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Jay-Z and Jack Dorsey both underlined the advantages that smart contracts and NFTs may provide to musicians.
Jay-Z and Jack Dorsey have suggested that their music streaming service, Tidal, may be looking into nonfungible tokens (NFTs) and smart contracts integrations.
During a Twitter Spaces conference on June 28, the duo stressed the necessity of adding features that empower the artists who use the network, mentioning smart contracts, NFTs, and analytics tools as examples.
Despite Tidal lagging behind top music streaming services — Tidal’s $166 million revenue in 2019 paled in comparison to Apple’s $2.8 billion and Spotify’s $7.44 billion in the same year — Dorsey and Jay-Z believe they can capture significant market share by using blockchain technologies to provide empowering tools to artists.
“What really dawned on me was how weak some of the toolsets are for artists, with analytics and data, to understand what they’re doing and help them inform their decisions, especially considering other revenue streams like merchandise and touring and NFTs,” Dorsey said.
“We want to open up all the information tools and simplify it for anyone — anyone can come onto the platform and create,” he added.
Dorsey discussed the potential of adding revenue streams such as NFTs, with the Square and Twitter CEO stating that anythin that can help artists “shine” is up for discussion:
“The spirit of what NFTs represent, the spirit of just looking critically at how artists are compensated, and of proving that, is something that we want to spend a lot of time and a lot of our focus on going forward.”
Jay-Z spoke on the possibility of smart contracts to provide artists with greater financial liberty, saying, “There are so many creative ways you can participate, and let others participate.” And it’s documented there, so it’s extremely transparent; there’s no hiding behind fancy phrases or attorneys, for example.”
“With these blockchains and these smart contracts, you can write the contract today to say, any sale that happens, I want to receive 10% or 30%. Or you can write it out: 50% on the first one, 40% on the next.”
Square Inc acquired a $300 million majority ownership stake in Tidal back in March. As part of the agreement, Tidal acts as an independent business within Square, with existing shareholders remaining as stakeholders.
Back in 2015, Jay-Z and a group of other musicians, including Beyonce and Kanye West, paid $56 million for the site. Jay-Z is also a member of Square’s board of directors and a Tidal shareholder.
Jay-Z is now embroiled in a legal dispute with Damon Dash, co-founder of Roc-A-Fella Records, who is accused of attempting an NFT sale showing a tokenized version of Jay-debut Z’s album “Reasonable Doubt” alongside rights to the record’s copyright.
A New York judge froze the sale after RAF filed a complaint on June 18, asserting that Dash breached his fiduciary duty by attempting the NFT auction, as the album is owned solely by the company.
However, Dash has denied the claims, stating that he was only trying to sell his stake in the company.