Ditto to Roll Out Blockchain App for Managing Music Royalty Payments
Ditto Music intends to roll out Bluebox, a blockchain documenting technology that could turn out to be a blessing to both distributors and musicians.
The issue, states Ditto Music CEO Lee Parsons, is that wrongly placed meta data could easily affect the profitability.
In recent past, Ditto transferred £60,000 pounds ($80,000) in royalty payment to an artist by mistake.
This eventually resulted in Parsons paying the right artist from his own personal income.
The arrival of Bluebox will permit artists to resolve legal issues, including publishing, copyright registration and mechanical royalties.
The application documents music along with legally enforceable smart contracts coded to protect ownership rights.
Parson stated “There’s billions of dollars of unclaimed royalties out there,” Parson said. The blockchain can help millions of artists claim what is rightfully theirs.”
Ditto Music, which sent out roughly $100 million in royalties in 2019, deals with about 250,000 artists including Sam Smith, Ed Sheeran and Royal Blood.
Bluebox is structured to divide royalty payments for the lifetime of a record and precisely documents payments on the blockchain.
Parsons asserts that the system ensures better transparency and extensive reporting, leading to likely higher revenue generation from digital services.
Ditto claims to achieve “higher collection rates [while] massively reducing the loss of earnings currently experienced by artists.”