Covid-19 dealt a heavy blow to the music industry in 2020 with almost all live music having to be shut down in response to the global health crisis. In a previous post, I discussed the challenge the music industry faces in making conditions more equitable and how blockchain adoption may be a solution. However, the music business has been struggling for years now in trying to keep up with new technology. Napster turned the tables on the record industry decades ago when its users, sometimes as many as 20 million at a time, were easily downloading troves of pirated music. Although the major labels suffered, it was the artists who suffered most by losing out on the portions of revenue they would have received from the album sales. A major indicator for how the industry will recover comes down to its ability to adapt in the face of the Covid-19 pandemic, making the landscape fairer for artists, and embracing new technology. One such label that has been on the forefront of blockchain adoption for years now is the Boogie Shack Music Group (BSMG).
Hakim Draper
There are many ways the music industry can adopt blockchain, but one of the simplest ways to do so is through the use cryptocurrencies. BSMG founder, Hakim Draper, had the distinct vision back in 2015 to begin using Bitcoin and Ethereum to pay artists, studios, and producers for their work. At the time, it was a way to bring the various music professionals together around the promise both cryptocurrencies and blockchain had to offer as speculative assets and a revolutionary technology that was set to change the world. This paid off as it allowed BSMG to grow in ways it would not have been able to if it were relegated to rely on cash alone. In summer the of 2019, Mr. Draper organized a tour solely financed utilizing cryptocurrencies where three acts traveled on tour buses that were paid for using crypto and the acts sold limited edition merchandise that could only be purchased with crypto. The revenue generated by these digital assets appreciated nearly fourfold providing the artists with a $125 earning per shirt to date if they have chosen to cash out.
This ability to envision the future and embrace its technology did not appear out of thin air. Hakim spent several years in Silicon Valley working as a developer for Fortune 500 companies, Agile Software and Ariba Technologies. This in combination with his years working as a Director of Licensing at Warner Music makes him uniquely qualified to understand how to leverage technology in order to bring value to artists and fans alike. Now Mr. Draper is applying this wisdom through the boutique music technology incubator Boogie Shack Music Group. BSMG provides management and production services specializing in cross-platform integration of technology, global media, and an innovative approach to fan engagement. BSMG is demonstrating the adaptability and leadership the industry needs to progress toward the future by integrating the latest technology to improve the career outcomes of its artists, while finding new ways for music lovers to connect with their favorite acts.
