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Submitted 15/02/20, 1st revision 25/03/20, accepted 10/04/20
Abstract:
Purpose: A burgeoning body of research has described how the blockchain technology may affect the way firms operate within the recording industry which has undergone profound changes due to the dematerialisation of music and the emergence of now consumption habits. The purpose of the paper is to explore both the challenges and the opportunities related to the application of smart contracts and blockchain mechanisms to the recording industry.
Approach/Methodology/Design: Based on a review of contributions made to the literature in various fields, we discuss recent developments, relying on several examples and use cases which bring an updated perspective to a topical question. While the blockchain brings interesting solutions in favour of an improved management of copyright data and fees collection, several barriers impede their uptake and large-scale adoption.
Findings: We argue that the absence of both technological and regulatory standards, the resistance to change, and the necessary use of cryptocurrency, are all obstacles to a profound transformation of the sector.
Practical Implications: To overcome these limitations, we suggest three recommendations that deal with technological standards, cooperative agreements, and international regulation around blockchain.
Originality/Value: So far, the literature tends to focus either on blockchain technology or on smart contracts when discussing technological evolution within the recording industry. In this paper, we bring together these two elements which are definitely complementary to each other. Further research efforts are required to investigate in more details the feasibility and relevance of the recommendations we make.
Keywords: Recording industry, blockchain, smart contracts, copyright.
JEL classification: F6, K2, O3.
Paper Type: Research study.
1. Introduction
The recording industry has always been at the forefront of the sectors that have been impacted by digital technologies. Due to the non-material nature of music, the recording industry has been consistently shaken by technological advances, which have been as swift as they have been profound. The industry has often shown a particularly active hostility towards digital. The fight against piracy, from both a legal and technological standpoint - let us recall the infamous DRMi - has demonstrated all of the limitations of an approach that aims to remain consistently on the defensive.
The revenue generated by the recording industry has grown by 8.1% in 2017, thus...