive "hit" production is still an art form.

What B2B Marketplaces Offer

The main advantages of a B2B marketplace are data reconciliation and increased transparency. These systems have the ability to trace consumption, match sound and publication records, and improve transparency throughout the process. As a result, pricey industry problems are resolved, and IP rights may now be verified and transferred in minutes as opposed to weeks.

Furthermore, markets have the potential to improve industry collaboration in a number of areas, including songwriting, label relations, and distribution reorganization, all of which may increase artist reach and provide novel approaches to revenue generation.

Forecasts for B2B Marketplaces and the Industry

1. The emergence of B2B markets that oversee transactions between labels, artists, and streaming platforms is expected to support the sustained expansion of streaming services.

2. NFT markets and cryptocurrency platforms are not the answer, but we may anticipate more democratization and greater transparency in royalties and artist pay. Although many of them have emerged, and blockchain technology may undoubtedly provide a strong basis for industry platforms, they won't significantly advance the music rights sector.

3. Labels' function as middlemen could become less important if they shift to specialization and provide artists more value.

5. The use of AI will improve platforms with more sophisticated recommendation engines, content curation, and predictive analytics, further revolutionizing the IP market.

The music rights sector is about to enter a revolutionary period. I view B2B markets as instruments for justice in an industry where every note matters, as well as a tool for efficiency, as a strong supporter of both technology progress and music. They have the ability to balance the demands of customers, producers, and artists, guaranteeing that the music business will continue to be as vibrant as it has been in the past. B2B markets are the conductors in this dynamic symphony of music rights, bringing in a new era of openness, innovation, and accessibility.