# Problem & Solution

<figure><img src="https://805416839-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FQQHX5EtEcggwAsmNLEiR%2Fuploads%2F9fiCoI4CI4OBGeM9q8R7%2FSlide%2016_9%20-%203.png?alt=media&#x26;token=0d8a26ef-cb41-42a5-9f3a-1e175c56e4ef" alt=""><figcaption></figcaption></figure>

The traditional music industry suffers from inefficiencies that limit accessibility, monetization, and creative freedom. HAiO leverages AI and blockchain technology to build a Web3 ecosystem where more stakeholders can actively participate and be rewarded.

***

#### **1. High Barriers to Music Creation**

* **Problem:** Creating high-quality music typically requires professional skills, expensive production tools, and an understanding of complex copyright agreements.
* **HAiO’s Solution:** HAiO’s AI agents automatically generate music based on user data and support real-time tagging, making it easy for anyone to create and use music without technical or legal hurdles.

***

#### **2. Copyright and Licensing Complexity**

* **Problem:** Traditional licensing models are restrictive, making it difficult for independent creators to legally remix or reuse content and monetize their work.
* **HAiO’s Solution:** Music generated by HAiO’s AI comes with clear co-ownership and an automated royalty distribution system. All usage and revenue sharing are transparently handled via blockchain.

***

#### **3. Lack of Participation-Based Revenue Models**

* **Problem:** Most streaming services only reward direct streams, neglecting other forms of contribution such as playlist curation or social engagement.
* **HAiO’s Solution:** HAiO offers multiple revenue streams for contributors, including channel management, playlist creation, and social interactions. It provides participation-based rewards that go beyond traditional streaming payouts.

***

#### **4. Fragmented Music IP & Transmedia Integration**

* **Problem:** The music industry lacks effective systems to integrate music into transmedia experiences such as games, virtual worlds, and interactive entertainment.
* **HAiO’s Solution:** HAiO enables seamless integration of AI agents and generated content into metaverse platforms, NFT marketplaces, and gaming ecosystems, while ensuring transparent revenue sharing through blockchain.

\\
