How NFT’s Can Help the Music Industry
Giving power back to the artists
The music industry has been providing entertainment to people for decades. As technology has advanced, fans have had more options and accessibility to listen to their favorite artists. Even with all the improvements, musicians today face many issues. NFTs can help solve some of these.
Issues in the industry
One issue in the music industry is that most artists do not get a large share of the revenue from their music. Revenue has to be spread out to all participants, which can include record labels, managers, distributors, promotors, public relation companies, producers, songwriters, sound engineers, and more.
Another reason that artists do not make much money from their music is the many different royalty contracts between artists and the before mentioned contributors.
For each revenue-generating stream, certain contributors get a certain percentage of profits. One of the main streams of revenue for artists is physical sales; which could be vinyl, cassette tapes, or more recently, CDs. Artists typically only receive 13–20% of revenue from physical sales.
In recent years, consumption of music has gone digital via streaming, with applications such as Spotify or Apple Music. On average…
