The digitization of music in the early 2000s, driven by companies like Apple and Spotify, led to increased accessibility but also created an opaque and unbalanced royalty distribution system, particularly in South Korea. In Korea, business actors receive a disproportionately large share (83.25%) of digital streaming revenue, leaving artists with less than 10%. This has led to calls for a fairer system. Blockchain technology, with its potential for disintermediation and the rise of NFTs, is seen by some as a solution to this problem. However, concerns remain about industry readiness, potential resistance from incumbents, and technological challenges. This study aims to empirically investigate Korean artists' realistic perceptions of blockchain's potential to create new revenue opportunities, addressing this gap in existing research.

The Korean digital music industry's development was significantly shaped by the vertical integration of telecommunication conglomerates, leading to rapid market growth but also creating an imbalance of power favoring business actors over artists. Music streaming services, while providing artists with access to large user pools and brand value, reinforce this imbalance through their control over distribution and royalty shares. The current royalty distribution system is highly skewed towards business actors (music streaming service providers, entertainment firms, distributors), with artists (producers and performers) receiving significantly less than 10% of streaming income. Governmental attempts to revise the system have yielded limited improvements, largely benefiting business actors. Blockchain technology offers a potential solution through disintermediation and the creation of new revenue channels via NFTs. However, previous research primarily focuses on theoretical possibilities and potential challenges, lacking empirical data on stakeholder perspectives.

This study utilizes social representation theory (SRT) combined with a core-periphery analysis to explore Korean artists' perspectives on blockchain's potential. Sixteen Korean artists, primarily independent singer-songwriters and composers with part-time jobs supplementing their music income, were interviewed using a semi-structured approach. The interviews focused on the artists' views on blockchain's potential to reconstruct the royalty distribution system and to provide new opportunities through the NFT market. A content analysis was performed, resulting in 13 identified topics, with an inter-rater reliability of 92.2%. A core-periphery analysis and maximum tree visualization were employed to map the relationships between these topics, revealing the structure of artists' social representations.

The analysis revealed 13 topics representing the social representations of Korean artists regarding blockchain's potential. Three core topics emerged: 'Opportunity,' 'Infeasibility of disintermediation,' and 'Expected benefits.' The study uncovered two contrasting perceptions: expectation of new opportunities and skepticism about the near future. While artists saw blockchain as a potential game-changer, they were also skeptical of immediate transformative change due to the entrenched power structures within the existing system. Key aspects of the findings include: a strong belief that disintermediation requires the participation of influential players (streaming services, government, celebrities); concerns about losing the brand value and user base of current platforms; awareness of the limitations of the current royalty system and the desire for better copyright protection; lack of public awareness and indifference towards the challenges faced by artists; and recognition that the NFT market could exacerbate the existing inequality between established and less-known artists. The visualization of the social representation revealed a complex interplay between these aspects, highlighting both hope and cynicism regarding blockchain’s potential.

The findings highlight the ambivalent perceptions of Korean artists towards blockchain's potential in the music industry. The strong belief in 'Opportunity' is coupled with significant skepticism about the 'Infeasibility of disintermediation' without the cooperation of established players. The current dominance of major platforms, along with the lack of public awareness about artists' struggles, presents major challenges to blockchain adoption. The study’s findings support the idea that blockchain technology alone cannot solve the deeply entrenched issues of the Korean music industry; significant systemic changes and industry cooperation are required. The success of blockchain-based solutions also depends on overcoming the limitations of current platforms and the engagement of influential players and the public.

This study offers valuable insights into the realistic perceptions of Korean artists regarding the potential of blockchain in the music industry. The ambivalent view—hopeful expectation paired with realistic skepticism—underscores the complexities involved in adopting such disruptive technology. Future research should investigate the perspectives of other stakeholders (business actors, copyright institutions) and conduct longitudinal studies to track the evolution of artists' perceptions. Practical implications include the need for collaboration between blockchain startups and established players, as well as government support through deregulation and policy adjustments that encourage innovation and a fairer royalty distribution system. Examining successful international models of royalty system reform could provide valuable lessons.

This study is limited to the Korean context and focuses solely on the perspectives of artists. The findings may not be generalizable to other countries or stakeholders. The cross-sectional nature of the study prevents a comprehensive understanding of the dynamic evolution of perceptions over time. Furthermore, the study’s reliance on self-reported data might introduce biases in the findings.