User market, application value and overseas practice of music NFT behind TME’s entry

Guide

In March of this year, the NFT work “Everydays: The First 5000 Days” by encryption artist Beeple was sold at Christie’s auction for $60.25 million, making the concept of NFT more visible.

NFT stands for “non-homogeneous currency”, which is an encapsulation of the application of blockchain technology. The blockchain can be regarded as a “distributed accounting network”. Everyone obtains a unique recordable ledger with the same content and keeps accounts with the participants. NFT is a set of protocols defined in blockchain technology. As a certificate of ownership of the item.

In the domestic market, many Internet companies have already entered the market. Since the beginning of this year, domestic Alibaba and Tencent have quickly entered the game with their blockchain technology-AntChain and ZhixinChain. In June, the limited NFT Dunhuang Feitian and Nine Color Deer skins launched by Alipay were instantly killed. Afterwards, Tencent PCG’s NFT platform “Huanhe” APP was officially launched, and 300 “Sound “Thirteen Invitations” Digital Art Collectibles NFT” were also sold out in a short period of time.

In this context, in the music field, in August this year, Tencent Music Entertainment Group (TME) took the lead in launching the TME digital collection platform. Its QQ Music and Tencent Musician platforms cooperated with musicians such as Hu Yanbin in the first batch of “TME Digital Collections”. , QQ Music will become the first domestic music platform to distribute digital collections.

According to reports, in the future, Tencent Musician Open Platform is planning to cooperate with QQ Music and Kugou Music on an NFT open platform. In the future, ordinary musicians can also issue their own NFT through simple DIY operations.

Regardless of the domestic market or overseas, the combination of music and NFT has already begun. In the “IMS Business Report 2021” released at the end of June, IMS pointed out that after entering 2021, the music industry has begun to actively embrace the NFT field. From January to May 2021 alone, NFT music collections worth US$65.2 million were released. .

The report also pointed out that NFT as a digital collection only applies it on the surface of the blockchain, and there may be deeper applications between music and NFT that are worth exploring in the future. For example, the blockchain-based music recognition technology can make the royalty payment of music in streaming media more fair and transparent, and the copyright can also be well protected.

Tencent Music enters music NFT

Tencent Music released its first “TME Digital Collection” on August 15th. In 2001, Zhang Hu Yanbin’s “Monk” 20th Anniversary Vinyl NFT was sold out on QQ Music. About 80,000 people participated in the appointment lottery.

User market, application value and overseas practice of music NFT behind TME's entry

After the first attempt at music NFT, TME will also collaborate with Tencent musicians and artists such as Zhang Chu, Zhou Chuanxiong, Mo Xizishi, Xiao Quan, Zhang Gazuo, Yike Xiaosong, to release more digital collections in different forms. For example, Zhang Chu combined the songs with his photographic works in the digital collection released, and carried out the planning of “Chu Tian Broad”. The fragments of Mo Xizi’s poems in the Yi people’s collection of the Yi nationality were combined with his prose poems, and the “Poetic Everything” was launched. , A small onion is based on the photos of “Easy to Know, Difficult to Know”, in collaboration with Zhou Chuanxiong and well-known photographer Xiao Quan, to create a song.

TME Digital Collection combines music and life observation photography works, trendy figures, and innovative collections of time tribute. That is to say, Tencent Music NFT is not only “music”, but also “visual”, it is a multi-content artwork. .

At a recent moon salon themed exchange event “The Moon on the Chain Harvests Penny” hosted by Tencent Musicians in Shanghai Music Valley , Lin Yanqiu, Director of Products and Operations of Tencent Musicians’ Open Platform, said that music NFT can be combined with cultural and creative content. Tencent Music is trying to explore the characteristics of musicians outside of music, combine it with music, and present it in the form of NFT products. For musicians who have tried it, it is a new product model and a channel to convey more self-information to the public.

In the eyes of Tencent musicians Zhang Chu and Yi Ke Xiao Cong, NFT is more important than recordability, which changed the untraceability of early streaming media and enabled works to be collected. At the same time, Zhang Chu believes that through technological means, musicians express more hidden personalities through NFT, and look forward to getting feedback from buyers.

Moreover, based on the blockchain technology of Zhixin Chain, music NFT is not only an art of audio-visual combination, but also bears the task of solving the copyright pain points of musicians.

Regarding the difficulty of confirming the rights of digital music, Lin Yanqiu said that Tencent Musician’s open platform is combined with a blockchain certificate. When each work is uploaded, a “trust chain” certificate will be produced for free, with a unique time point and identification. Prove the original creator. In the future time period, any similar songs will be monitored, and there have been successful cases of rights protection.

If the issue of right confirmation can be solved, the changes in the ownership of music NFT can be recorded to form a chain.

Qin Qing concluded that the benefits of music NFT to creators are that they face users directly, form direct communication with users, and have clear property rights transactions. The platform can open up a new track and transfer more traffic to creators.

According to reports, in the future, Tencent Musician Open Platform is planning to cooperate with QQ Music and Kugou on an open NFT platform. In the future, ordinary musicians can also issue their own NFT through simple DIY operations.

User market for music NFT

Consumer psychology, appreciation methods and social methods

From a consumer perspective, what kind of needs might music NFT meet? 

Encryption artist Song Ting believes that NFT has changed the consumer psychology, appreciation and socialization methods of users.

Last year, Song Ting held the solo and China’s first blockchain art exhibition “The Recyborg Cathedral and Bazaar”. Her NFT work “Peony Pavilion” was sold for 667,000 yuan at China Guardian auction house. As an artist, she has also participated in many auctions and purchases of encrypted art.

For consumers, the shallow difference between music NFT and ordinary digital albums is that consumers have the only product that cannot be copied, which is also the change in consumer psychology brought about by blockchain technology.

Qin Qing also believes that blockchain is to “reach a consensus” and “empathy” is the mainstream of NFT in the future. After changing the collection method, it is the artistic concept behind NFT that attracts consumers. Consumers agree with the expression of NFT and also need to be recognized by the group.

At the appreciation level, music itself is not a visual product. The TME digital collection to be launched this time is an attempt to combine audiovisual music with NFT. Regarding visual music NFT, Song Ting believes that it extends the way consumers appreciate music works.

“Music becomes an NFT difficult to visually stimulate. Many of the world’s famous encryption artists’ sci-fi animations are made of accessories. There is no soul, and there will be soundtracks where there is a soul. The emergence of Douyin has made everyone’s attention shifted. Maybe it will become after 10 As the main audience in the market, they have become accustomed to the multi-sensory stimulation brought by playing videos while listening to music.” Song Ting said.

Talking about the future combination of music and vision, Song Ting made a guess based on her familiar “antagonistic generative neural network” technology. In theory, melody and lyrics can be mapped to digital changes to generate a unique visual object.

From a social perspective, for music NFT, Song Ting expects that if she can socialize around music based on the collection of NFT, she may not have to participate in concerts in order to seek an aesthetic consensus.

“I think this is a kind of identity, and classify myself into a circle. In the exploration of music NFT, can you intuitively show your music preferences and efficiently find people in the music circle? There is no need to look for foreign music. Haitao is out.” added A-Gump, creative director of “Expanded Youth”.

More possible ways to play music NFT

Last year, Song Ting paid attention to the top 100 works sold in the world and found that 60% of them were related to science fiction. Although statistics showed that science fiction made it easier for the market to pay, Song Ting went the other way and did pad dyeing works. .

For musicians who want to join the NFT, Song Ting thinks that they should not be limited to the topic, because the earliest and most core consumers of encrypted art are still digital upstarts, and may be young people who have obtained social wealth in the Internet or the blockchain industry chain. However, regardless of whether there are sci-fi elements in a musician’s work, as long as it has a personality, it will extend the social interaction around the artistic content itself, and have unexpected effects.

Where is the future direction of Music NFT? Qin Qing believes that some recent domestic and foreign cases can be used for reference.

The first case is the combination of public welfare and music. On the World Ocean Public Welfare Day, Song Ting used more than 10,000 public welfare photos as materials, and trained four pictures through AI technology, and used them as the cover of the “World Ocean Public Welfare Day” issued by musicians. This is the first creative attempt to combine NFT charity, AI creation, and music content. It has a certain value for charity and the music industry.

The second case is NFT concert tickets issued by overseas platforms. The difference between it and ordinary tickets is that through the relationship recorded on the chain, more artist rights and placement opportunities can be ensured. However, the process of buying NFT tickets is more complicated. Qin Qing said that when NFT is issued, a compliance platform like Tencent is needed in China to help realize it.

The third is the talent show of virtual singers. The judges are real people, and the players are virtual people. The rights of virtual people and content transactions can be solved through NFT.

In addition, Qin Qing believes that the current issuance methods of the 721 agreement (single release) and the 115 agreement (batch release) can distinguish copyright transactions from sector transactions. In the future, Tencent Concert will explore a better distribution model in the NFT field.

At present, TME digital collections do not support donation, nor open the secondary market. But Qin Qing believes that there are more possibilities for TME digital collections in the future.

Overseas music NFT market

According to the music NFT statistics report released on the world’s number one commercial data platform Statista, music NFT sales in the global market have risen from USD 50,000 in September 2020 to the highest value of USD 26.7 million in March 2021. After a two-month drop, global music NFT sales in May 2021 were US$1.4 million.

From the perspective of NFT music style, electronic music has the largest sales volume, followed by Hiphop/R&B/Soul and rock/alternative music.

Because of the digital provenance, scarcity and collectibility of NFT works, the audiovisual collections sold in scarce quantities in the NFT market such as SuperRare are very popular, bringing huge profits to musicians. Earlier this year, RAC broke the sales record of SuperRare by selling “Elephant Dream” and sold it to the famous NFT collector Max Stealth for a high price of 70 ETH .

At present, many groups of overseas musicians such as Kings of Leon, Jay Z, Aphex Twin, Steve Aoki, etc. have entered the NFT market. Among them, the NFT album “When You See Yourself” released by the American rock band Kings of Leon on the ticketing and music NFT platform Yellow Heart in March this year reached 2 million US dollars in two weeks.

“When You See Yourself” NFT includes limited edition vinyl records and exclusive digital art works. Buyers can purchase them through tokens at a price of $50. Kings of Leon also included a low-priced 50 Ethereum (approximately US$90,000) “golden ticket” bid in its NFT series . The first 6 bidders can get 4 front row tickets for any world tour and other benefits.

The global music giants have begun to deploy music NFTs. In August of this year, Sony Music announced its investment in MakersPlace, an NFT trading platform. Warner Music has established a cooperative relationship with Genies, the world’s largest AR technology company, to develop Avatar and virtual props NFT for its artists. Previously, Warner also invested in Dapper Labs, the creator of the popular NFT platform NBA Top Shot, in 2019. Through its linkage with Genie, Warner musicians can turn their favorite cultural moments and latest artistic creations into virtual props. , Sold at Genie.

User market, application value and overseas practice of music NFT behind TME's entry

At the same time, some independent music NFT platforms have also been launched. At the end of last year, Binance Smart Chain launched ROCKI, the world’s first music NFT platform. According to the interpretation of Rolling Stone Magazine, independent musicians are turning to the blockchain field, and the NFT platform launched by ROCKI may bring a revolutionary effect in the music industry.

ROCKI uses blockchain technology to allow musicians to directly face fans, remove intermediate links, and obtain royalty protection. Fans can invest in musicians they like, and get work sharing by purchasing royalties on some songs.

The ROCKI platform has gathered more than 9,000 musicians and released more than 800 music NFTs. In the future, in addition to introducing more NFT gameplay, Bjorn revealed that ROCKI will target the Asian music market. As TikTok changes the way of music consumption, the music released on ROCKI is likely to be promoted through TikTok.

In the future, how the combination of NFT and music will develop requires more practice.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/user-market-application-value-and-overseas-practice-of-music-nft-behind-tmes-entry/
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