Over the course of its history, the music business has undergone a great deal of disruption and change. The act of listening to music has taken several forms over the course of human history, beginning with phonograph records, tapes, compact cassettes, track tapes, and compact discs in the 20th century and progressing to downloadable streaming platforms (DSPs) in the early 2000s. Now that DSPs have taken over the music industry, artists aren't making as much money despite the fact that listening to music is more convenient and less expensive for fans than ever before. The majority of musicians still do not make enough money from their music, with tours, merchandise sales, and partnership deals bringing in the most money (TVs, video games, and radio stations). This raises the question: might it be that it's time for us to get another upgrade? We certainly think so, and here is where non-fungible tokens (NFTs) come into play.
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NFTs are one-of-a-kind assets that may be kept and traded on a blockchain. They are rare, cannot be changed, and maybe independently verified by the public. In the field of music, artists have the opportunity to offer restricted digital content to their followers, who then pay for it using cryptocurrency. You are now able to create any musical material that cannot be copied by anybody else.
Even though there are no predetermined guidelines for the collaboration, there are a few different ways that established musicians have utilized NFTs that up-and-coming musicians may use as a model. These are the following:
In February, the well-known American singer known as 3LAU made a profit of almost $11 million from the sale of his tokenized record. Even if this sale volume could be an exception, other artists might learn from the move and apply it to their own work. On-chain sales of limited quantities of your record have the potential to provide exclusive material in an imaginative manner. In addition to this, artists receive a percentage of the proceeds from the sale of any secondary NFTs.
Now, producers may sell beats directly to customers as music NFTs, which was previously impossible. End-users can make seamless use of these beats after purchasing them on-chain thanks to the immutability of NFTs, or they can hang onto them to make a profit by reselling them. Music creators are eligible to receive a royalty payment for each subsequent sale of their work.
It is possible to bring either virtual or tangible merchandise onto the chain. They are available for purchase and resale by anybody. And, as is customary, artists receive a portion of the proceeds from any and all secondary sales.
One further manner in which non-fungible tokens (NFTs) might be beneficial to the music business is the following: Imagine you sold twenty percent of the rights to your future record as non-financial tokens (NFTs). This indicates that in addition to on-chain revenue, fans who possess NFTs are eligible to earn a piece of the off-chain money earned from your music. Some examples of off-chain revenue generation include streaming services, television collaborations, and merchandise sales. Imagine it as a tokenized stock certificate that proves ownership of the record and confers ownership rights. In this manner, you may develop an ecosystem around your work, which will benefit not just you but also the devoted admirers you have. In addition, holders are granted access to a variety of unique attractions, including front-table rows, exclusive performances, listening parties, and other such events.
Artists may become platforms in and of themselves. NFTs enable artists, particularly up-and-coming ones, to develop an environment that enables true fans to buy into their market. This is especially beneficial for the artists.
Creators have complete control over their work while using NFT. The ability for any budding artist to publish their work on chain confers greater autonomy on that artist and frees them from the constraints of disadvantageous contracts with record labels. In addition, artists won't have to upload their work to centralized streaming services in the hope that they would attract sufficient viewers to make a big profit.
A favorable shift in the music industry that is powered by NFTs might put crypto adoption on the back burner.
Despite the fact that the NFT domain is still relatively young, nothing is known about how labels, music industry techs, and enterprises may advance their status. Despite this, it is quite evident that they possess some promise.
By offering a low-cost NFT platform for music, one of the goals of the company is to link musicians with the true music enthusiasts that support them. Join us right away and start making your own music NFTs with us! To learn more, click here.