NFTs & The Music Industry
The NFT market is a large one, it is successfully applied in areas such as digital art, games, fashion, fan service, and sports as...
The NFT market is a large one, it is successfully applied in areas such as digital art, games, fashion, fan service, and sports as well as the metaverse.
The music industry is no exception when NFTs Music has been receiving the attention of artists and fans, from young stars like Grimes to rock legends - The Rolling Stones. NFT community believes that NFT has the potential to transform the music industry by making it more democratic and fair, as well as bringing artists and their fans closer together.
This article will explain how the NFT market has impacted the music industry and what its potential growth prospects are.
NFT - A new way for musicians and fans to interact.
Currently, Hundreds of artists and singers have released their own NFT. Can say about Justin Bieber or Grimes. Because of the non-fungible nature of NFTs, it has opened up new avenues for artists to interact with fans. It can be released for anything: a song, album, video, concert tickets, photos, performance rights,...
A real-life example is Canadian singer Grimes, who has sold ten digital artworks and NFT videos, some of which include original songs. Grimes made $5.8 million in less than 20 minutes by selling "Death of the Old." It is also a best-seller and has an asking price of $398,000. A few days later, American DJ Steve Aoki sold 11 NFT videos featuring the DJ's tracks for $4.25 million in collaboration with renowned picture artist Anthony Tudiski.
After all, NFT enables musicians to sell tokens for their songs and provide access to exclusive content or to own the unique opportunities that NFT provides.
A specific example of this is Canadian rapper Tory Lanez, who sold one million copies of his new album in NFT format for $1 each in 57 seconds. NFT holders can participate in virtual meetings with artists and listen to their unreleased music,...
What impact will NFT have on the music industry?
A new way to earn extra income for artists: Music sales are around $42 billion a year, of which less than 12% goes to the artists themselves. Selling albums and tracks no longer generates significant income for musicians, and the majority earn very little from streaming platforms.
NFT is a new source of money for musicians, who can count on the support of loyal fans. So NFT can be extremely profitable.
Ability to share royalties with NFT holders: Smart contracts allow musicians to share a portion of royalties with token holders. This provides artists with an additional source of income when they sell their NFT products, as well as the ability for NFT holders to receive a portion of royalties based on Smart Contracts for each listen to that artist's work on Spotify, Apple Music, or Web3 streaming services like Audios.
New Crowdfunding schemes: Artists can raise funds for unreleased albums, and the owners of those albums can receive future royalties based on Smart Contracts. Such a fundraising scheme turns out to be more profitable for artists than recording on a record label. This also benefits fans, as it allows you to invest in your idol's work.
Minimizing Intermediaries: NFT allows artists to monetize their work without the use of brokers, lowering the artist's costs.
Problems of the music NFT market
NFT music is a new phenomenon in the NFT industry, which, like all others, has regulatory risks. Let's figure it out together.
The NFT industry is still unregulated, and its legal nature is solely based on tokens and Smart Contracts. The ownership of NFTs is not legally protected. As a result, the token holder receives no legal rights upon redemption. This raises the possibility of losing ownership.
Another problem is piracy. NFT holders only get to own the token itself, not the work behind it. Therefore, if the platform declares that it transfers the rights to the song to the token buyer, this does not mean that the transaction is legally valid.
The future of NFT in the music market
Purchasing NFT products to show support for idols is most likely the main reason fans purchase NFT.
For artists, NFTs open up new ways for them to interact with audiences and also open up more ways for them to earn more directly or simply to raise capital for their artists' projects...
But so far, only a fraction of the performers have caught up with the new technology to make its way to the NFTverse. Shortly, as music tokens become more popular, hopefully, we will see them in more use.
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