Musicians gradually enter the music NFT will usher in an explosion?

The music industry is going through a change, and NFTs are at the forefront of this change, with good news of financing in this field:

In June 2021, Opulous, a music copyright NFT platform, announced that it had received $6.5 million in financing;

In August, NFT Records Catalog completed $2.2 million in financing;

In November, Royal, an NFT music platform, received $55 million in Series A financing after its $16 million seed round in August.

In December, Mint Songs, a music NFT marketplace, received $3 million in seed funding.

Therefore, music NFT is very likely to become the next outlet to lead the NFT industry.

What is a music NFT?

Music NFTs are proofs of ownership of unique audio, musical compositions that can be bought or sold.

NFT provides authoritative proof of ownership through blockchain technology with authenticity certification that can be verified at any time. It is stored in distributed ledgers and is difficult to forge. With NFTs, artists can take full ownership of their musical compositions without having to share the proceeds with intermediaries such as music companies or lawyers.

The operating system of the traditional music industry is highly reliant on royalties, but the purchase of a physical record usually involves a single payment to the musician, and if the owner sells it, the royalty holder does not get paid again, making it difficult for most artists Make a living from music alone.

And with the emergence of music NFTs, the industry has the potential to get better. Today, domestic musicians are also coming in.

In March 2021, musician Gao Jiafeng listed a 7-second audio on the NFT trading platform OpenSea, and sold it for nearly 16,000 yuan, firing the first shot of domestic music NFTs.

In May, A Duo released the first NFT digital art music work “WATER KNOW” in China, and auctioned the cover and song’s signature rights for public welfare, with a turnover of 300,000 yuan.

Musicians gradually enter the music NFT will usher in an explosion?

Screenshot of musician Aduo’s Weibo

In August, the 20th anniversary vinyl NFT of Hu Yanbin’s “Monk” was officially released on the QQ music platform, with a unit price of 199 yuan, and 2,001 limited edition vinyls were quickly sold out.

More and more musicians are embracing NFT. From circle consumption to mass consumption, music NFT has become a new commodity normal in the music market.

Compared with traditional streaming media platforms, how does music NFT affect the music industry?

How NFTs are affecting the music industry

economic benefits

Compared with the cost of ordinary listening to music, the price of music NFT is high, which is very attractive to independent musicians.

On Spotify, the average “per play” pays the artist $0.003 to $0.005, which is equivalent to only $3,000 to $5,000 for 1 million plays, while in the field of music NFTs, music digital artworks can easily be sold for several dollars. Ten thousand U.S. dollars.

From the point of view of ordinary listeners, this price is certainly very expensive. In fact, music NFTs are not trading the right to listen to songs, but the ownership of unique digital collectibles, which is of great significance to fans or art-loving buyers.

Cut out the middleman

Musicians typically earn money through contracts with record labels or streaming platforms, either way, music NFTs allow musicians to sell music directly to users.

Additional benefits

In addition to trading the ownership of digital collectibles, music NFTs often have other “easter eggs” attached.

On the one hand, the buyer can use the music NFT as an equity investment, and the artist will give up part of the song ownership, so that the buyer can get the actual investment income.

On the other hand, artists can also add benefits to music NFTs, such as concert tickets or physical products, which will give users an unforgettable experience.

Provide opportunities for new artists

The threshold for music NFTs is low, which is a good opportunity for new musicians to allow their works to be seen by more people and stimulate their creative enthusiasm.

Will music NFTs explode in 2022?

In the era of streaming media, it is common for 90% of traffic to be monopolized by the top 1% of musicians. Even well-known musicians’ albums will only earn a few hundred dollars in 2020 after millions of hits. Artists pay a premium for expensive recording equipment.

The emergence of music NFTs has changed the difficult situation faced by most musicians in the era of streaming media. Under the general trend of NFT, the growth space of music NFT is worth looking forward to.

As of 2021, China’s digital music market will reach US$12 billion, but this is only 9% of the global digital music market.

In the music NFT sector, there are currently less than 200 well-documented artists, and the number of albums sold is only over 350, which is only a drop in the bucket compared to the size of the traditional music market.

It can be seen that music NFT has broad market prospects, which may bring more possibilities for the development of the music industry.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/musicians-gradually-enter-the-music-nft-will-usher-in-an-explosion/
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