Web3 is on fire. Whether it is the Internet of web2 or Crypto, they are looking for different paths to realize web3, and the experimenters have also achieved obvious consistency in the goal: to return the ownership of user data and related rights and interests.
This also means that many industries and platforms in the traditional Internet also need to undergo the transformation of web3 to become a new industrial structure or platform structure.
In these industries that need to change, the music IP industry is one of the important roles, and it may become a model case of industrial change in the future. In this article, we will take Euterpe as an example to show how the use of blockchain technology and web3 concepts can transform the music IP industry.
Music IP is the core of the entire music industry. Relying on the creation, production, distribution, marketing, payment flow, derivatives and other processes involved in the entire life cycle of music IP, the music industry has formed a huge structure.
In this huge structure, there are many loopholes due to role collaboration, and these loopholes all extend around copyright circulation and revenue. Euterpe uses the technical characteristics of the blockchain to solve the copyright circulation and revenue problems of the blockchain as the core, and then builds a new music IP platform supply chain system on the platform.
IP NFT as a Service with SocialFi
The Euterpe team is well aware of the ills of the huge music industry.
First, the copyright market for creative works such as music and movies traditionally involves complex licensing transactions and high transaction costs. What’s more a pity is that for every dollar consumers pay for IP, creators may receive less than 15 cents, not only the rest of the money becomes other costs. Payment of these royalties may also be credited two years after the user pays.
These problems reflect the immaturity of industry collaboration and rights distribution mechanism. In the final analysis, the industry chain is inefficient.
Therefore, Euterpe proposes a blockchain copyright trading platform to improve the efficiency and accuracy of copyright transactions by encoding thousands of copyright rules and licensing terms in blockchain-based smart contracts. Based on Euterpe’s platform, creators could earn 16 times more royalties per stream payment than Spotify and 80 times more than YouTube. And creators can realize instant payment.
Relying on the characteristics of the blockchain, Euterpe also allows creators to sell copyrights of works to fans, and fans can directly invest in works in exchange for copyright shares in the form of NFTs. In terms of ecological flow, Euterpe authorizes the distribution and promotion of works through SocialFi, which can mobilize users to assist in distribution and promotion to mine more EUT tokens, and cultivate another healthy ecosystem with additional incentives between creators and users .
Euterpe’s Responsibilities and Competencies
As the creator of the platform, Euterpe has many responsibilities.
From a platform point of view, Euterpe uses the smart contract of the blockchain to realize the tokenization of copyright, and uses NFT as the representative of copyright to open up the ecology on the chain and off the chain. In the context of smart contract operation, legal contracts and Corresponding legal resources support the operation of smart contracts in real life and achieve the same effect as legal contracts.
The second is to have a detailed solution for each copyright, the royalty income under each application scenario, how to collect, who to collect, how much to collect, and so on.
On the whole, Euterpe aims to create a one-stop solution for the whole industry chain from copyright confirmation, to copyright authorization, transaction, transfer and subsequent dispute resolution.
And these are mainly achieved through the integration of APIs and smart contracts. That is to use the advantages of blockchain technology to allow the traditional music market to accept NFT and blockchain technology. For this Euterpe needs to make a lot of arrangements.
The Euterpe team introduced its implementation plan to the author in detail.
The Euterpe team believes that copyrighted works, including music, movies, etc., have a natural combination with the blockchain. Unlike other tangible properties such as houses or cars, these intellectual property rights can exist completely digitally, making it easy to transfer and trade on the Internet.
For copyright to land on the blockchain, Euterpe has three main conditions:
1. Copyright, as a unique intellectual property rights, involves complex legal rules, transaction processes and industry practices. Euterpe has a professional reserve in intellectual property rights, and sorts out the complicated real-world rules into efficient smart contracts.
2. Copyright blockchain projects must be combined with copyright industries such as music and movies, and have the ability to mobilize the resources of the rich industry, so as to quickly gather excellent artists and works and form a benign creative ecology. This requires the participation of more practitioners with copyright and legal capabilities in the NFT industry, and together with the technical team and product team, these parts are integrated to provide real value for both copyright owners and users.
Euterpe’s team has many veterans from the copyright industry, and also said that they will pay special attention to the efforts and rewards of ecological partners, and will maintain such an attitude and philosophy for a long time.
3. The source of music IP is the creator. Euterpe attracts a large number of popular and high-quality copyrighters and musicians through the positioning of high-quality IP NFTs, manages and protects the IP, and uses the built-in SocialFi mechanism of the system. The settled musicians gain new publicity capabilities. Through IP NFT tokenization and supporting auctions and transactions, copyright owners can obtain new financing channels.
Innovate in the web3 world
Euterpe can technically use the blockchain to solve the problems of the music industry. In the model, it can adopt B2C to establish a moat of the platform, and steadily build an industrial platform with a market value of 10 billion.
Although this is an extremely clear traditional path, after relying on the blockchain to enter the web3 world, Euterpe can reflect more vitality by using multiple gameplays.
First of all, in terms of NFT design, Euterpe has designed two types of NFTs. Every time the creator creates a work, a diamond NFT will be generated, representing 50.1% of the copyright of the work, and there will be another 499 gold NFTs, representing 49.9% of the work. copyright. Such a design can realize the decentralization of the copyright of works through gold NFT, reducing the difficulty and risk of investment, and the value of the work itself can form an NFT trading market after the performance of the fragmented NFT, which provides the realization of the value represented by the NFT. fluidity.
Second, Euterpe uses tokens to incentivize users to form platform potential. After analyzing the purpose, feasibility and scientificity of its token system design, Euterpe formulated the following token economic model:
Payment: Auctions, transactions, royalties, and Gas of SocialFi are all done by tokens on the platform;
SocialFi: Tokens as a reward for SocialFi;
Pledge: Tokens can be pledged to obtain pledge rewards;
Governance: Tokens can be used to vote on works.
In the entire economic model, the purpose of SocialFi is to shape a closed-loop path and realize rotation.
Under this function, Euterpe users can participate in the ecology by playing, sharing and voting, and the royalty income generated in this process will be distributed to copyright owners and NFT investors through smart contracts. This represents the profitability of the platform’s internal ecology.
The IP of the entire platform can also realize the output of derivatives. Euterpe will gradually distribute the royalty access contracts generated by streaming media platforms, offline bars, nightclubs, shopping malls, KTV, etc. through various methods such as API access. This represents the profitability of the external ecology of the platform.
future and present
After the smooth transformation and development of the industrial platform, Euterpe will end up in a whole industry chain form, and there will be investors, copyright owners, creators, and fans in the whole industry chain. And each character gets target value in the platform.
Copyright owners and creators: Traditional streaming media platforms greatly limit the value of copyrighted works. Euterpe provides copyright owners with higher per-stream income and light-speed distribution of copyright income, which is fair and transparent. Release the kidnapping of creators who are highly dependent on the investment and publicity channels of record companies, so that creators can control the value distribution of their works 100%.
Investors: Investment in the traditional copyright industry requires huge funds and involves huge risks. Euterpe diversifies investment risks through copyright NFT fragmentation, lowers the threshold, and maximizes the development of copyright value.
Fans: In the traditional copyright industry, fans act as end users and creators are separated by layers of intermediaries. Euterpe removes the intermediary link to the maximum extent so that fans can directly support their favorite creators.Euterpe regards fans’ broadcasting, promotion and voting behaviors as contributions to the community, and gives corresponding token rewards to fans according to their contributions, so that fans can enjoy great works and get rich benefits from their artistic taste. From a buyer-seller relationship to a co-prosperity relationship.
Expressing music IP through NFT is a redefinition of data assets, and this method is also applicable to more types of IP assets, which also means that “music IP may only be the starting point of Euterpe”, as the Euterpe team said , “Amazon focused on books at the beginning, but eventually developed into an everything store in the web 2 era. Our long-term vision will also be to build an everything store in the web 3 era.”
In order to achieve such a goal, in the rapidly developing open world, Euterpe will start with music IP, and then gradually expand to video, books, games, offline concerts, star peripherals, and other IP types such as patents and trademarks etc., will eventually expand to the broad application scenarios of the entire digital-native assets and reality-mapped assets in the Metaverse.
Finally, the author learned about Euterpe’s recent progress and plans. In terms of product release, Euterpe will officially launch music IP products in the second quarter of 2022, and Alpha version testing is currently underway. In terms of platform IP, it has reached cooperation with more than 30 record companies, and the first batch of big singers to be launched has more than 20 singers, with thousands of copyright reserves.
In terms of external market planning, Euterpe will start from the Asia-Pacific region, and has deployed localized community operation channels in Hong Kong, Malaysia, South Korea, Vietnam and other places. In the near future, Euterpe will also establish an NFT platform in Hong Kong with its strategic partner Hong Kong Financial Assets Exchange. , to carry out all-round cooperation in traffic, IP, license, compliance and other aspects.
Looking up at the stars and keeping your feet on the ground, the vision of web3 is far away, but the change Euterpe brings to the music industry is close.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/euterpe-bringing-music-ip-to-the-web3-world/
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