Once called the "savior of the music industry", the digital streaming landscape has now become an opaque and uneven system overrun by “middlemen”. Independent artists makeup over one-third of all physical and digital music purchases but take home only 12% of the $43 billion in revenue generated annually. While the $43 billion created by music streaming is projected to triple in the coming decade [1], three-quarters of independent artists receive less than $10,000 a year from their music. Fans using these platforms to gain access to their artists' music are charged high monthly fees and create millions in streaming revenue that their artists never see. Fans are then served unrelated advertisements and subjected to data and privacy violations[2]. In response, artists and fans look for new ways to connect, and generate revenue—with this begins the rise of fundraising, "patronizing" subscriptions, social media, and advertising platforms—and once again the entire music community is left out of the share of the billions of dollars they generate lost to multi-platform premiums, misleading predatory marketing, and poor performance promises.
Specifically:
The Solution
The solution is a community-based, user-centric digital music streaming platform powered by blockchain—the New Music Economy.
The first aspect is Daemo's transparent, digital music streaming platform offering artists a higher per-stream payout, tracked by an open-source blockchain-based ledger system for clear artist/fan stream tracking, ensuring clarity, coupled with a user-centric pay model leading to more accuracy, and a higher artist received revenue.
The second aspect is the Daemo LIIT (Listener Invested Interest & Time) token, a token for decentralized peer-to-peer exchange. LIIT compensates listeners for their attention while protecting privacy through anonymized platform profiles. LIIT connects artists, listeners, and advertisers serving relevant ad entertainment, removing privacy and economic costs associated with existing streaming platforms, and ad networks, (e.g. high opaque costs and data violations). Listeners rewarded with LIIT for their attention can now participate and create unique micro-economies inside the Daemo platform. This includes access to artist premium content by exchanging LIIT for merchandise, live/streaming concert tickets, and direct artist access. LIIT also creates economies for community promoters such as streaming radio hosts, playlist creators, music journalists, live venues, and record stores by allowing peer-to-peer, in-app LIIT exchanges that accurately compensate the marketplace for the value they create.
The third aspect is the LIIT ad entertainment payment system which compensates and protects Daemo's listeners, gives verifiable quality conversion to advertisers while providing more revenue-generating opportunities promoting higher revenue to Daemo artists and the wider music community.
Daemo is the new music economy and the future of digital streaming. LIIT, plus user-centric distribution, solve unsustainable payment inequality for artists, creates micro-economies serving the music industry, fixes opaque fan-to-artist premium distribution, provides higher quality conversions to music advertisers while protecting listener privacy which in-turn rewards listeners for their attention who then compensate artists—creating a virtuous cycle of shared revenue.