But what is Choon?
Choon is a possible solution to the music industry’s upside-down revenue distribution. You might not be aware there is a problem with how revenue is distributed in the music industry.
Here’s the Problem
The music industry has faced numerous changes over the years as technology has improved. Gone are the days of stores filled with vinyl albums and cassette tapes. CDs came and have slowly fallen by the wayside, giving way to digital downloads, but even downloads are becoming a thing of the past. The new way forward appears to be streaming music. Whether it be Spotify, Pandora, AppleMusic, or SoundCloud, listeners get what they want, music, whenever they want it, but this comes at a cost to musicians.
Copyright laws and royalty rates are slow to change, and despite market and technology changes, streaming services are legally required to pay 10.5 percent of revenue to master recording rights holders (think record labels and sometimes artists).
Let’s break this down to simple math. The Copyright Royalty Board has set a cost of living adjustment to the rates paid to master recording copyright holders for 2018, with the rate increasing on basis point each to $0.0018 for ad-supported, non-subscription music streaming services; and $0.0023 per performance for paid subscription services. Previously, the rates had been $0.0017 and $0.0022, respectively.
So… let’s say you’re a Spotify premium member, and you stream my single Eyes Are Here on Spotify. You would have to stream the song five times before I make my first penny ($0.0115). At that rate, Eyes Are Here needs to be streamed just about 435 times before it earns its first dollar, almost 4,350 times before earning $10.00 and so on. Fortunately, I completely own my rights; otherwise, I would only receive a percentage of that revenue with the label and publisher receiving the larger share.
Here’s the Solution
Imagine trying to earn a living based on streaming revenue. It is not feasible, and that is where dance DJ and producer Gareth Emery looks to make a change with Choon. Choon is a cryptocurrency-based music platform that simplifies the revenue stream for artists and simultaneously encourages listener-artist interaction. This sounds like a win-win situation.
Choon is opening its beta testing sometime during April 2018, and it seems promising. This seems like a great way to change the music industry, and I see this as an investment in my music that allows me to engage with my fans while cutting out the middle man.
Downside Up, my upcoming dance single, will release exclusively on Choon. I have chatted with Gareth and other artists involved in the beta testing and early adopting in the platform, and the energy and enthusiasm from each of them is exciting. I am excited for all this could mean for artists and fans alike.
What do you think about Choon? Let me know in the comments below, and remember to look for Downside Up and new collaborations by Rez Vidal on Choon.