Creating a High-Fidelity Music Ecosystem

Utilizing Blockchain to Improve the Nigerian Music Industry

Karam Alhamad, Dzidedi Azumah, Alexis Esi, Mary Ghebremeskal, Alexander Hoang, Francesca Nyakora, Similoluwa Odetola, Bennett Olupo

Yale Jackson Institute for Global Affairs

GLBL 6190 01 (SP23): Reopening and Reimagining Africa

Ambassador Harry Thomas

May 11th, 2023

Introduction

The history of Nigeria mirrors the rise of contemporary Africa today - traditions lost in the aftermath of colonialism reclaimed through the mixture of diasporic and post-colonial efforts. In the form of music, the process created what is considered today as Afrobeats. Music is a central aspect of Nigerian culture, utilized for reasons ranging from entertainment to religious worship (Edet). Fela Aníkúlápó Kuti and King Sunny Ade showed the potential for the global distribution of Nigerian music. The former showed mastery of music with a political message, while the latter showcased a unique sonic landscape more dependent on traditional Yorùbá elements. These two, along with many others, created the foundation for Afrobeats to take the world by storm. Afrobeats opened the door for other genres to gain attention as well (Grass, Stewart). Nigeria’s music scene is flourishing and the globally recognized musicians are no longer merely featured or having their beats used by foreign artists like Drake, Justin Bieber, or Future. Nigerian artists attract the attention. The music scene in Nigeria itself is vibrant and dynamic. From intimate concert halls to venues on the beach built for thousands of listeners, Nigerian artists are taking center stage. To ensure the music scene can sustainably develop and enrich the livelihood of people in the country, Nigeria must innovate to accommodate its talented population. Indigenous Nigerian labels like Marvin Records and Chocolate City and multimedia collectives can orient themselves for the future of the music industry. To effectively create a stable and viable industry, we propose that actors within Nigeria need to: 1) understand the state of Nigerian music, 2) implement blockchain technology for technical support, and 3) analyze the barriers to the implementation and adoption of blockchain in the music industry. In doing so, the music industry stands a chance at overcoming the lack of data optimization that currently threatens it while empowering the creatives whose work has established Afrobeats as a global force. Furthermore, the consumers will potentially enjoy a more music experience that caters to their preferences.


Understanding the State of Nigerian Music

Music has always been a vibrant and dynamic part of the Nigerian cultural landscape. Ngobili 2021 examines the last century of Nigerian music using 4 eras from 1922 to the present day. The majority of the seminal moments in the music industry were precipitated by and reflected the economic and political circumstances in the country. In this way, music has not only been for entertainment but has served as a force for social change. Nigeria became a modern state in 1914 after the British amalgamation of the Northern and Southern protectorates. For a decade after this, the music scene primarily comprised English hymns translated into Yoruba and Yoruba folklore songs until the emergence of "Jùjú music" in the 1930s and Akpala music in the 1940s, alongside other genres throughout the country. However, Nigeria's involvement in World War I and II and several internal challenges of a colonial state interrupted the growth of the music industry. 

After World War II in 1945, Nigeria experienced significant socio-political changes as the country moved towards independence, similar to other colonial African countries. This led to the emergence of a new generation of musicians who were increasingly involved in mainstream social and political activities and gradually developed a decolonized popular music culture. They were influenced by Western popular music genres, military brass bands, and other African artists. During this time, there was an explosion of bands, which loosely referred to any group of musicians playing Western musical instruments. The evolution of highlife music in Nigeria and other West African countries also began. The name "highlife" was reserved for highly placed Africans residing in urban centers, and the music adopted simple European tonality, chords, and instruments such as guitars, brass horns, and bands. The themes of highlife music were often centered around love, mourning, and joy and were performed in local languages, pidgin, or English.

The 1970s-1990s in Nigeria saw the end of the civil war and a liberal period for music marked by a decentralization of popular music along ethnic lines. Highlife music evolved and became concentrated among the Igbos in the East with influences from Congo, Cameroon, and Ghana. The Yorubas in the west embraced the indigenous Jùjú and fuji music— named after the great Fuji Mountain in Japan. Foreign popular genres like pop, rock, disco, reggae, R&B, and hip hop were introduced, and indigenous styles were re-imagined by popular musicians such as Fela Kuti, Majek Fashek, Onyeka Onwenu, and Salawa Abeni, giving rise to Afrocentric genres like Afrobeat, Afropop, Jùjú music, Afro-reggae, and Afro-rock. Also, in the 80s and 90s, Christianity played a significant role in Nigerian music, particularly with the rise of the charismatic and Pentecostal movements, which had large followings among the youth. These movements led to the adaptation of existing popular music styles to the expression of the Christian faith. Some established highlife artists incorporated religious themes into their music, while others converted fully to become music ministers and evangelists. In what seems like a wide departure from this, yy the mid-90s, American hip-hop music had become dominant in the Nigerian music scene, influencing pop culture. Even before the advent of the internet, artists such as Tupac Shakur, Notorious B.I.G., and Snoop Dogg were popular icons among the growing youth demographic and had a significant impact on the Nigerian hip-hop style of the early 2000s.

From the 2000s to the present day, there has been a notable shift in the Nigerian music industry as the country began to embrace its indigenous genres while shedding foreign music styles. This change was fueled by a combination of factors, including new democratic policies, technological advancements, and an economic downturn that discouraged foreign executives. The Nigerian Broadcasting Commission (NBC), established in the 1990s, laid the groundwork for more local content being broadcast on radio and TV, supporting music artists. During this era, the first prominent artists were typically hip-hop boy bands that eventually broke up and became solo artists, while group producers also emerged. Many of these musicians converged in Lagos, the economic epicenter of the nation. Other genres became popular, heralded by homegrown and young musicians who were returning home from the diaspora. Notable differences between this period and previous ones include the adoption of computer technology, which allowed independent artists to record their music relatively inexpensively, as opposed to relying on bands and live performances. However, negative changes like the declining economy saw foreign record labels such as Sony and EMI leaving the country, paving the way for local music entrepreneurs who took over music production and distribution. The new Nigerian style was a fusion of hip-hop, Afrobeat, and other indigenous sounds delivered in a mix of English, pidgin English, or ethnic languages. Although music has evolved significantly since the late 90s, American hip-hop culture continues to influence artists, as seen, for example, in the use of aliases and stage names, in contrast to musicians of previous eras who typically used their given names. Another major factor that has fueled the growth of the industry in recent years is the proliferation of the internet and social media.  These platforms allowed artists to reach larger audiences and establish deeper connections with their fans. Moreover, musicians benefitted from endorsements by multinational brands, further enhancing their visibility and credibility. As a result, pursuing a career in music became a more appealing and feasible option for young individuals, amplifying the industry's boom.

As Afrobeats continues to expand, subgenres have emerged within the Afrobeats scene, displaying the expanding presence and popularity of the genre. Traditional Jùjú music continues to dominate airwaves, while the recent creation of AfroHouse shows the increasing innovation of the next generation. Across the continent, music such as South Africa’s Amapiano has begun to gain global reach outside of the county. 


Implementing Blockchain for Technical Support:
In this section, we delve into key domains where blockchain can offer vital technical support, enriching the overall ecosystem and nurturing a dynamic and prosperous Nigerian music industry. Blockchain “is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network” (IBM). The Nigerian music industry must embrace innovative technologies to sustain its momentum and secure a thriving future. Blockchain promises to transform multiple facets of the industry, ranging from distribution networks to audience engagement by adding fidelity to transactions and data transfer. The digital landscape is expanding alongside the burgeoning music industry, creating more opportunities to get exposed to new music and the chance for artists to thrive off of the content they create. Internet penetration is currently around 50% and will increase drastically (Kemp) (Sasu). More people will be able to listen, and interact, with the content. The consumers will have a more immersive and intimate experience with the artists. Blockchain will create an increasing amount of content creators within a more financially secure ecosystem that bolsters creativity and multimedia integration. The market will also shift as people get trained to use blockchain technology, artists learn to interact with the technology, and content creators gain more control over the financial components of the content they produce.  

The relationship between artists and consumers often has many barriers in place separating the two groups. Consumers are often separated geographically, temporally, and socioeconomically. Geography can be a significant barrier even within the same state. For example, traffic congestion in Lagos already prevents people from traveling relatively short distances, limiting the ability to attend concerts. Utilizing Web3 will minimize physical barriers by allowing people to attend virtual concerts regardless of their location. Millions of people can have a front-row view with balanced acoustics without leaving the comfort of their homes. This can alleviate pressures on the venue, possibly opening up an intimate feel to listeners in person as they have more space to move. The listeners may also be exposed to recherché opportunities like listening parties and exhibitions that are often held at small venues for a select group of people. These niche events can be paired with exclusive merchandise. Fans can purchase Non-Fungible-Tokens (NFTs) as tickets. The consumers can use the NFTs to access more exclusive events, store them as collectibles, or be appreciated purely for the art. It is not a stretch to imagine surrealist art as NFTs will accompany the avant-garde Afrohouse music, bolstering both art forms to create a holistic experience for the end user.  

The use of decentralized autonomous organizations (DAOs) tokens can further interactions between the consumers and the artists. DAOs are organizational structures that run on blockchain technology. DAOs facilitate collaboration and decision-making processes without centralized authority or management. They operate through a set of rules encoded as smart contracts, which enable a transparent and immutable system where stakeholders can interact and participate in the governance of the organization. In the context of the Nigerian music industry, DAOs can be established to create decentralized platforms for artists, producers, and consumers. By replacing traditional centralized structures with a decentralized model, DAOs can democratize the decision-making process, allowing all stakeholders to have a voice and contribute to the growth and development of the industry. DAO tokens allow owners to participate in voting and administration processes. They, like other blockchain currencies, can be distributed through sales, pay-to-listen services, or participation in events. People can then use these tokens to vote for locations of concerts. Combined with the varying distribution methods, artists can employ the tokens to reward their most loyal fanbase, encourage fans to be more involved, or engage new listeners. For example, an artist can allow users to vote on different cities for a tour with the cryptocurrency earned by streaming or purchasing an album. Platforms, like Royal.io, are emerging websites empowering independent artists through these methods. 

Consumers can earn royalties by purchasing portions of the rights to a song. With these purchases, the fans support the artists while receiving payment from royalties as the song gets streamed. Grammy award-winning American rapper, Nas, incentivizes record purchase and fan participation by providing signed vinyls, meet and greets, and VIP tickets to the partial owners (“Invest in”). The longer users listen to the artist on the platform, the more cryptocurrency the listeners earn to use. Smaller artists can raise capital quickly by publishing their music on these sites without needing to turn to a label. They will be able to avoid manipulative contracts with record labels and managers. 

Artists will gain freedom and creativity alongside the consumers. As alluded to earlier, artists can make money directly from their music through the use of smart contracts. The artists can be rewarded for streams or they can sell remix rights, beats, and sample packages as NFTs. They will not need to rely on intermediaries to earn capital for their projects. Open platforms will lead to more artists having the ability to release music. Soundcloud represents a great prototype for these spaces. Musicians belonging to a wide range of talent levels and genres upload songs, beats, and other forms of audio media. The immense range of music shifted the landscape as popular artists continued to find inspiration from the site and lesser-known artists gained a following, allowing them to earn money through touring. However, a shortcoming of the platform is that these artists do not get the compensation they deserve for their work beyond mere exposure.
As the Nigerian music industry embraces the revolutionary potential of blockchain technology, a transformative diffusion of capital is set to occur. This paradigm shift will empower artists to reap greater rewards for their creative endeavors, consequently inspiring a proliferation of artistic expression. This financial liberation will engender a more diverse and eclectic musical landscape, with a myriad of innovative opportunities awaiting exploration.
One such pioneering opportunity lies in the realm of remix rights, beats, artwork, and sample packages Non-Fungible-Tokens (NFTs). By tokenizing these invaluable creative assets, artists can generate novel revenue streams while collaborating with fellow musicians in a secure and transparent environment.
Blockchain and DAOs further offer a wealth of artistic exploration while improving the relationship with consumers. Groundbreaking concepts such as virtual concerts and immersive interactive experiences can be created and bolstered by blockchain. This will herald a new era of artistic growth and diversified expression, breaking the boundaries of traditional music experiences. In this decentralized musical landscape, artist-driven cooperatives may surface as viable alternatives to conventional labels. These cooperatives can harness the power of DAOs and blockchain technology to foster a more equitable distribution of resources and collaborative decision-making among artists and other stakeholders.


Barriers to Blockchain Adoption and Use: 

Adopting blockchain technology in the music industry has the potential to significantly impact the professional lives of artists and listeners alike. However, as is the case with many post-colonial countries in Africa, Nigeria faces a combination of systemic and contemporary obstacles that impede the acceptance of blockchain-based solutions. The lingering effects of colonialism continue to influence Nigeria's political, economic, and social systems, contributing in part to the technological illiteracy and insufficient infrastructure required for blockchain integration. Overcoming this formidable barrier is challenging, yet it presents Nigeria with an unprecedented opportunity for substantial advancement.

The limited understanding of blockchain technology in Nigeria pervades all strata of society and constitutes the primary hindrance to its application within the music industry. Although interest in blockchain is increasing, the nation lacks both the educational foundation and skilled workforce required to support it. Blockchain necessitates proficient personnel in technology and computer science; however, Nigeria experiences a critical deficiency of skilled labor in these sectors. This issue is rooted in the systemic inadequacies of Nigeria's education system, as evidenced by its Human Rights Index Ranking of 163 and the fact that a mere 1% of the population is presently enrolled in post-secondary education (United Nations) (Lawal). Consequently, the deficit of skilled professionals in the IT and software sectors is remarkably pronounced, further widening the chasm between accessible opportunities and competent labor. Historically, education has been a systemic challenge in Nigeria, functioning primarily as an instrument for the cultural assimilation of indigenous populations during the colonial era, with the aim of producing a cadre of civil servants (Enwo-Irem). This approach favored the interests of colonial powers over the holistic development of Nigeria and its citizens. Following independence, Nigeria inherited a disjointed education system, characterized by a lack of cohesion and uniformity. While attempting to recover, the enduring influence of Western education models, coupled with limited resources and political stability, has contributed to Nigeria's ongoing struggle to cultivate a skilled workforce capable of addressing the needs of a contemporary economy, including the adoption of emerging technologies such as blockchain.

This limited awareness not only presents a challenge in the availability of skilled professionals capable of implementing blockchain technology within the music industry but also impacts existing policymakers and artists. In Nigeria's legislative framework, regulations pertaining to blockchain remain scarce (Abdul). The lack of blockchain regulation and intellectual property laws in Nigeria poses a significant barrier to the adoption of blockchain technology by artists and industry stakeholders. In the absence of adequate regulations, it becomes challenging for blockchain-based solutions to guarantee the protection of intellectual property rights—a persistent issue in the Nigerian music industry. Artists, unable to safeguard their intellectual property and secure equitable compensation for their work, are less inclined to adopt blockchain-centric methodologies. This reluctance ultimately impedes the implementation of the technology throughout Nigeria. This challenge is particularly salient in the Nigerian music industry, where piracy is widespread, and artists frequently encounter situations in which their music is illicitly appropriated and redistributed in the market (Nnamani).

The challenges faced by Nigeria in the adoption of blockchain technology for the music industry are not unique to the country but are instead a result of systemic issues stemming from colonialism and globalization. Nigeria's struggle to modernize its infrastructure is a reflection of the broader issues faced by developing countries attempting to keep pace with technological advancements by developed countries who own the majority of the world’s intellectual property and knowledge. Blockchain requires reliable internet connection, robust computing power, secure data storage, and a network of nodes to verify transactions. With Nigeria’s internet penetration rate standing at slightly above half the population (Kemp), Nigeria will continue to rely on foreign powers for technological innovation and adoption in the internet space. This results in a lack of control over the technology Nigeria has access to. 


Conclusion:

In conclusion, the successful adoption of blockchain technology in the music industry demands more than merely technical expertise; it necessitates a fundamental shift in Nigeria's economic and political structures, moving away from its colonial legacy. Concerted efforts by policy leaders are essential to promote higher education in Nigeria that is geared towards addressing the requirements of a modern economy. Educational curricula should begin to emphasize Nigerian values, diverging from the historically Western-centric perspective. Concurrently, Nigeria's government should establish and enforce regulations that accommodate the evolving technological landscape, with a particular focus on intellectual property rights. Lastly, further investment in Nigeria's technological infrastructure, encompassing internet connectivity and computational capacity, is crucial. This will not only facilitate a more educated populace but also enable access to the opportunities presented by blockchain technology, both within and beyond the music industry.

Moreover, it is imperative for Nigerian entrepreneurs to not merely wait for these comprehensive shifts to take place, but instead, proactively engage in testing and exploring blockchain technology. By connecting with successful projects in East Asia and Latin America, which have demonstrated tangible results, Nigerian innovators can glean valuable insights and best practices. These barriers, rather than being viewed solely as obstacles, can also be perceived as potential windows of opportunity. As blockchain technology remains novel and distinctive, Nigerian entrepreneurs have the unique chance to evolve beyond mere technology users into innovative solution creators. By capitalizing on these opportunities, they can position themselves at the forefront of the blockchain revolution and contribute to the growth and development of their nation's economy.

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