Paperchain, Centrifuge, Maker Foundation Perform World First, Real-Time Advance of $60,000 USD in Spotify Revenue Using Decentralized Finance
18 September 2019
- At DeFi Summit London, Paperchain and Centrifuge leveraged decentralized finance protocols to advance $60,000 USD in Spotify revenue to a Paperchain record label customer;
- While media consumption has shifted to streaming and on demand models, the revenue and payments process hasn’t changed;
- Revenue from a Spotify stream can take 3 months to reach a record label; 6 months to reach an artist. $100 billion USD sits trapped in 90 day accounts receivables across the wider digital media industry;
- The advance was issued live on stage using Centrifuge’ Tinlake finance application, and was originated in less than 30 minutes at a transaction cost of less than $3 USD;
- Decentralized Finance (DeFi) has the potential to disrupt traditional financing and secured lending products through programmatic, data-driven asset creation, and low origination costs;
London, UK – Paperchain, a music analytics and finance company, and Centrifuge, a decentralized platform to connect the global financial supply chain, has today announced the successful advance of $60,000 USD in Spotify revenue to a Paperchain record label customer.
The customer was paid their August streaming revenue from Spotify 45 days ahead of their usual pay cycle.
The transaction is a world first example in how decentralized finance (DeFi) technologies can unlock the $100 billion in digital media revenue sitting in 90 day accounts receivables around the world. Artists and creators will be able to access their streaming revenue faster without being forced into expensive lines of credit or predatory advance deals.
The transaction was performed live at DeFi Summit London on stage using Centrifuge’s Tinlake finance application and was originated in less than 30 minutes at a transaction cost of less than $3 USD and at an interest rate 80% cheaper than current revenue advancing solutions.
Paperchain co-founder and CEO, Daniel Dewar, said the transaction showed the potential for new financial solutions to solve existing media supply chain challenges. “This is a problem that record labels and artists have been dealing with for decades, and has only been exacerbated by streaming where revenue now pools at the platform level.”
He added, “By pricing the daily streaming data and connecting that to programmatic banking solutions like decentralized finance technology, we can build financial products that get money faster to creators at a fraction of the cost of traditional finance.”
“This pilot is validating our mission and demonstrating how Centrifuge Tinlake can be used by small players in the creative industries to bridge payment gaps. We see the potential in offering financing for a wide range of asset types that can serve the music industry as well,” Lea Schmitt, Product Partnerships Manager said. “We’re thrilled to see how this evolves!”
While the technology is still some ways from full productization, the companies continue to work with their growing customer base to test transactions. For more information, request access at paperchain.io.
The transaction details can be viewed here on Etherscan.
Paperchain provides real-time revenue analytics and payments for the digital music industry. Paperchain lets music companies and artists easily integrate their streaming and digital store data into our analytics application. We price the real-time performance data from Spotify, Apple Music, and other distribution channels, allowing music companies to react to market trends with real-time revenue insights. Using a new model of decentralized finance and programmable banking, Paperchain can advance any portion of that music revenue on demand, allowing record labels, distributors and artists to receive streaming revenue in near real-time. Request access at paperchain.io.
About Centrifuge Tinlake
Centrifuge is a decentralized operating system to power global trade and commerce. Built on public blockchain infrastructure, it enables an open, fair, and transparent Financial Supply Chain. Tinlake is the first Dapp to run on Centrifuge, a platform that enables anyone to draw loans against tokenized real-world assets such as invoices, warehouse receipts, or royalty payments. Find out more about Centrifuge here.
Daniel Dewar, CEO