Blockchain technology is making its way into a variety of industries. It’s not just for the financial world anymore.
This week, Spotify announced its acquisition of blockchain startup Mediachain Labs. In this new venture together, the Mediachain Labs team will work to better connect artists and rights holders with Spotify-hosted music tracks.
With Mediachain Labs’ development of a decentralized peer-to-peer database, attribution engine and cryptocurrency, it was prime for a business transition like this acquisition. Basically, it was using blockchain technology to solve any attribution issues, which benefits Spotify’s licensing issue with the National Music Publishers Association (NMPA) last year.
Apparently, Spotify had not put any mechanical licenses in place, which helps copyright owners maintain control over music distribution and royalty payments. To help alleviate any future music distribution and royalty problems, Spotify paid $25 million total.
With Spotify’s acquisition of Mediachain Labs, the company is hoping to avoid any future questions regarding payments to artists and record labels.