Message from Noble Drakoln, CEO of Band Royalty
Dear Investors, Partners, and Fellow Believers in the Future of Music,
I hope this message finds you well. I write to you today not just as the CEO of Band Royalty, but as a passionate advocate for the future of the music industry and the artists who power it. Our mission is simple, but profoundly important: to ensure that creators — those who breathe life into music — are fairly compensated for their work. As we stand at the precipice of a new era in the industry, it is vital that we take a moment to reflect on how we got here, where we’re headed, and how Band Royalty is uniquely positioned to lead the charge in reshaping the landscape.
The Rise of Spotify and the Industry’s Shift
In the early days of streaming, Spotify emerged as the great promise of the digital age. Music would be more accessible than ever before; fans could stream any song, anytime, anywhere. It was a democratization of music — a global stage for artists and creators. However, as the years have passed, the reality of this model has proven to be far more complicated, and in many ways, detrimental to the very creators it sought to champion.
Spotify’s business model is predicated on mass consumption and an advertising-driven revenue stream. The platform’s algorithms have revolutionized how we discover music, but they have also turned music into an endless, disposable commodity. While Spotify boasts over 450 million active users, with hundreds of millions of streams every day, the vast majority of the revenue generated from these streams does not go to the artists who create the music. In fact, many independent musicians struggle to see any significant return on their work at all. The streaming service pays out a fraction of a cent per stream, and only a select few artists — those who already have major label backing or an established fanbase — are able to benefit from the platform’s massive scale.
To put it bluntly, Spotify and other streaming services have distorted the value of music. The numbers speak for themselves: Only a small fraction of artists make enough to earn a living wage from their music alone. According to recent reports, more than 90% of musicians earn less than $1,000 annually from streaming royalties. Many of them must rely on live performances, merchandise sales, or alternative revenue streams to survive. This imbalance has led to a growing inequality in the music industry, where the giants of the platform — such as Spotify — continue to generate massive profits, while the creators of the content are left with a pittance.
The Crux of the Problem: A Lack of Fair Compensation
The issue goes beyond just the small payout per stream. The lack of transparency in how royalties are calculated and distributed is another major problem. In a traditional music deal, the artist might receive royalties from physical sales, digital downloads, and, in some cases, airplay. However, with streaming platforms, the revenue is pooled together and distributed based on a complex and opaque formula that very few artists fully understand. As a result, many musicians have no idea how much they should be receiving, or even who they should be receiving it from.
Spotify’s revenue-sharing model disproportionately benefits major labels, which own the rights to a vast amount of the content that generates the most streams. These labels, which act as middlemen, take a significant cut before the artist ever sees a dime. The remaining revenue is then fragmented and diluted by the platform’s payouts, meaning the artist often ends up with a fraction of a fraction of what they should rightfully earn. The system is broken, and it is a system that we at Band Royalty aim to fix.
Our Mission: A Fairer, More Transparent Music Industry Through Blockchain
At Band Royalty, we believe that blockchain technology holds the key to unlocking a fairer, more equitable future for musicians and music fans alike. The core promise of blockchain is decentralization — the idea that we can remove intermediaries, middlemen, and centralized institutions from the equation, thereby giving creators more control over their work and the revenue it generates.
By leveraging blockchain, we can create a transparent, secure, and immutable system for managing music rights, royalties, and distribution. Each transaction in the music ecosystem — from a stream, to a purchase, to a performance — can be tracked on the blockchain, ensuring that every artist is fairly compensated for every use of their work. Through smart contracts, artists can receive real-time payments directly from listeners, bypassing the need for traditional music labels and streaming platforms that have historically siphoned away the majority of the revenue.
Our platform at Band Royalty is built on this vision: a world where artists, no matter their size or influence, can have direct access to their fanbase, fair compensation for their contributions, and transparency in how their royalties are distributed. With the power of blockchain, we can ensure that every song is tracked, every stream is accounted for, and every artist is paid immediately and fairly.
The Advantages of Blockchain for Music
1. Transparency and Trust: Blockchain provides a transparent ledger that allows artists to track every transaction involving their music. By removing the need for intermediaries, we create an ecosystem where artists can trust that they are receiving what they are owed.
2. Real-Time Payments: One of the most significant problems with traditional music distribution is the delay between when a song is played and when the artist receives payment. Blockchain allows for real-time transactions, meaning artists are paid immediately after their music is consumed.
3. Fairer Royalties: Traditional royalty models are convoluted, with many stakeholders taking cuts before the artist sees any money. With blockchain, smart contracts can ensure that the artist receives their fair share directly. There’s no need for a middleman to take a large percentage.
4. Ownership and Control: Blockchain empowers artists to own their content and control the distribution of their music. They can release music directly to their fans, set their own prices, and retain full rights to their intellectual property.
5. Fan Engagement: Blockchain enables direct interactions between artists and fans, fostering a more personal relationship. Fans can support their favorite artists not just through streaming but by purchasing limited-edition tokens, NFTs, or other digital assets that directly contribute to the artist’s revenue.
Band Royalty’s Vision: A New Era for the Music Industry
At Band Royalty, we are not just focused on disrupting the status quo for the sake of disruption; we are focused on creating a system that benefits the artists, the fans, and the music industry as a whole. Our goal is to restore the true value of music and ensure that those who create it are rewarded for their passion, creativity, and hard work.
We are at the forefront of a new era — an era where artists can thrive without being at the mercy of platforms like Spotify. Through blockchain technology, we can create a decentralized music ecosystem where everyone wins. Our platform is built with this in mind, and as we continue to grow and scale, we are committed to remaining at the cutting edge of technology, working tirelessly to ensure that the musicians who have been left behind by traditional systems will have a brighter, more secure future.
As we continue to expand our network, develop our platform, and bring more artists and fans into the Band Royalty fold, we are grateful for your continued support and belief in our vision. Together, we will reshape the music industry and give artists the tools and opportunities they need to succeed.
Thank you for your trust and partnership as we build a fairer, more transparent music ecosystem.
Sincerely,
Noble Drakoln
CEO, Band Royalty, AG
