Written by: darius0x.eth - Growth Manager
@darius0x
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Introduction

The music industry has been trying to sort itself out for quite some time now. We have seen it go from vinyl, cassettes, and CDs to mp3s, and streaming services.

But these technical advancements certainly aren’t the only things that shaped the music industry as we know it today.

Artist-label relations were always the talk of the town. For many decades, artists have expressed their frustrations with major record labels for the lack of control over their music and income.

Record labels often take a significant portion of the revenues generated by an artist's music. This can include not only the money from album sales, but also from touring, merchandise, and licensing deals.

Music distribution platforms such as streaming services are not helping much either since they tend to prioritize their own interests as well leaving music artists with limited options.

Luckily, the ship has started to steer against the wind again and we’re witnessing a new technological revolution that is bound to change the music industry for the better.

The birth of blockchain technology and non-fungible tokens (NFTs) is now offering a new playground for music artists to finally get what they deserve and build a stronger connection with their respective audiences.

To have a better perspective on how this shift has started and the benefits it provides to the artists, we need to understand how the internet and decentralization sparked the change that we see today.

The start of the revolution

Back in the early/mid-90s, the music industry was experiencing its golden age. Album sales were booming, and profits were skyrocketing thanks to the - at the time very successful - CD format.

However, by the end of the decade, things took an unexpected turn.

The rapid growth of the internet and the adoption of a digital audio file format known as MP3 gave life to the file-sharing revolution. It allowed people to easily share digital files, such as music, movies, and software simply through the availability of an internet connection and their home computer.

One of the most significant developments during this period was the rise of Napster, one of the first popular file-sharing services.

Napster allowed users to search for and download digital copies of songs from other users' computers, effectively allowing people to access and share music for free. This posed a major threat to the traditional business model of the music industry, which relied on the sale of physical copies of music, such as CDs.

The platform’s rise in popularity led to widespread concerns about music piracy, as it became much easier for people to access and share music without paying for it.

It had a negative impact on the revenues of record labels and artists and led to a number of high-profile lawsuits against Napster and other file-sharing services.

At the time, both the artists and the record labels suffered dramatically but it was the start of a long-needed change.

Despite the controversy, Napster's impact on the music industry was undeniable.

The service helped usher in a new era of digital music and paved the way for the development of other popular music-sharing platforms, such as iTunes and Spotify.

It also helped to accelerate the shift away from physical music formats and towards digital ones, which has become the norm in the industry today.

The era of streaming services

Music streaming services began to emerge in the early 2010s, as broadband internet connections became more widely available, and the cost of data storage decreased. These services offered users the ability to listen to large libraries of music on demand, without needing to download or store the files on their own devices.

One of the first popular music streaming services to appear on the scene was Spotify, which launched in 2008 in Sweden. The platform allowed users to listen to a wide range of music for free, with the option to upgrade to a paid subscription that offered additional features, such as the ability to listen offline and access exclusive content.

Other music streaming services soon followed, including Apple Music, Pandora, and Tidal. These platforms offered similar features to Spotify and helped to facilitate the growth of the music streaming industry.

Today, streaming services are a major part of the music ecosystem, and they have largely replaced traditional forms of music distribution, such as the sale of physical copies and digital downloads.

However, there are several potential downsides to these platforms.

One major issue is that the revenues generated by these services are often quite low, compared to the sale of physical copies of music or digital downloads. This means that artists and musicians may not earn as much money from streaming as they would from other forms of music distribution.

Another downside is they can make it more difficult for new and emerging artists to gain exposure and build a fanbase. Because there is such a large amount of music available on these platforms, it can be hard for new artists to stand out and attract the attention of listeners.

Additionally, some critics argue that music streaming services can lead to a decline in the overall quality of music. Since these platforms often use algorithms to recommend music to listeners, there is a risk that they will promote music that is popular or well-known over more experimental or niche genres. It can lead to a homogenization of the music industry, where only a small number of artists and genres are able to thrive.

Giving power to the artists through NFTs and decentralization

Over the past few years, the emergence of blockchain and adjacent solutions such as non-fungible tokens (NFTs) started delivering unique and unprecedented use cases for the music space.

This new paradigm shift has been labeled as Web3 or Web 3.0 referring to the third iteration of the World Wide Web that places its primary focus on security, transparency, ownership and decentralization.

Through the use of blockchain and decentralized networks, Web3 music platforms aim to provide artists with more control over their careers and enable more direct and transparent relationships between artists and fans.

Out of all the different use cases and solutions of Web3, the most significant one for music artists is the application of NFTs.

NFTs, or non-fungible tokens, are unique digital assets that can be bought, sold, and traded on blockchain-based platforms.

By creating unique, digital collectibles that fans can purchase and own, artists have the ability to earn income and create a sense of exclusivity and scarcity that increases the value of their work.

Another way that NFTs can benefit music artists is by enabling them to create new experiences and interactions for their fans.

For example, an artist could create an NFT that provides fans with access to exclusive content, such as live streams, behind-the-scenes footage, or unreleased new music to create a more engaging and immersive fan experience and foster a sense of community and loyalty among fans.

This new wave of decentralized music has seen a new generation of Web3 artists coming up with innovative ways to appeal to their fan bases and make music more accessible. NFTs and virtual concerts, as well as increasingly decentralized music label models, are becoming a regular fixture in the Web3 music world, giving musicians like never before the capacity to be their own artist-entrepreneurs.

The evolution of Web3 music has given each artist the chance to truly own their art and have complete control over the distribution which is what the streaming services and previous innovative solutions have failed to accomplish.

Introducing Libby

Libby is a decentralized community-based web3 label/agency hybrid helping music artists to take advantage of NFT economy.

We offer a wide range of services including syndication on crypto streaming platforms as well as the creation and promotion of music NFTs on various audio NFT marketplaces.

Our Solution

• Building a community-curated & governed ecosystem of Web3 music projects that makes the journey of new users easy & safe.

• Accelerating mainstream adoption of Web3 technology as a means to enable musicians, their audiences, as well as other industry professionals to engage with the music economy directly.

• Developing Web3 music ownership, rights transfer, publishing, advances, pre-release sales and promotion, distribution, label services, management services, and streaming all within an open, distributed, smart-contract-based platform.

Our Values

Diversity

Most traditional labels limit themselves to a particular genre of music. We don't subscribe to this way of thinking; we feature *all* genres of music from people of all races, religions, and beliefs.

Honesty

It's no secret that several crypto/NFT projects "rug pull" or take other people's money and run. Honesty is a major pillar of our values here at Libby - you can trust that we'll keep our word, 100% of the time.

Think Big

Selling yourself short is a self-fulfilling prophecy. Leaders create and communicate a bold direction that inspires results. They think differently and look around corners for ways to serve your target audience.

If you want to start your Web3 music journey and grow your audience while focusing on your craft, don’t hesitate to check out our website for more information on how to join the community.