Decentraland

The Decentralized Autonomous “1,000 True Fan” Organisation

Decentralized ownership registries helped enable digital art’s NFT boom of the past year. Next, blockchain, the distributed ledger technology, will underpin fanbases and the way artists build careers, teams, and engage with industry infrastructure.

Can you put a fanbase on the blockchain? Here’s what it could look like.

Decentralized Autonomous Organisations (DAOs)

If you spend some time in Web3 circles, you will encounter the term DAO. It refers to organisations that utilize blockchains’ distributed nature and (often) smart contract functionality in order to govern themselves.

These organisations are grassroots, meaning that there’s no central leadership and the members of the organisation decide what things they want to incentivize, and what rules they want to create. They allow people to pool funds, govern those funds and use them to coordinate or incentivize communal efforts and contributions. 

At this point there are way too many DAOs to give a comprehensive overview and they come in many forms. For example, Stake Capital’s StakeDAO allows its members to earn stakeholder revenue share for their participation, for instance by supporting the Discovery and Creator nodes Stake Capital runs for the Audius network, a decentralized music streaming platform. Another well-known DAO, with the stated aim to push culture forward, is Friends With Benefits ($FWB) which requires new members to invest into the DAO by buying membership tokens, so that the community is invested in itself (you can read more about how they govern these funds here and what types of things you might expect in the community here). MetaCartel is a community of people that funds “post-hackathon” projects through grants. Decentraland, pictured above, is a game akin to Roblox and Second Life, but is governed by a DAO.

The Mint Fund, which was founded to fund underrepresented creators’ NFT minting costs, aims to become an “artist-owned curation DAO”. Mat Dryhurst (@) suggested a decentralised structure for SoundCloud in 2017, when people feared the company was running out of time (and cash) as it let go a large chunk of its staff. Back then the concept was novel, but it’s quickly becoming mainstream.

There are even tools like Aragon, Colony, and DAOhaus that make it relatively easy to set up a DAO in which the community participates in the ownership and governance of what’s created through the sum of their work, contribution, and participation.

Image via aforementioned Aragon.

The Decentralized Autonomous Artist

Not everyone’s music will drive millions of streams, not everyone is able to tour constantly, not everyone will go viral… but the one strategy that I feel almost any artist can apply is that of building a community of fans that can sustain you (sometimes referred to as “1,000 true fans”). There’s benefits to thinking small.

How can a fan community contribute to an artist’s success? Well, it depends on the artist, but they can financially sustain the artist through various types of patronage, they can amplify what an artist is doing by increasing their reach and leveraging network effects, but there are also other types of contributions that may be framed as collaborations, fan art, or other. In fact, when the community includes the artist and ‘artist team’ (ie. the business roles surrounding an artist), you can disintegrate some of those roles and place the associated activities inside the community through incentive structures.

What if the BTS Army was a DAO allowing people to either purchase or earn $BTS tokens in order to unlock various types of experiences and opportunities that are completely fan-organised? BTS wouldn’t even have to play a role in the DAO, though if what the DAO is doing is sufficiently valuable (which it would be), it may decide to let people trade $BTS tokens for tickets to concerts, livestreams, merch, or NFT collectibles. BTS can then choose to sell those tokens for fiat money (e.g. dollars or won) and cash out or retain $BTS and take a more active role in the DAO (token holders are often rewarded with increased influence in the governance of the DAO, corresponding to the amount of tokens they hold).

Since it can all be logged to a blockchain, much of this experience becomes portable beyond any specific platform, allowing the fanbase to organise itself wherever it prefers. This way experiences can travel beyond the walled gardens of Facebook, Apple, or virtual platforms and into the so-called metaverse in which the DAO and its members own their data and collect the value from it. Work is also being done on making various blockchains more interoperable, so things will be less locked into blockchain ecosystems than they are now.

Instead of communicating with an audience as followers on a social media platform owned by others, you can involve them directly in the organisation of your fan experience in a transparent, open, grassroots way through DAOs. The bonus: community ownership. We’ve seen countless artists open up Discords and other types of communities next to their social media presence – what we’ll see next is the Web3 version of this: decentralized autonomous fan organisations.

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Livestream tech breaking down

We don’t hear about the livestreams that don’t go well so much. However, technology breaks down and breaks down quite often. This can happen to an artist playing a Twitch show for 50 people, but also to Glastonbury and Driift working on one of the biggest livestream events of the year.

Glastonbury’s Live at Worthy Farm event included lots of great artists and a special appearance by The Smile, the new band including Thom Yorke and Jonny Greenwood. Lots of people, who had bought tickets, couldn’t make it into the livestream. The problem was that lots of the unique ticket codes were flagged as invalid. After almost two hours the solution was to remove the paywall to the event. And since the event was live-to-tape instead of actually live, viewers were also able to rewind for example.

Even livestreaming events that received universal praise suffered their share of issues for individual viewers.

And while individual cases can be just that, an individual’s connection that is problematic, lag created by some error on a laptop or phone, etc. the technological problems are always below the surface.

It’s just too busy

The most common trope surrounding the failure of livestreaming is to do with traffic. Servers need to handle a lot of people entering a virtual door and getting their ticket verified. Two major examples come with Justin Bieber‘s New Year’s Eve livestream and Marc Anthony‘s ‘Una Noche’ livestream from 17 April. The former’s livestream overloaded because 1.2 million T-Mobile users showed up having mostly bought their tickets on the last day. The company hosting the livestream, VenewLive isn’t new to big number of visitors having been set up by a combination of HYBE, Universal, and Kiswe. But just like you have to wait at an arena sometimes, so servers can overload due to high demand. Similarly, with Una Noche, demand seemed to outstretch capacity. In a great article in Billboard, there are two stories: 1) again, lots of people bought tickets at the last moment causing server undercapacity; 2) too many people used the same codes causing the system to crash. Either way, it has led the livestream platform Maestro to change its policy and only host shows that run through their own ticketing platform.

The fix

There’s an easy answer to this problem: a cap on tickets sold. StageIt‘s Stephen White told me that they actively encourage artists and bands to put a maximum amount of tickets per show. This allows for good preparation in terms of what kind of server capacity will allow shows to run smoothly. Of course, it also creates a sense of scarcity. And, indeed, StageIt sees a more even tickets-sold ratio across the period that those tickets are on sale and less last-minute buying then reported for Bieber and Anthony.

Another option is to scale your server capacity, which means you probably have to work with one of the major cloud services such as AWS or Google Cloud. These companies have vast options available to scale server capacity. AWS has an auto-scaling functionality, while Google Cloud allows for automatic load balancing to allow for heavy, unexpected, traffic. The problem here, of course, is that this doesn’t come cheap. The more power and capacity you use, the more you pay. Whether the ticket prices will still cover this is something you want to know in advance and not be faced with last minute or even the day after.

A third option is to use an existing platform that knows how to deal with audiences at scale. Dedicated music livestreaming platforms like VenewLive, StageIt and Maestro – and their are dozens more – are great in terms of offering specific functionalities, such as integrated merch sales, and closed, ticketed, environments. Platforms like YouTube and Twitch already have so much traffic moving through them that any spike from even the largest livestreams won’t impact the overall computational capacity too significantly. They also have other advantages such as different direct payment options, suc as tipping and channel subscriptions. Of course, this is different than buying a ticket, but for artists who aren’t at the level of Marc Anthony or Billie Eilish it might make sense to drive users not to a ticket but to another method of payment. Going back to StageIt, they find that most artists get the highest return not with a set ticket price but with a pay-what-you-can model.

We won’t shake off these issues

I’m a strong believer that livestreaming is here to stay, especially if done well. By that, I mean that the experience of a livestream should be different from that of a gig in a venue. Instead of just pointing cameras at a stage, livestreams should offer viewers a unique experience that feels like it’s made just for them instead of for hundreds of people at once. To achieve this, it makes a lot of sense to use a different platform than YouTube or Twitch, to partner with a provider that makes it their business to create something bespoke. Take to Twitch for a quick and dirty livestream of you or your band in the studio, but make sure to create something with added value if you ask people to pay for a ticket.

The livestream-specific platforms may be more limited in terms of capacity and potentially have other technical limitations. However, these issues will remain as long as livestream. Best thing to do then, is to try and stay in control – as evidenced by Maestro’s reaction to the failed Marc Anthony livestream – and to prepare well. The latter probably means you want to cap your crowd so you know exactly how much server capacity you require. And, finally, let’s make sure we talk about the failures and learn from them. Not all news about livestreams has to be rosy, it’s also okay to tell the world something went wrong.

Does Apple’s lossless streaming move impair fairer subscription prices?

Apple just announced they’ll be launching spatial and lossless audio, at no extra cost, to all Apple Music subscribers starting in June. Seemingly in response, Amazon announced that they’ll be folding their lossless quality tier into the standard Amazon Music subscription tier. Lossless quality music is $9.99 now.

Amazon & Apple are not music companies

Neither Amazon nor Apple need to make money with their music businesses. They utilize these aspects for greater ecosystem tie-in and can afford to use music as a loss leader. Not even considering Apple’s iPhone, App Store or MacBook business… Apple’s revenue for their Airpods equals the revenue of Spotify, Twitter, Snap, and Shopify combined (2019).

AirPods make more money than Spotify, Twitter, Snap, and Shopify combined

Another analyst puts the 2019 revenue for Airpods at $7.5 billion, rather than $12 billion. Still enormous. Airpods are becoming a platform. With its iTunes Store it sought to get more people on the iPod, which created a consumer lock-in that extended to the iPhone and the App Store. Steve Jobs‘ deal terms for iTunes also had a profound effect on the economics of music – laying the foundation for many of today’s discussions.

Unit Sales Out of the Gate (Above Avalon)

Lossless as a loss leader

Unless Apple and Amazon signed some very unique deals with labels, lossless streaming comes at a higher price than standard quality. That means that for now, Apple and Amazon are deciding to eat the cost in order to tie more people into their ecosystems. Amazon was previously criticized for this in 2011, subsidizing Lady Gaga‘s album sales of Born This Way by discounting it to $0.99:

“The digital retailer used the album as a loss leader to promote their Cloud Drive storage service and paid Gaga’s label full wholesale price for each album sold.”

Apple has been taking aim at Spotify since the launch of Apple Music. That started with rhetoric around how human curation is better than algorithms. More recently it took the form of a letter to artists about Apple Music’s royalty rates. Spotify’s antitrust complaints in the EU about Apple’s App Store practices means Apple faces fines as high as $27 billion. Spotify announced they have a lossless tier coming up later this year. Most people assumed this would come at an extra cost. Apple’s decision to use their $200B war chest to eat the cost of lossless quality audio is very much a move against Spotify.

Growing the pie – undermined?

Spotify had the courage to move first and start increasing prices of its existing tiers. Streaming subscription prices have long been stuck at the same price, losing 26% of value due to inflation. The market has become mature enough to raise prices and that’s something that needs to be normalized in a way similar to Netflix’ price hikes.

Cover image for Here’s How Spotify Can Fix Its Songwriter Woes (Hint: It’s All About Pricing)

Apple & Amazon’s strategy puts that at risk. Two questions to ponder: is music currently sustainable with so many companies relying on revenues from streaming services that are making a loss and are subsidized by tech giants or investors? Can this digital music landscape be sustainable without asking consumers for a fairer price?

Music Ally‘s Stuart Dredge has an optimistic take:

“Perhaps hi-res music’s true value in streaming will be to enable the big DSPs to charge all their subscribers another dollar or two a month, rather than just to persuade a small fraction of them to pay five dollars more a month. If that strategy pays off, today’s news will have been a positive moment indeed.”

I’m less optimistic and think that if this was the strategy, they would have paired the news with a price hike. This is about ecosystem tie-in and hitting Spotify where it hurts in a way that’s likely to impair efforts to normalize fairer subscription pricing.

Why Twitter is better positioned for tipping musicians than streaming services like Spotify and SoundCloud

Twitter just launched a new tip jar feature with greater potential for musicians than those launched on popular streaming services such as Spotify and SoundCloud last year.

A new tip jar

Twitter started rolling out its new tip jar functionality last week. The functionality, which for now is only available to a limited group of creators, allows people to add Bandcamp, Cash App, Patreon, PayPal and Venmo to their profiles via a new button on their profiles. It’s a bit like a ‘link in bio’, but specifically for payments.

Why tip jars ‘failed’ on streaming services

Streaming platforms are not creator services. They focus on monetizing the catalogue-listener relation through ads and subscriptions rather than the artist-fan relation. That means the user experience on streaming services is geared towards what people expect in exchange for their payment: quick access to the music they know, new music, and being able to find ‘music for every moment’.

I’m not entirely sure how these services defined success for the donation feature, but especially Spotify needed a PR win over the past year, so I’m interpreting their silence over the feature as an indication that nothing significant is happening through there. As a matter of fact, it seems that in its newly designed desktop profiles, the feature has been quietly removed. For reference, compare Marshmello‘s profile on mobile and the new desktop UI.

Why Twitter is better positioned for tipping

Social media is where people connect to artists. You may listen to dozens of artists per month, even hundreds, but the commitment of a social media follow is something reserved for those you actually care about. Social media is primarily about what’s new and while you can scroll back into someone’s history, it’s a secondary use case when compared to seeing months or years-old ‘content’ appear on playlists.

Through social media, it’s easier than on streaming services to stay connected with people and introduce them to new ways to support you. By creating a Tip Jar that also includes things like Bandcamp and Patreon, Twitter is reducing the distance between a person being interested in something and actually purchasing it. Any friction in that journey causes drop-offs along the way, so any reduction of friction or journey length translates to real money for creators (see also: merch integrations in (live)streaming platforms).

Expect others to follow suit

The type of direct monetization offered through Twitter’s Tip Jar is part of a wider trend that can also be seen in livestreaming services, the surging popularity of Patreon and OnlyFans, Clubhouse‘s tipping feature, and even the donation buttons in music streaming services.

Twitter will not be the last service this year to roll out more monetization options.

Designing the future sound of everyday life: on the first cars and electric vehicles

Sound and silence play large roles in the organisation of social and culture life. How you react to loud music, for example, helps you negotiate your identity. But when were you last confronted with silence? Perhaps when you last saw an electric car you will have noticed the absence of sound, the absence of engine noise. Right now, sound engineers work on shaping how electric vehicles communicate their presence to their surroundings. There’s basically two major lines of thinking:

  1. to replicate the sound of the internal combustion engine
  2. to construct a new sonic palette, a different set of sonic properties, that we will learn to recognize as vehicles in the future

To see how electric cars should sound in the future I will first look back at how the first engineers worked on the inevitable sonic power of the car. I will then look at what experiments engineers and composers at Audi work on to shape the future sound of cars. In both past and future the role of marketing shapes the tensions between car makers and everyday citizens.

The introduction of the car into everyday life

When the first cars started appearing on the roads in the late nineteenth Century, their noise and speed were the most common elements local governments sought to regulate. The very first cars were actually often electric, but the combustion engine soon won out due to cost and availability. The car’s entry into the, mostly, urban spaces around the turn of twentieth century spooked pedestrians and horses alike. To notify other road users drivers had to use a horn:

“The driver has to give a clearly audible signal to approaching traffic and traffic to be overtaken, as well as to people who cross paths with the vehicle in order to make known that he is coming … In the same way, a signal needs to be given at street junctions and at the passing of bridges, gates and narrow streets, when turning into street corners, when coming out of or driving into premises located at public roads, and also at all unclear places and passages.”

Police notice, Düsseldorf (1901)

In other words, even if the vehicle was electric it still had to honk its horn basically all the time. Yet the regulation is understandable as the sound of a horn extended the acoustic horizon of the car. Using it allowed people and horses to adjust to the oncoming vehicle even if it was still out of sight.

That horses were such an important part of this discussion was because they featured so prominently in the streets around the turn of the twentieth century. Moreover, there was no scientific method for measuring sound yet – the decibel’s introduction came in 1925. If a horse shied away from the car and its sounds those sounds became noise.

The first ‘silent’ combustion engine

Horse owners tried to accustom their horses to early motoring by bringing them out purposefully during, for example, a celebratory tour in England in 1900. However, car makers saw opportunities to differentiate themselves with quiet engines. One correspondent for The Lancet in 1900 noted that:

“the petroleumdriven motor cars are still noisy, yet earnest attempts have evidently been made to remove this reproach.”

‘Celebration of the Four Year Anniversary of the “Locomotives on Highways” Act,’ The Lancet, 17 November 1900

Just a few years later, Daimler-Knight put out the first engine that they marketed as being ‘silent.’ It did this by removing lots of parts from the engine and adding sleeves around the cylinders.

Autocar Handbook, 9th edition

Of course, to our ears now this engine doesn’t sound silent at all.

The sound in the early twentieth century would have been muffled a bit more by virtue of it being covered by a hood, but that’s not a ‘silent’ engine. More interesting than the actual sound, however, is that both engineers and marketeers had an interest to create cars as quiet participants in a modernising everyday life. ‘Silence’ was both a product and a marketable feature.

The electric vehicle and the sound of the future

The electric vehicle is making a big comeback, mainly supported by narratives of sustainability. Unlike 130 years ago, however, our current everyday life is often shaped by the sounds of cars and their combustion engines. By comparison electric vehicles are quiet threats that nobody hears coming. The Knight engine in 1908 signaled a new era where car makers focused on making their vehicles quiet companions for pedestrians and horses. Conversely, car makers now face questions about how to create audible companions for other street users. Not only, then, is this a question of how electric cars can sound, but also how our streetscapes can sound.

To prevent, for example, visually impaired people to step in front of a quiet electric car, the European Commission mandated use of what’s called the Acoustic Vehicle Alerting System. The thinking behind this system is that cars should increase noise when they speed up and give off warning signs in the form of noises [think a car driving backwards and beeping] when going slower than 20km [14 miles] per hour. This is often done by mimicking the sounds of cars as we’re used to them.

Renzo Vitale, Hans Zimmer & Audi

But there’s another way to adhere to these regulations and in the process reshape our soundscapes. Instead of focusing on the sounds of the combustion engine as we know them, there’s an opportunity for composers and audio engineers to think about the effects of the car and its sound on our everyday environments. Just like Daimler-Knight made silence into a marketable feature for cars, Audio is making composed sound a marketable feature. One of the main audio engineers involved is Renzo Vitale and he explained the thinking behind it in a TED talk.

The key aspect to take away from this talk is that he sees the car as a sonic organism which has to bring its own auditory properties into contact with the broader soundscape. This research eventually led Vitale and Audi to work together with composer Hans Zimmer on the sounds for the Audi i4.

It’s important to cut through the marketingspeak of this video, but the actual sound of the car is interesting. Instead of turning towards those well-worn sounds of combustion engines, or even Star Wars podraces, this is musical. The accelerating car reminds me of an orchestra tuning before the conductor comes on stage. The sounds that signal movement, such as starting the car, are brief musical shots instead of beeps. It draws on a very different set of connotations for our brains, much more focused on harmony than those sounds of the combustion engine.

Towards a future soundscape of harmony

Cars will remain a part of the hubbub of everyday life, but the sonic technologies involved in electric vehicles raise questions and provide opportunities to compose our auditory lives. What would it mean to start composing our soundscapes more like symphonies? Will that create more harmonic living environments in which all the various elements work together as sonic textures like violins and horns in an orchestra? As long as it doesn’t become a cacophony of individuality but something put together with an overarching score it might just be a very pleasant future to listen to and dwell in.