How NFTs Are Expected to Change the Music Industry
Non Fungible Tokens provide an excellent opportunity for many industries, and music is one of those. Emerging artists and their relationship with their community can now fund new projects and artists’ careers. Now fans feel they can directly support artists without the record labels stifling the artistic process. With fans investing in their favorite artists, blockchain technology can completely change how music is created, funded, and promoted. That’s why NFTs have the potential to democratize the music industry seriously.
Can artists make money on Music NFTs?
They can! By investing in music NFTs, fans not only obtain a unique representation (token) of a song from their idols, but they can also receive money from the NFT sale. It’s not a shock to anyone that the record labels wind up taking creative directions for the artists, which is why so many artists are already turning to NFTs to go independent.
Take Swedish artist Danny Saucedo for instance. After leaving Sony music, he released several singles on his own with the support of his fan base and took full ownership of his music career to become fully independent.
You can go beyond music NFTs. You can offer your followers exclusive benefits: of course, these vary depending on what the artist is about and has to offer when engaging with their communities.
Let’s take Kings of Leon, for example. They sold their NFTs to their last album, “When you see yourself,” and added exclusive front-row seating arrangements with the album NFTs.
Another benefit that this creator economy is that artists can earn more than they would on, streaming platforms by using NFTs. Since artists receive transactions directly from their fans, they get to keep most of the profits. This leaves gatekeepers like record labels and streaming platforms to the side. NFTs are an alternative for new artists struggling to fund their careers.
How do music NFTs add value to the music industry?
Music NFTs are practically digital certificates of ownership. They represent the original copy of a song and can be re-sold just like vinyl. Since ownership rights can be traced on the blockchain, creators can (potentially) earn royalties every time the NFT is purchased. That’s how NFTs help composers, bands, and musicians interact and connect in different ways with their followers.
In essence, the original recording of a musical piece is non-fungible, but its copies are fungible. Don’t forget that storing music on the blockchain comes at the price of gas fees. Regardless, NFTs are opening a transformation to the music industry but, most notably, to the music business.
How can NFTs change the music industry?
NFTs won’t replace music labels –at least not soon. Nevertheless, having other possibilities for artists to promote artistic output can change the way music is produced, distributed, and, probably, consumed. This means that all the intermediaries in the music industry would have to review their business practices; Then again, isn’t that the goal for blockchain technologies?
Regardless of whether it’s on-chain or off-chain, the artistic game still remains a matter of taste, and the success of an artistic project –however you’d like to define it– relies on the craft, the work, and the connection with the fans.
Selling music through the blockchain can be a way for artists to directly relate to their fans, avoiding all types of intermediaries. They can engage with their audience, have a closer, more direct relationship with their idols, and participate in their artistic process.
What about the streaming platforms?
The interaction between blockchains and artist funding doesn’t mean that other listeners can’t enjoy the song or tracks of their favorite artist. In many cases, artists sell the rights to their singles but can still be heard on streaming services. Otherwise, only a small number of people would get to know the songs. Jacques Greene, for instance, sold the exclusive rights to his new single “Promise” for the sum of U$D 20.000, but it’s still heard on streaming services.
Other artists who sold their NFTs include Linkin Park, Snoop Dog, DJ 3LAU, and now Kanye West. In fact, DJ 3LAU opened a marketplace on his website after selling almost U$D 4 million on NFTs. Even iconic legends like Whitney Houston made their way into NFTs.
Examples of NFT Music
There are plenty of examples in the music market of how NFTs can be used in music. Check out the following:
Kings of Leon
This rock band was a pioneer in the NFT music industry. They sold limited edition digital copies of their album as NFTs. The album “When you see yourself” came together with collectible vinyl records and offered special benefits for fans such as life-long front row tickets. The NFT album collected around U$D2.5 million in sales.
Unreleased Whitney Houston demo track
One of One NFT, Whitney Houston`s unreleased demo, was auctioned in December 2021. The demo the singer recorded when she was just seventeen sold at the incredible sum of U$D 999.999. The buyer received full personal use of the tack, thus forbidding public distribution.
Grimes
This NFT called WarNymphs was a collection of digitally created videos and art in music. One of the NFTs of the collection, “Death of the old,” was sold for U$D 389000. Not a small sum, considering the U$D 7 million collected by the whole NFT project.
3LAU
Known as 3LAU on stage, DJ Justin Blau released the first NFT album “Ultraviolet,” collecting U$D 11.6 million in sales. Quite a considerable sum if we consider the small number of followers and the 33 NFT Vinyl records auctioned.
Final Thoughts
NFTs are shifting the conversation in the music industry. New and more established artists are embarking on NFTs and enjoying the benefits they can obtain. On the other hand, music fans are finding new ways to connect with their idols and receive benefits along the way.
Co-creation and co-ownership through the blockchain are paving a new way to create think of the music industry, and what’s more, a true music revolution is taking place and it includes technology that empowers the artists and not the gatekeepers.
