Music NFT is the new hot spot in 2022?

2021 is the year when the NFT market blows out, bringing an unprecedented joint movement for encryption technology, financial markets, and the artist circle. It also pushes the total market value of NFT-related assets to a record high of 42 billion U.S. dollars, and a large number of them have been born at the same time. Familiar NFT projects (Cryptopuk/loot/Art Blocks, etc.) and artists (Beeple/PAK/Rafael Grassetti, etc.).

However, people seem to overlook one of the most valuable branches of the NFT field-music NFT. As a low-key category in 2021, music NFT is considered to be the blockchain technology in promoting the co-creation of intellectual property rights and co-ownership. , The most inspiring touchstone. In addition, the COVID-19 pandemic has almost cut off live commercial performances by musicians, and the out-of-circle of NFT has also allowed independent musicians to see a new way out.

2022 is here, will Music NFT be the new star in this NFT wealth festival? How will music NFT affect the field of digital art?

Music NFT development history

Looking back on 2021, in the development of music NFT, we witnessed the musician Justin Blau (3LAU) raising $11.7 million through the Ultraviolet NFT album auction at the end of February 2021, breaking the industry record, and also witnessing the CryptoPunk rapper. Spottie WIFI made a feat of $190,000 in a few seconds with the help of the community in August 2021.

However, the real outing of Music NFT will start in early February 2021.

At that time, the British-based record company LuckyMe announced that its Canadian electronic music pioneer Jacques Greene was auctioning the publishing rights of its new single “Promise” in the form of NFT, although the bidders could only hear the entire song before the auction. The first 6 seconds of the song, but this auction in cooperation with Foundation still achieved ultimate success, and the work was finally sold for 13 ETH.

After the auction, Jacques Greene said, “I am excited (and afraid) about the possibilities and prospects of the NFT field and the entire art and culture field. I have a lot of hope and fear about this. Instead of sitting together and feeling scared, think about it. And talk about what might happen.” 

When evaluating this auction, Foundation believes, “As we explore the possibilities of on-chain art and the prospects of the Web, we may start to abandon the old system.”

It should be noted that the NFT auction of music by LuckyMe and Foundation even predates Beeple’s “Everydays-The First 5000 Days” auction. Beeple’s auction took place in March 2021. The NFT works were sold at Christie’s auction house. Sold for $69 million.

Since then, in early March last year, Canadian female singer Grimes and her partner Mac Boucher sold a music NFT collection called WarNymph Collection, Vol. 1 through Nifty Gateway for $5.8 million.

The story is far from over. In late March, the British electronic music duo Disclosure sold their music NFT EP The Face for $140,000; in August, it launched the Web3 music platform Audius in 2018 and became the first stream to collaborate with TikTok. Media services; also in August, CryptoPunk rapper Mig Mora (Mig Mora) sold his music NFT works for US$190,000 within a few seconds; at the beginning of November, Universal Music announced the establishment of the Boring Ape Virtual Band Kingship…

The rapid emergence of NFT has allowed musicians trapped in COVID-19 to see new ways of making a living, and it has also given independent musicians the ability to maintain their lives around the concept of digital ownership.

However, you may ask, how exactly does music NFT work?

Let the rights of musicians return

As we all know, the music industry has undergone tremendous morphological changes over the years, from early records, tapes, compressed cassette tapes, audio tapes and CDs to downloadable streaming media platforms that appeared 20 years ago, supporting music lovers to download directly through the Internet. Listening to popular music in the form of music, the art form of music has begun to become diversified.

At present, although streaming media platforms provide music lovers with a large amount of high-quality music, which greatly enriches entertainment activities, music lovers only need a smart phone to be able to listen to most original music for free, which sounds like a piece of cake. The best of both worlds, on the one hand, creators can gather fans in a faster way, on the other hand, music lovers can access more and richer music.

But in fact, this process is not as perfect as it seems, because the profits of art creators cannot be guaranteed at all. They have to rely on touring performances, merchandise sales and brand endorsements to make money, but they can actually get it through this method. There are only a handful of head music producers and singers that make money. According to 2019 and 2020 data, 90% of traffic is monopolized by the top 1% of musicians. However, the emergence of music NFT changed everything.

So how does NFT help musicians get back their own rights?

We know that NFT is an asset that can be stored and traded on the blockchain. It has the characteristics of indivisibility, scarcity, unforgeable and publicly verifiable. With the help of NFT tokens, music will also gain these attributes, and artists can ask Fans sell indivisible digital content for revenue, and can ensure that these music contents are not forged, and can also directly cross the exploitation of streaming media platforms and agency companies to increase revenue.

In general, music NFT will play a role in three aspects.

The first is the album release. American pop music master 3LAU sold his tokenized album for more than $11.6 million in February 2021 is the best example. The success of this sale has also set a good example for other music artists. All music creators can release their music albums in the form of limited copies on the blockchain and then sell them to their fans. In addition, more importantly, music creators can get a revenue commission from each second sale of music NFT albums, which undoubtedly greatly stimulates creators’ creative enthusiasm.

The second is sales of works. Unlike previous sales methods, creators can sell music NFT directly to the community instead of streaming media platforms and brokerage companies. Moreover, creators can still get a share through secondary sales.

Finally, the fragmented distribution of works. This is a new way for NFT to help the music industry to diversify its sales. The way to achieve this is to sell part of the copyright of the upcoming album in the form of NFT, for example, 30%. While the creator gets the sales revenue, fans who hold the music NFT You can profit from the sales revenue generated by the music. Sales channels can include streaming media, TV partners, and adaptations and covers. If the value of the 30% NFT is still too high, the extreme approach is to divide 30% of the album’s shares into 10,000 and sell them to fans, so as to bring income to a wider range of fans. In this way, a benign interactive ecosystem will be formed with music creators as the center, and loyal fans will benefit from it.

Music NFT sounds really good, so is it possible for this format to be successful in 2022?

Will music NFT explode in 2022?

Music NFT’s transformation of profit distribution methods can be said to be an innovation of Web2’s backward distribution methods driven by advanced technology-driven advanced distribution methods.

We know that in the streaming media era, most musicians have a hard time living. Original music creators can only get a few cents per click, while most creators simply cannot find a large number of listeners, so their income is meager. The phenomenon that 90% of traffic is monopolized by the top 1% of artists is commonplace in Web2. Even a well-known artist’s album will only receive a few hundred dollars in revenue in 2020 after millions of clicks, but the artist needs to be expensive. The recording equipment pays high costs.

However, the emergence of NFT seems to be changing this status quo.

The previously mentioned 3LAU earned up to $11.6 million in revenue in one auction, the NFT album of the rock band Kings of Leon earned $2.5 million in revenue, and the music by musician and visual artist Grimes called WarNymphs NFT earned about 7 million U.S. dollars in revenue, and all of this will happen in 2021. Some of them are first-line musicians, and some are not first-line stars.

Under the NFT trend, although the music NFT market is small, the music market is huge, and the room for growth is worth looking forward to.

Previously, when predicting the development of the NFT field in 2022, Cao Yin, the managing director of Digital Renaissance, said that in the Web2 world, the music market is larger than the image market, and in the Web3 world, the music NFT market will be as large as the image NFT.

As of 2021, China’s digital music market alone has reached US$12 billion, which is only 9% of the global digital music market. In the music NFT sector, there are currently less than 200 well-documented artists and only records sold. There are more than 350 copies. Compared with the scale of the traditional music market, it can be described as one of the best.

Therefore, music NFT will gain tremendous growth under the NFT trend.

In addition, Cao Yin also believes in his prediction that the particularity of music consumption habits cannot be ignored. Music NFT sharing is more important than collection, community is more important than personality, the long tail market will dominate, and there will be many music + DAO gameplays. , Such as Web3’s music audition.

The music + DAO gameplay may be a new direction.

In its outlook on the development of music NFT in 2022, Coindesk believes that 2022 may be a crucial year for music NFT. Many agreements and platforms are now online, ready to go online in the music sector. Coindesk also believes that DAO, as a hot topic in the encryption field, must also be included in the scope of observation of music NFT. If you are tired of the same old agents and record companies, DAO can be used as a pioneering alternative to the new music era. This coincides with Cao Yin’s observation.

All in all, in the context of the continuous explosion of NFT and the recognition of digital art by more practitioners and investors, music NFT as a subdivision will surely gain more extensive attention and will also bring more to many original music artists. With large cash benefits, guided by the DAO governance ideas, and with the help of NFT, a more advanced business model of fan sharing revenue will be generated. Music NFT is very likely to break out in 2022.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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