The British artist, Imogen Heap, who released her song, Endnotes Tiny Human, using the blockchain, explains that the 1. “ Grammy Winner Imogen Heap: Blockchain Tech Can technology enables rules to be included that set out how Empower Artists”, Yessi Perez, CoinDesk, December 2015. and where the music could be used – putting artists in See also: http://www.coindesk.com/grammy-award- 6 nominee-touts-benefits-of-blockchain-tech/ control of their content. 2. V alue of the global entertainment and media market from 2015 to 2019 from Statista, December 2015. See also: A number of start-ups are beginning to explore this space. http://www.statista.com/statistics/237749/value-of-the- Ascribe, for instance, is a company using blockchain global-entertainment-and-media-market/ technology and machine learning – a form of artificial 3. “ Can we be persuaded to pay for online news?”, Rory Cellan-Jones, BBC News, November 2015. See also: http:// intelligence – to ensure artists and content producers are www.bbc.co.uk/news/technology-34943524 7 4. “ Using the Blockchain to Reinvent the Music Business”, being paid fees for the use of their intellectual property. Matthew Ingram, Fortune, November 2015. See also: Ujo is a service that uses Ethereum’s blockchain platform to http://fortune.com/2015/11/27/blockchain-music/ allow musicians and other artists to record and publish rules 5. “ Transparency issues in the music industry could be solved on how they want their music to be used, which aims to by blockchain technology”, B. Holmes, Brave NewCoin, solve global royalty payment and licensing problems across November 2015. See also: http://bravenewcoin.com/news/ transparency-issues-in-the-music-industry-to-be-solved-by- 8 blockchain-technology/ the industry. And Bittunes is using blockchain technology 9 6. Ibid. to help independent artists flourish. 7. “ Three Startups Trying to Transform the Music Industry Using the Blockchain”, Bitcoin Magazine, November 2015. Implications See also: https://Bitcoinmagazine.com/articles/three- Widespread adoption of blockchain platforms could trigger startups-trying-to-transform-the-music-industry-using-the- a new wave of transformation in the music business yet blockchain-1447444594 8. Ibid. remain compatible with contemporary models of digital 9. Ibid. music distribution, such as downloads and streaming. From the consumers’ perspective, very little would change, potentially, except that a blockchain would ensure that Contact copyright theft and illegal file-sharing become all but Alexander Shelkovnikov Corporate Venturing and Blockchain Lead impossible. The main shift, though, occurs in the way +44 (0) 20 7303 8895 that artists are able to manage their intellectual property, [email protected] ensuring that the way their content is used and paid for is controlled. For music labels and licensing bodies, there is an opportunity to be on the leading edge of change by working with artists and distributors to establish new standards and ways of working that reach right across the industry. A common blockchain platform, employing identity management and smart contracts, locks in rules for how revenue flows from consumer to artist every time a piece of content is played or streamed, reducing the costs associated with collecting and managing statistics, maintaining copyright databases and distributing royalty payments. It could also enable new business models, such as micropayments, being considered elsewhere in the media industry. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms. Deloitte LLP is the United Kingdom member firm of DTTL. This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Deloitte LLP would be pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances. Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication. © 2016 Deloitte LLP. All rights reserved. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 2 New Street Square, London EC4A 3BZ, United Kingdom. Tel: +44 (0) 20 7936 3000 Fax: +44 (0) 20 7583 1198. Designed and produced by The Creative Studio at Deloitte, London. J3980 J3975_BlockchainInsert.indd 8 15/01/2016 17:00