Spotify Has Acquired Blockchain Startup Mediachain
Spotify purchases Mediachain in an effort to ease the process for paying out artist royalties.This article originally appeared on Forbes
Spotify has officially entered the blockchain world with its acquisition of a new startup called Mediachain. The new buy, which was initially announced by the music titan itself, will hopefully help Spotify pay the right people for every track that is played on its immensely popular service, a task that is only going to become increasingly difficult as the service collects more users.
The world’s most popular streaming music service has had issues in the past (as have almost all streaming services) with ensuring that the right creators are paid for every stream for a number of reasons, and there is no easy solution. Billions of tracks are played on Spotify every day, and many songs don’t have the proper metadata to ensure that the correct songwriters, artists or rightsholders are tagged, meaning royalties may go missing or not be registered at all. On top of that, distributing that much money to countless collection agencies is not a simple process for any company, even one of the largest in the world.
Blockchain technology is one of the hottest topics in the music industry, with many forward thinkers championing it as a way to ensure money gets where it needs to go properly. As the business has transitioned from sales of CDs to MP3 downloads and then streaming, it has become increasing difficult to keep track of the trillions of data points that are needed to pay royalties to the correct people. While its adoption has so far been somewhat slow, many are touting blockchain companies like Mediachain as potential saviours of the industry, as they can typically help not only with correcting payouts, but doing so in a more transparent and efficient manner.