BITES // 03.10.22 // TODAY’S TOPIC: NFT’S BREAK INTO THE MUSIC INDUSTRY
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1. COACHELLA — THE WILLY WONKA OF FESTIVALS
The golden ticket of festival passes is here! Coachella is offering 10 lifetime NFT passes for those lucky and willing to pay a hefty price tag to get them in time. The Coachella NFT marketplace was built by FTX US. Those lucky enough to score these Coachella NFTs receive two passes to the festival every year along with special perks such as front row access and luxury all exclusive chef’s dinner along with access to virtual content and experiences for life. Coachella will also sell 1,000 NFTs priced at $180 that buyers can use to redeem a physical Coachella photo book. To spread the wealth, even more, they are selling 10,000 NFTs priced at $60 where owners have access to “fan favorite” photos and soundscapes. Coachella dipping into NFTs doesn’t come as a surprise as their parent company AEG made the $700 million deal with the Staples Center to rename the stadium the Crypto.com Arena.
2. NFT ALBUM LAUNCHES ARE A THING NOW
Kings of Leon got their name put back on the map not just for their induction into the Rock & Roll hall of fame but for their NFT album “When You See Yourself”. The band started selling the album tokens back in March priced at $50 where owners got a copy of the album, a piece of art, a gold record, and outtakes. There were also 6 special NFTs that sold for $10,000 each which included lifetime VIP access and a chauffeured ride to one of their shows per tour. Nathan Followill, the band’s drummer, said that they don’t need to rely on the music industry as much with more musical digital platforms available. While it wasn’t a huge financial success it helped to start a ripple effect within the industry with more contemplating needing help from record studios and labels. Akon, a self-proclaimed crypto fan, announced his next album will be released as an NFT only adding to his crypto portfolio along with building his own cryptocurrency based city. Other artists that have been on the NFT train include Emery Kelly, Tory Lanez, Zola Jesus, Imogen Heap, Meek Mill, and more.
3. HITPIECE IS THE NEW NAPSTER & LIMEWIRE
Remember the days of going on Limewire or Napster and downloading your favorite songs for free? Hitpiece sells unique NFTs for song recordings bringing back (possibly illegal) digital downloads. Members can build a playlist of collectible music NFTs, compete for leadership slots, and access unique artist experiences.This is leading to many artists being upset about having their songs be downloaded and bought as NFTs without their permission. According to many artists featured on the site, they don’t have any copyrights or legal access to the songs. Many are questioning the real-life value of the NFTs when there is no affiliation to the artists’. They’ve claimed they are legitimate and “not a scam” but the 404 error page that people have been recently running into says otherwise.
4. ARTISTS LEANING ON NFT’S FOR DISCOVERY AND PROFIT
John Legend is using blockchain to help emerging artists get their big break and launching an NFT platform “OurSong” to help new artists make a profit. Legend hopes that OurSong not only helps these new artists make money but create an engaged, fervent fanbase for musicians. What makes this different from other ways to monetize music is that the digital cards sold will come with special privileges including access to unreleased music and private musician chat rooms. You don’t have to have a crypto wallet to buy the music either which helps expand the number of users and fanbase the artist can have. Digital music service KKBOX CEO Chris Lin, Twitch co-founder Kevin Lin, and Cherubic Ventures founder Matt Cheng are all on board and helping with the launch. Another big name in the industry, Snoop Dogg, is taking Death Row Records virtual, announcing that it will become an NFT label and launch artists on the blockchain.
5. MUSIC AIMS TO GO-GREEN WITH NFT’S
There’s been controversy around the amount of energy bitcoin and crypto use with UK financial site MoneySuperMarket releasing the stat that each Bitcoin transaction consumes 1,173-kilowatt-hours of electricity. That’s the volume of energy that could power the typical American home for six weeks. Warner Music Group is going green and teaming up with OneOf (a Quincy Jones backed NFT company) to create a first-of-its-kind partnership to create eco-friendly NFT’s. WMG having Atlantic and Warner Records under their belt are able to tap into a larger audience with popular pop artists like Ed Sheeran, Dua Lipa, and Lizzo. OneOf has already launched NFT collections with Doja Cat, Alesso, The Game, Chief Keef, Pia Mia, and even the Grammys. The NFT’s on the platform will be 2 million times more energy-efficient than its competition and focused on collectible and generative profile pictures, royalties, and real experiences.
6. ARTISTS ARE PERSONALLY INVESTING IN THEIR OWN NFT’S
More artists are putting their name into the crypto game. Justin Bieber is now part of the Bored Ape Yacht Club. The international pop star dropped $1.31 million for the image of Bored Ape #3001. He is not the only artist and celebrity to join the club, there’s Serena Williams, Gunna, Travis Barker, Stephen Curry, and more. Lil Yachty was on the other end of NTF’s filing a lawsuit against Opulous, an NFT seller, for using his name and likeness for a project launch. Opulous launched music NFTs under Lil Yachty’s name and raised over $6.5 million in VC funds. This shows how NFT’s in the industry can have problems in the music industry, with trademark infringement, unfair competition, and a violation of musicians’ right of publicity. Snoop Dogg has even gotten into crypto with a teaser of the “Snoopverse” in The Sandbox metaverse platform. These are just a few examples of how artists are dealing with their own NFTs outside of their labels and musical endeavors.
TAKEAWAY-
The music industry isn’t taking any risks and is avoiding making the mistake they encountered almost 20 years ago by avoiding digital downloads. We will be seeing more labels, artists, and music festivals leaning into digital currency and downloads to help create a larger sense of ownership, monetary equity, and connection with the music industry. There will also be a focus on making NFTs and crypto more eco-friendly and accessible to more than just a finance-minded audience. This is primetime for brands and advertisers within the music industry to connect with the artists’ fan bases on a more personal and exclusive level.
