Record streaming music profits highlight how NFTs will empower content creators

According to the International Federation of the Phonographic Industry (IFPI)’s Global Music Report, the music industry’s revenue will reach a record $25.9 billion in 2021, an increase of 18.5% over 2020. Of that nearly $26 billion, streaming drove most of the growth, up 24.3% from 2020. These models are good news for the emerging class of NFT musicians and highlight the need for audio and video content.

Even if the way of streaming changes — from centralized platforms like Spotify to decentralized NFT marketplaces — streaming still exists. The rise of streaming is part of a broader shift in media and entertainment to digital content — print media is rapidly declining. A few years ago, digital media began to replace print media, with a profound impact on the industry. Economists have found that the shift to national digital media is linked to the decline of local newspapers, which partly explains the increased focus and politicization of national topics.

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However, in the emerging Web3 era, we have the opportunity to do something different. Now, we’re starting to see musicians emerging who make and sell NFTs themselves and keep most of the revenue rather than ceding them to record labels or other intermediaries.

building community

Many commenters have pointed out that community building is very important for successful NFT projects.Without a centralized platform to help disseminate content at scale, NFT artists have had to rely on their own networks and personal connections to spread the message. In many ways, this requires a different set of skills than making music, namely many soft skills and some financial savvy — at least enough to know when to say yes or no to an opportunity.

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However, traditional music courses do not teach these skills. Instead, they focus on vocal technique and music history, which are useful to varying degrees but not enough to make one a successful musician. That’s part of what makes record labels and centralized entities so useful—they help fill in what many musicians lack through no fault of their own.

But community building isn’t just a means to ultimately sell NFTs — it’s also a highly interactive and dynamic process that feeds an artist’s underlying art. Unfortunately, the usual centralized model of media and entertainment companies requires musicians to give up not only most of their potential revenue, but also their rights and governance. They can’t even manage their own music without the approval of the controlling entity.

While it may still be acceptable to some, all artists are reluctant to give up this creative autonomy and control — especially when they are not well compensated. Performance artist salaries are expected to see limited growth over the next few years, suggesting that little will change unless we change our current trajectory.

Music was never designed for centralization. Artists create experiences for others to enjoy together. While record labels talk about building community, the answer is obvious — musicians struggle, often not due to a lack of talent, but a lack of financial and business knowledge that keeps their contracts with labels not serving their own interests. Fortunately, we’re seeing decentralized options, including the recently announced MuseDAO. It aims to bring together classical musicians to spearhead local gatherings with the goal of enjoying and developing culture.

Immersive Digital Experience

Cointelegraph’s previous reports have highlighted the financial benefits music NFTs bring to artists through initial sales. We don’t have to wait too long to see the windfall from talented musicians. The most famous is Justin Blau, known by his acting name 3LAU. He is one of the forerunners of music NFTs and successfully launched the “Ultraviolet” NFT album last year.

However, the latest streaming data highlights that music NFTs are increasingly being used in addition to streaming – if streaming growth alone, then we would expect to see steady, not exponential growth. Instead, we see this momentum continuing as consumers look for more audio and video content to consume and enrich their lives in lieu of traditional print media.

NFTs have the potential to open up an exciting new market in the creative economy. If we think of artists—and content creators more broadly—as people who help others build experiences, then NFTs become tools for disseminating and identifying unique artistic content.

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While there is some talk of buying music-related NFTs in the Metaverse – most notably for fashion – imagine if creators came together in the Metaverse to create immersive digital experiences while combining Audio, visual and potentially other forms of content. The creative options are limitless, and NFTs can be used not only to facilitate leisure activities – this immersive experience can also directly contribute to education and training needs.

We’ve seen several related examples, like Arizona State University partnering with Dreamscape Immersive to launch Dreamscape Learn in 2020. As Arizona State University President Michael Crow put it:

“We’ve always known that by combining virtual reality technology with advanced adaptive educational experiences, empowerment at the educational and social level can open up new areas of learning for students.”

The latest streaming revenue and expansion in the music space is good news for all content creators. Data shows that demand outweighs supply, so NFTs and Web3 tools will help creators capitalize on these trends to not only become financially sustainable, but also create more compelling and immersive Metaverse experiences for society as a whole.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/record-streaming-music-profits-highlight-how-nfts-will-empower-content-creators/
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