Why Web2 Economics Don’t Work for Artists and Writers
Hollywood actors and writers are going on strike, highlighting the fact that the economics of the Web2 platform streaming industry do not work for creative professionals. The COVID pandemic led to a battle for market share among streaming platforms, but now filmmakers, TV series creators, and musicians are struggling to make money. Spotify, the dominant player in music streaming, has never made a profit and artists earn very little per stream. Record labels, on the other hand, have benefited from licensing deals with streaming platforms. Creative professionals must find a way to bypass these gatekeepers and embrace Web3 solutions.
Main Points:
- Web2 platform streaming economics do not work for creative professionals
- Spotify dominates the music streaming market but artists earn very little
- Record labels benefit from licensing deals with streaming platforms
- Creative professionals must find alternatives and embrace Web3 solutions
- NFTs and related technology offer a more creator-centric system
Web3 Provides a New Path for Artists and Creators
Web3 technology and NFTs offer a breakthrough for artists and creators. Unlike the previous internet, NFTs allow for the creation of unique digital assets, fostering a direct peer-to-peer ownership relationship. Rather than focusing on speculative NFT markets, innovators are using NFTs to add value and create a sense of shared interest and ownership for fans. Examples include offering special privileges to NFT holders, using smart contracts to reward fans and creators, and allowing NFT communities to participate in decision-making processes. While not all projects will be successful, Web3 offers a new path for artists and creators, providing space for smaller projects and nurturing a more inclusive industry.
Hot Take: The Current Web2 Economy is Not Working
The strike by Hollywood actors and writers is a clear indication that the economics of the Web2 platform streaming industry do not work for creative professionals. The dominance of streaming platforms like Spotify has left artists earning very little, while record labels benefit from licensing deals. Web3 technology and NFTs offer a new path for artists and creators to bypass these gatekeepers and create a more creator-centric system. By engaging fans and providing direct connections, Web3 allows for smaller projects and a more inclusive industry. It’s time for artists and creators to embrace Web3 solutions and redefine the economics of the creative world.
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