How Blockchain and AI Could Reshape the Music Industry

By Liam T. Wade

The music industry has always been tough on independent musicians. For decades, major labels have dominated the landscape, making it difficult for smaller artists to break through. Streaming platforms promised to change all that, but instead, they’ve brought a new set of problems. While streaming has made music more accessible than ever, it’s come at a cost: the artists themselves are earning less than ever. Fractions of a penny per stream don’t go far, and for many, it’s a losing game.

Now, a mix of emerging technologies—blockchain and artificial intelligence—offers a chance to tip the scales back in favor of the artist. These innovations could give musicians more control over their work, their contracts, and their creativity. But the big question remains: will they actually disrupt the status quo, or will they just become another tool for corporations to exploit?

The Problem With Streaming

Let’s get real: for independent musicians, streaming is a numbers game, and most of us are losing. Platforms like Spotify and Apple Music pay artists an average of $0.003 to $0.005 per stream. To make even a modest income, you’d need millions of streams. Without the backing of a major label or a viral hit, that’s almost impossible.

The big labels hold all the cards. They negotiate deals that tilt streaming revenue in their favor, and their influence extends to the playlists and algorithms that decide what listeners hear. Meanwhile, independent musicians are stuck trying to make their work stand out in a system designed to keep them in the background.

For years, many of us have been told that “exposure” is the trade-off—that the visibility streaming provides is worth the low pay. But here’s the truth: visibility doesn’t pay the rent. Musicians need—and deserve—a better way.

The Realities of Touring

When people argue that musicians should “just make their money touring,” they’re ignoring the realities of life on the road for independent artists. Touring is expensive, especially now. Inflation has pushed up the cost of gas, food, and lodging, yet performance fees for smaller artists have barely budged in decades.

Merchandise, which is often a critical source of income, is also expensive to produce. And while fans want to support their favorite artists, rising costs across the board mean that many can’t afford to buy vinyl, T-shirts, or even tickets, especially when Ticketmaster’s notorious fees often add 20% or more to the price.

Add to this the fact that touring is grueling: long drives, late nights, and little security. Many musicians end up losing money on smaller tours, especially when unforeseen expenses crop up. Touring can be a lifeline, but for most independent artists, it’s far from the lucrative alternative to streaming that people assume it is.

The Blockchain Solution

Enter blockchain, the decentralized digital ledger that’s best known for powering cryptocurrencies like Bitcoin. It’s already being used to help artists bypass traditional gatekeepers. Platforms like Audius let musicians sell their work directly to fans while earning digital tokens that can be converted into real-world currency.

Then there are NFTs (non-fungible tokens), which open up even more opportunities. Take Grimes, for example. She sold $6 million worth of NFTs that paired her music with digital art. Vérité, an independent artist, has also embraced NFTs to release exclusive tracks and connect with fans directly. What makes NFTs exciting is that they allow artists to earn royalties whenever their work is resold—something unheard of in traditional music sales.

The potential doesn’t stop there. Imagine a global copyright database powered by blockchain. Every song’s ownership and usage could be tracked in real time, ensuring that musicians, producers, and collaborators are paid fairly and promptly. It’s a vision of transparency and fairness that feels long overdue.

The Digital Generation’s Moment

Younger generations are already primed for this shift. For them, digital assets feel just as real as physical ones. Think about Fortnite: players spend real money on skins—virtual outfits for their avatars—that they value just as much as their real-world possessions. This is something older generations often struggle to understand. But that’s the way it’s always been: each generation develops new ideas about value and ownership that the last one doesn’t quite get or want to understand.

Blockchain and AI tap directly into this mindset. Smart contracts, for example, automate transactions so that artists and their collaborators get paid instantly. No middlemen, no delays. For digital natives, these tools feel like a natural extension of how they already navigate the world—and they could democratize an industry that’s been locked up by a select few for far too long.

AI’s Role in a Changing Landscape

When AI-generated music first gained traction, I was curious. I played around with it, thinking it might be a new way to explore creative ideas. Vocal emulation seemed especially promising—until I read the fine print. Many of these websites actually claim ownership of your voice when you use them. For me, that was a dealbreaker.

Instead, I’ve found AI to be a brilliant tool for sparking ideas. I use it to brainstorm concepts for songs and even album artwork, but the final product is always mine. For independent musicians working with tight budgets, AI can make a huge difference, allowing you to produce professional-looking visuals or streamline workflows without breaking the bank.

AI’s potential goes even further. Imagine a live show where AI generates real-time visuals that sync perfectly with the music, turning each performance into a unique experience. It could even add layers to your sound—backing vocals, percussion, or harmonies—without needing to hire extra musicians. When used thoughtfully, AI isn’t a threat to human creativity; it’s a tool to make our work even better.

A Glimpse at the Future

The next 10 to 15 years could completely change the music industry. Independent artists might no longer need major labels to thrive. Blockchain could handle contracts, rights management, and distribution, while AI could streamline everything from live production to tax filings.

Picture this: you’re an independent artist managing your entire career with accessible, integrated technology. Your blockchain-based contracts ensure you’re paid fairly for every performance, and your live shows include AI-generated visuals and sounds tailored to the audience in real time. Instead of spending hours on admin, you’re free to focus on making music.

It’s a future where technology doesn’t replace human creativity—it amplifies it. For independent musicians, that future isn’t just exciting; it’s essential.

How You Can Help

If you care about music, there are simple ways to support independent artists right now. One of the best is Bandcamp, where artists receive a much larger share of revenue than they do from streaming. If there’s an artist you love, check if they have a Bandcamp page—you might be surprised at how much of a difference your purchase can make.

For those curious about blockchain, look into platforms like Audius or explore NFTs from your favorite artists. These technologies aren’t just buzzwords; they’re real tools that can help reshape the industry.

Conclusion

The music industry is at a crossroads. Technologies like blockchain and AI hold incredible potential to empower artists and rewrite the rules of a deeply unequal system.

As a musician, I know how much time, energy, and heart goes into creating something that connects with people. That effort deserves more than fractions of a penny. Blockchain and AI aren’t just technological innovations—they’re cultural ones. They represent a chance to shift how we value art and the people who make it.

The future of music doesn’t have to belong to corporations or algorithms. It can belong to the artists who take these tools and make something extraordinary with them. The question is: are we ready to embrace that change?