Art experts, enthusiasts, and even institutions like Kooness Art are now questioning whether blockchain can be used to revolutionize the art industry. Authentication of authenticity is the bane of the art industry, especially if the piece was created years ago by an artist that is no longer in this world. Technology has been used to create many forgeries of unique beautiful art pieces. There is no denying that the business model in the art industry is broken. Not only when it comes to plastic expressions, music and films also suffer the evils of piracy and uneven distribution of royalties. Blockchain could be the answer to all these problems.
The Discouraging Numbers Behind The Art Industry
Before diving into any analysis, let’s get some official figures as a reference to get some perspective about the state of the market. According to the Art Market Report issued by the European Fine Art Fair, all forms of derivative art generated in 2017 $40 billion in revenue. Complementary information offered by the IFPI Global Music report states that the music industry alone experienced growth of revenue of 5.9% with almost 112 million people in the world paying for music through streaming services and generating nearly $15 billion alone on music. The disgracing figure of this equation is that artists only get to see from 15% to 20% of all this money on their end.
Content Creators Looking to Get Rid of The Middle Man
It would be preposterous to avoid the fact that many artists in all fields are more than fed-up with a business model that treats them in such a disposable manner. The crusade to build a separate shop with a platform that kills the middleman represented by large companies has been coming in slowly on mediums that have been expecting the chance to make such a bold move, such as the music industry and even film to some extent. Another unlikely medium which is experiencing the biggest lump in business in their recorded history even with widespread digital distribution in diverse web-based platforms.
Blockchain Steps Up The Game For Content Creators
In the world of Blockchain, many platforms are being developed to offer a whole make-over to the distribution of original content. The technology created to manage digital currencies has one of the most solid tracking methods for content that takes away the centralized component built by long standing corporations. Blockchain opens a door for creators to distribute their content to people directly while keeping the full extent of their profits and the means to certify the proper distribution of their creations. The way it works is marvelous: Blockchain is a distributed ledger that is virtually unhackable, fully transparent, and decentralized from any hub or central server. The minute you buy something on the blockchain, the transaction will be public, and traceable to you and the content creator.
Content Monetization Done Right
While the distribution methods might sound similar to the business structures offered by websites such as Bandcamp and Soundcloud, It’s different from the model provided by these websites that charge a hefty fee to the artists for the use of their platforms. These websites also offer a monetizing structure that aims at low costs for the content distributed on them. Platforms built on blockchain work very differently, the business model of new players such as WildSpark and Opus Foundation give creators the opening to monetize their content while keeping double-digit figures on their earnings and as high as 90% of the revenue they generate on anything they create.
Time to Adapt or Lose Business
Many people center their attention to specific types of art expressions when it comes to the reach of these new initiatives. While it’s true that the two companies previously mentioned favor content that is easily distributed by digital means such as music, podcasts, written pieces, or digital film projects. These are limited to those accounts exclusively. Startups such as Capacity has created a platform to monetize content created using 3D digitizing. There is also an opening for existing platforms such as DeviantArt and Pixiv to build blockchain-based methods that allow creators to distribute their art in printed form and enabling them to earn full access to their profits. Even if they don’t adapt, the chances are that someone else eventually will.