Cherie Hu of Water & Music discusses the transformative potential of Web3 and AI on creative processes: The Agenda

While curiosity may have led to the demise of the cat, for musicians, it frequently serves as a catalyst for creativity and innovation. The year 2023 witnessed the swift advancement of OpenAI’s robust ChatGPT artificial intelligence tool, alongside technologies such as Midjourney and Dall-E, which have empowered content creators to effectively operate as a solo artist or a one-person production studio.

Keeping up with the rapid technological advancements and their effects on relevant sectors can be daunting for the average busy individual. One of the objectives of Water & Music is to provide a more research-oriented framework for music industry professionals to analyze, discuss, and experiment with emerging technologies.

In Episode 19 of The Agenda podcast, hosts Ray Salmond and Jonathan DeYoung engage with Cherie Hu, the founder of Water & Music — “an independent newsletter and research community dedicated to making the music industry more innovative, collaborative, and transparent.”

Change is unavoidable

When inquired about the latest developments in the music industry, Hu acknowledged that “the traditional music business was largely governed by a select group of gatekeepers,” and she proposed that the pandemic, new technologies, and perhaps some of the principles supporting the Web3 movement would ultimately alter this established order.

“The pandemic, I believe, awakened many individuals,” Hu stated. “It motivated people to be more proactive in voicing their opinions and advocating for the changes they wished to see.” She continued:

“Many of the most essential, deeply critical discussions I’ve encountered regarding streaming have emerged in the past three years, primarily because, due to the pandemic, artists found themselves in a position where they had to depend entirely on digital income sources to survive without touring. They then examined their streaming payments and thought, ‘This is insufficient. I cannot sustain myself on this.’ Consequently, there have been significantly more constructive dialogues surrounding alternative models for monetizing music in a digital environment. Web3, undoubtedly, has played a monumental role in this.”

Traditionally, entering the music industry required artists to either connect with the right individuals to gain traction or to finance their projects in a manner that generated enough buzz to reach a broader audience. Hu contends that within the conventional music industry, “many of those mechanisms have remained unchanged for the last 10, 20, or even 30 years,” but she also recognizes that new technologies have introduced fresh avenues for creators to bypass the traditional route to success.

Hu remarked:

“The direction in which culture is heading, particularly when observing apps like TikTok and the influence that ecosystem has on music culture and which songs gain popularity, is incredibly rapid. The unfortunate aspect of the music industry is that the financing component has not kept pace with it.”

According to Hu, Water & Music aims to adopt a more analytical perspective on how the music business is transforming and being influenced by emerging technologies.

“When we consider the new music business, we certainly emphasize new technologies that allow individuals to engage in the music industry. This includes creating music, marketing it, building communities around it, and monetizing it in entirely new ways. We are interested in that entire spectrum.”

Related: 5 AI trends to anticipate in 2023 and beyond

Web3 concepts and practices may become integral to the music industry

Blockchain-based gaming, non-fungible token collections, and other Web3 trends were highly popular in 2020 and 2021 when the broader crypto market was experiencing a bull run. However, host Salmond questioned the current relevance of these strategies, particularly within the music sector.

Hu clarified that in gaming, there are presently “more opportunities for creating experiences than for monetizing them and establishing a business from them. I would assert that this aspect remains absent and continues to pose challenges for many independent artists.”

The infrastructure, time, and overhead necessary to develop entire worlds is labor-intensive and not necessarily proven to be sustainable, except for major gaming platforms like Roblox. Hu indicated that a more practical opportunity for artists might lie in sync licensing. She explained:

“Sync, or synchronization, licensing refers to the music industry term for licensing music for any type of audio-visual multimedia experience, such as a film, podcast, or game. There are actually numerous mobile games, particularly, which I believe is one of the more underexplored areas of music and gaming collaborations. While one typically thinks of large games like League of Legends or Fortnite, there are many emerging mobile games, especially those centered around music, that are seeking partnerships with the music industry.”

To learn more from Hu’s discussion with The Agenda — including her detailed explanation of how subscribers have benefited from the research published by Water & Music — listen to the complete episode on Cointelegraph’s Podcasts page, Apple Podcasts, or Spotify. Additionally, be sure to explore Cointelegraph’s full array of other shows!

Related: AI music causing traditional industry to enter ‘panic,’ states new AI music platform CEO

This article is intended for general informational purposes and should not be construed as legal or investment advice. The views, thoughts, and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.