How is the Music Sector of Ireland Affected by Bitcoin?
The music sector of Ireland is experiencing massive change. With the help of this technology, the local market can be grown, and artists worldwide can be helped to earn a living from their art. According to The Guardian on 13th March 2017, the music industry in Ireland has seen revenues grow by 7% over the last financial year. For more information, you can visit website here.
Some Positives of Bitcoin are that it Benefits the Music Industry of Ireland.
There’s a lot of buzz around cryptocurrencies at the moment, with a multitude of new coins and technologies emerging in an increasingly saturated market.
But it cannot be ignored that Bitcoin is still king, boasting a $227B market cap and dominating both news cycles and cryptocurrency trading charts. Moreover, many people see the potential for additional benefits in adopting cryptocurrencies, and the music industry is no exception.
1. Artists can sell their content directly to consumers
The internet has changed how you access music, but it has also created many problems, particularly for artists. Whereas record labels used to take up to 90% of revenue from an artist’s music, musicians can often struggle with getting their content online and seeing any profits at all.
Although streaming services like Spotify are rising, many artists are still left out of pocket. For example, the award-winning Irish rap artist Rejjie Snow recently shared his frustration at not making any money from the success of his single ‘Hello.’
He decided to take matters into his own hands and release an experimental self-funded album available only on cryptocurrency’s blockchain network. The album is available to download and stream for free on Monero Music, with all proceeds going directly to Rejjie himself.
2. The industry can save money through new payment processing
For many Irish musicians, accepting payments is expensive, requiring third-party parties such as PayPal or Stripe. Indeed, it is estimated that most musicians pay between 9% and 15% in fees for accepting credit card payments.
Transaction fees on the Bitcoin network are substantially lower than those charged by traditional payment processors, with an average price of just $0.04.
Additionally, using bitcoin-enabled payment processors such as BitPay, fees can be reduced further or eliminated. As a result, such companies can provide a plug-and-play solution for international artists looking to sell their music without worrying about transaction costs.
3. Fast and efficient settlement of royalty payments
When musicians sign up with a record label, it can take an age to receive royalties. Unfortunately, even established artists are not immune from these problems, as shown by singer-songwriter Imogen Heap who recently partnered with Ujo Music in adopting blockchain technology to solve this industry-wide issue.
In stark contrast, Bitcoin payments are almost instantaneous and automated through smart contracts. Moreover, since all transactions on the blockchain network are recorded publicly, it is easy to see where royalties need to go, reducing the risk of errors in royalty distribution.
Some Negatives of Bitcoin that Affects the Music Sector of Ireland
One of the biggest obstacles to the broader adoption of Bitcoin is its volatility. Like traditional currencies, cryptocurrencies experience fluctuations in value based on market forces, making them difficult to adopt as an industry standard for music payments.
However, it’s not all bad news; the same volatility which makes cryptocurrencies unsuitable for use as a long-term store of value also makes them ideal for use in microtransactions and daily payments.
3. Lack of industry support
Getting the world’s music industry to accept cryptocurrencies is an uphill battle, mainly when crypto prices are crashing. However, many online retail companies have been quick to adopt Bitcoin due to its benefits, and it is predicted that the music industry will follow suit.
Although cryptocurrency may not be mainstream yet, it is becoming increasingly likely that blockchain technology will play a vital role in the music sector moving forward. New payment processing technologies are making cryptocurrencies an attractive option for artists. However, they are likely to disrupt the present music industry if they can discover methods to collaborate. So, as you can see, bitcoin has both positive and negative impacts on the music sector.