How songs turn into stocks

Music producers Christoph Straub and Michael Hanisch of Amazon Web Services share a real-world example of how NFTs bring artists and their fans on the same boat.

Every time a song is played on a streaming platform or on the radio, artists make and produce money because only they own the music rights. An Austrian music label now wants to change and expand this status quo.

With the music platform Global Rockstar, a music label from Vienna, music enthusiasts, fans and small investors can invest in songs by artists by acquiring shares in the music rights. If a song is played on the radio or on streaming platforms, investors make money.

Blockchain-based global innovation

“My goal was to create an artist-friendly record company that would lead the music industry into a new generation. Now, with the help of Amazon Web Services, we have created a global, blockchain-based innovation that allows fans to invest in a new single or a new album by their favorite artist.In return, you can participate in the revenue from streams and radio broadcasts for 70 years »explained Christopher StraubCEO of Global Rockstar, the idea behind it.

This is also an interesting way to finance production costs, especially for young artists. Felicia Lu’s The song “Anxiety” became the first song in the Eurovision Song Contest. And this song is not an isolated case: You can now invest in about 60 artists on the platform by buying music shares.

Therefore, the site has similarities with a crowdfunding platform: Artists and songs are presented, fans and investors choose which songs they want to buy shares of. When the deadline for buying shares has expired, they are issued. Global Rockstar takes over the remaining shares. From the time of publication, the economic flow has reversed. Those who have invested will make money on the music rights if the song is played on the radio or on streaming platforms. The artists also earn thanks to fair terms, but fans can participate financially in the success of their favorite stars.

Secure traceability by transfer of rights

Global Rockstar’s digital platform has been around since 2014, but until now, the song “Ownership” has been certified with a contract in PDF format. In November 2021, Global Rockstar launched the world’s first Music NFTs (Non-Fungible Tokens), which certify ownership of music rights using a blockchain.

Ethereum and a polygon side chain are used – but investors do not need crypto-know-how, as Global Rockstar hides the complexity behind a user-friendly interface. The company worked closely with Amazon Web Services (AWS) to develop the underlying technology. Using the Amazon Managed Blockchain cloud service, Global Rockstar is securely connected to the publicly visible blockchain network.

For NFT owners, this means that their ownership of a music stock is now represented in the form of a blockchain token. On the other hand, it ensures unchanging registration of ownership of music license fees and secure traceability when rights are transferred to new owners. Therein lies one of the outstanding benefits of this concept: tokens offer special protection against counterfeiting because they are immutable and traceable.

To manage their tokens, shareholders have access to their personal digital wallet (crypto-wallet). Here, too, Global Rockstar supports users. “The music rights information is then stored on the blockchain so that everyone can see it and can not be lost.”explained Michael HanischHead of Technology Germany at AWS. “Global Rockstar and AWS Professional Services have a lot planned together and are already working on a version 2.0 of the platform, on which it should also be possible to exchange music tokens.”according to Hanisch.

Shares in collectibles and evergreen songs by big stars

Collectibles will complement the Music NFT market on May 26th. For example, these will be unreleased demo footage of famous stars that fans can buy and also resell on Global Rockstar’s NFT marketplace. There are also participation rights to evergreen songs and international superstars on Global Rockstar.

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