If you are using Spotify, Deezer or iTunes, you have probably heard about the controversies that are regularly raised by the artists shaping the industry. Coldplay, Adele, Metallica… hundreds of them regularly bang their fists on the table pointing to the lack of control over the redistribution of their works and the lack of transparency over revenues. Some of them, such as Radiohead or Taylor Swift, even had their titles withdrawn from these platforms at one time, considering that their remuneration was ridiculously small and totally inadequate: 1 dollar per 1000 streams. “Two figures: zero and two billion,” replied the CEO of Spotify. “Piracy doesn’t pay artists a penny. Nothing. Spotify has paid more than $2 billion to labels, publishers and collecting societies to be distributed to authors and performers.” So one question naturally comes to our minds: Where does the money go?
The way remuneration is channeled is so complex and labyrinthine that the income generated by these platforms, although it is supposed to simplify the transaction and reduce costs, is lower than the sale of traditional records (CD’s). In fact, the website Information is Beautiful revealed in 2015 that when an artist sold a CD, he received $12 per unit sold, whereas when he sold his album on iTunes he received only $5.99. As if dematerialization had raised prices and complicated the sales. The same problem actually arises for the entire digital entertainment market: films, shows, sports events, etc. Considering the constant development of this Entertainment market and the colossal financial stakes it represents ($2,140 billion by 2020, according to Statista), it was urgent to find a solution.
The blockchain applied to the Entertainment industry
It was by launching in 2016, MUUP, his live musical application project that Yann Dib, the CEO of Myrillion, realized the full extent of those difficulties for platforms. “We did the calculation and in order to properly pay all the broadcasting, recording, streaming and other right holders, we had to pay 180% of our turnover,” he estimates. An aberration. The growing number of copyrights, intermediaries and right collecting actors transformed the slightest attempt of diffusing musical creation into a white elephant. However, these rights have to be paid in order for artists to make a living from their art and continue to produce content. Then, Yann Dib, a young tech entrepreneur from the security industry, had the idea of using Blockchain technology to simplify the distribution of MUUP future revenues.
A quick reminder for the uninitiated. The principle of the blockchain is simple: it is a process of sharing, diffusing and validating data that goes through P2P (peer to peer). This data, whether it is an information, a data or the amount of a sum of money, is therefore duplicated millions of times, on millions of different computers. This makes it almost impossible to forge or falsify. As an example, when you deposit cash at the bank, only the person at the counter at that time has the information, therefore the proof. If you go through a blockchain, the information is multiplied and the proof is virtually in the hands of millions of users. To make money disappear, you would have to change not just one piece of data (your receipt) but millions of data at the exact same time. Theoretically, this is impossible.
Making all Entertainment actors’ life easier
The other interest in sharing information is that everything is automatized: human error has no place in it. Applied to the sale of online content, the blockchain therefore saves considerable amount of time and greatly simplifies management. Motivated by the enthusiasm of the organizers of musical events to whom he spoke, Yann Dib decided to apply the MUUP blockchain technology and generalize it to all market players. From that point, Myrillion was born, even though it will be officially launched on February 1st, 2019. “We quickly realized that our solution was of interest to many people” says Yann Dib. “The distribution of rights is also a headache in sports events; for example, when it comes to paying leagues, image holders and players. The same goes for the movie industry, etc.”. The young entrepreneur has designed his blockchain for the five major entertainment sectors: music, sports, cinema, arts and tourism.
Whether you are a manager of a concierge service, a subscriber to a streaming service or a Real Madrid fan, whether you want to launch a crowdfunding for your next indie theatre production or make a donation to the Bill Gates Foundation and know exactly how your is being spent or whether you want to financially support your next favorite artist in The Voice and allow him to produce his next record, Myrillion offers you a whole range of features and secure solutions to assist you in knowing where everything is going. All you have to do is enter the matrix.
This start-up is not a new Spotify or a new Netflix: it does not seek to compete with existing platforms. It is a facilitator, a hub that brings together entertainment players in a secure and automatic way: users, distributors, rights collectors and content producers. The blockchain, which for greater efficiency will be backed up by a cryptocurrency, the Myrillion (MYL), will automatically operate the redistribution of incomes. In a way that is transparent, immediate, and traceable. The money will flow directly from the user to the actors and will be instantly shared between the artist, his manager, his producer and all the organisms involved. For the public, it is the whole Entertainment industry that is in the grasp of your hands through tokens! For platforms and artists, the whole controversy will soon be a thing of the past.