Since the end of 2020, NFT has taken the music industry by storm. With the epidemic putting many shows on hold, musicians are increasingly desperate to earn more royalties from streaming services. The NFT music market is expanding as demand increases and new projects are developed.
As in many industries, in the profit-driven music industry, the companies sitting firmly at the top of the pyramid have no incentive to improve the living conditions of musicians. Then musicians at the bottom of the pyramid have to figure out how to improve the music ecology on their own.
The emergence of blockchain has led to a wave of global affirmative action movements, where users are able to truly take control of their blockchain accounts, where information is passed and value is transferred without the need for third-party review or permission. Blockchain has already enabled financial freedom and a life of financial autonomy for many third world residents.
Blockchain can authorize musicians to hold their music or videos through private keys, and through NFT distribution, buyers will be entitled to their unique copies.
This year, the NFT ecosystem has combined with several well-known IPs to create a new wave, looking at the consumer market’s following of celebrities.
Music No.: BLE528-3
Music Description: Echoing bass, electronic dance music.
Several musicians have joined the NFT craze, and in February, Mike Shinoda, co-founder and co-lead singer of rock band Linkin Park, released a piece of music he composed as NFT (One Hundredth Stream) for auction on the platform, which eventually sold for $30,000.
At the end of February, the well-known DJ and producer 3LAU released 33 limited edition NFT albums “Ultraviolet” with a total auction price of $11.6 million.
In March, rock band Kings Of Leon released the NFT album “When You See Yourself”, which earned over $2 million in sales.
Music number: AD2217-1
Music Description: Energetic acoustic guitar drives this classic pop song.
On May 25, singer A Duo released her new song “WATER KNOW” on her personal microblog. The whole song was digitally encrypted using NFT technology and the cover and the song’s attribution rights were auctioned for public benefit, which is the first NFT digital song auction for public benefit in China. It is reported that the bidding amount exceeded RMB 10,000 in only 10 minutes of uploading, and the final work was sold for RMB 304,271.
The combination of NFT and music is becoming a new popular trend, attracting more musicians to participate in the NFT field. It brings a brand new model to the development of the music industry. NFT and blockchain technology have changed the traditional way of music distribution and made music copyright management more transparent and clear. It solves the problem of digital music ownership and brings a new source of income for music creators.
NFT’s real-time authenticity identification and tradable attributes effectively enhance the traditional collection market model, not only gaining recognition from crypto asset users, but also attracting a wider range of mass consumers. nft will become an independent new entertainment media category.
NFT will not solve the livelihood problems all artists have faced or are facing during the epidemic, but it still gives them new opportunities.
NFT + Music Industry Growth Potential
It is well known that in the art world, non-homogenized tokens have been making huge waves. And in the music industry, the NFT hurricane effect is right on schedule. data collected by Water & Music shows that in February 2021 alone, NFT music industry earnings have reached nearly $22 million.
One of the best ways to understand the NFT music industry is to follow some of the key early players that have emerged in the space and are leading the way as Music NFT expands rapidly. water & Music statistics show that Music NFT sales have increased 150 times in the last six months or so. It seems that every musician and music company is trying to get in on the action.
Music NFT can take many forms, including but not limited to concert (virtual and physical) ticket sales, sample packs, unreleased song previews, artwork, and more. As music NFT continues to grow, the potential uses of the technology will rapidly expand far beyond how NFT is used today.
Why Buy NFT Versions of Music
Many people will ask why buy an NFT version when they can find the source on traditional platforms.
The Novelty Effect
For some, there is no doubt that NFT is novel and cool, offering access to electronic album downloads as well as limited edition physical versions of records and unique NFT album collectibles.
NFT albums are still a relatively new concept in the music industry, and for those unfamiliar with the NFT industry, it’s a lot like explaining the Internet to people who have never seen it in the 1990s. by purchasing NFT releases from your favorite musicians, in a way that provides the most direct way to understand this emerging concept.
Limited and Rare
NFTs, “non-homogenized tokens”, are often limited or unique, which is the key to the fan economy: “from idols, limited and precious”. Most musicians will release songs or albums in a limited format, creating unique, saleable digital goods and artwork for fans, bringing a unique musical experience.
Although NFT is a digital commodity, the underlying logic of buying NFT is similar to buying physical goods. For example, even though an album can be played online for free or for a small fee, many fans will still want to buy limited edition vinyl.
The popularity of NFT has something in common with brands that are driven by marketing; Supreme T-shirts are nothing special, but they are still very special because they are only available to a select few.
Some musicians are using NFT to give their supporters an unprecedented experience, including front row tickets, personal memorabilia, etc. Overall, it’s a rich and unique experiment. Therefore, buying NFT from a musician buys you a unique item.
The volatility and uncertainty of NFT makes it a somewhat riskier holding than some traditional investments, but for many investors, they are willing to take that risk.
Simply put, NFT can be viewed simply as a “digital asset + authentication certificate” hybrid that holds a lot of promise for any application that can link the real world to NFT. Because NFTs can be authenticated and highly secure, musicians can also better retain fans, create new ways to interact, and not only gain more royalty revenue, but also reduce the traditional inherent costs and expenses.
How NFT empowers musicians
For musicians, NFT offers the exciting possibility of removing some of the industry’s middlemen and third parties and tokenizing their work in a whole new way.
Songs are sold to record labels, and after the label’s cut plus marketing costs, most musicians receive far less than expected. For most musicians, company managers, record labels, publishers, etc. make far more money from their music than the musicians, leaving them with only a small percentage.
Grammy-nominated musician Illmind recently released the world’s first beat sampling package in the form of NFT. Anyone can listen to it, but ownership and access goes only to the highest bidder. This sales model could have a major impact on the way music is licensed and sold.
Currently, licensing and transferring ownership of music is a fairly cumbersome process for record labels, publishers and their lawyers, and manually clearing samples for use or transferring ownership can even delay the release date of the music. But using NFT makes licensing and transferring music as easy and fast as shopping online, with efficient and secure document transfer.
As the music industry has been hit hard by the New Crown virus epidemic, NFT is increasingly seen as a new way to reduce piracy of digital works and help generate revenue for artists.
NFT music platform ROCKI+AUDIUS
If the introduction above has given you a basic understanding of the NFT music industry, then the next section will take a look at two relatively well-known NFT music platforms – ROCKI and Audius – to help you further understand how NFT music platforms can empower fans and musicians alike.
ROCKI, a digital music streaming service and payment network, is the largest music platform on the Coin Smartchain and aims to reward artists directly through its in-app native token $ROCKS. The platform operates on a hybrid user-centric model where artists can receive cryptocurrency as a reward.
ROCKI opens up new revenue streams for artists, while bringing new fan engagement and value. On ROCKI, musicians can leverage their existing fan base regardless of their initial audience size, introducing musical NFTs and a unique payment model that allows musicians to generate revenue even in uncertain times when the epidemic is still raging.
In addition, ROCKI expands the definition of ‘fan-centric’ by rewarding listeners with ROCKS tokens on the ROCKI platform to thank them for listening to sponsored and curated music. Listeners can earn ROCKS tokens for creating playlists, providing feedback and hosting social events, a precedent set by the streaming platform.
ROCKI tries to solve the following problems :
- cutting out middlemen and third parties, allowing fans and artists to build relationships directly
- working with artists who completely own their music, i.e. independent artists, which is by far the fastest growing category of musicians.
- using the power of blockchain to handle operations: transparency, security, contracts without trust, finance.
- Pay streaming royalties with a hybrid model and share most of the subscription revenue with musicians.
- Reward listeners and attract more users to participate.
Audius is a decentralized streaming platform that runs on multiple nodes to ensure that the music is fully owned by the artists themselves. With more than 3 million monthly users, the platform is designed to replace Spotify and SoundCloud, and opens up new possibilities: incorporating its own NFT library into the network.
The platform describes itself as “the cornerstone of the creator economy” and a hub for artist/fan interaction. The platform also enables the Audius passport, which allows users to connect to the Web 3.0 ecosystem. The network requires no permissions. As a result, creators are able to tap into an entire library of existing music to present new works with a new look and feel. In addition, network participants can run nodes, make contributions and receive rewards.
Rather than selling NFTs, Audius has introduced a “Collectibles” feature that allows participating artists and a certain level of users (both musicians and users must hold at least 100 Audio tokens to have a Silver Tier account and be eligible to use the Collectibles feature.) This is a great opportunity for musicians to market and sell their NFT collections, and for users to discover and purchase digital items of their choice.
Audius allows musicians to distribute to fans and receive direct revenue, featuring.
- an efficient token economy driven by Audius platform tokens ($AUDIO), third-party stable coins and artist tokens
- Decentralized storage solution and ledger accounts for sharing audio and metadata.
- Programmable mechanism.
- A discovery protocol for users to efficiently query metadata.
- Decentralized management protocols where artists, node operators and fans can all have either individual or collective rights in decisions about platform changes and upgrades.
NFT’s empowerment solution for music
It is well known that digital media can be copied, shared and stolen: seed downloads and audio leaks undoubtedly cut into the profits of the entire music industry, threatening traditional distribution and monetization models. By investing in NFT, music industry creators, curators, gallerists and other stakeholders are attempting to create and capture the value of ‘digital scarcity’. The value of an NFT song is not necessarily just its sound, but allows consumers to have unique ownership of that song file, transferring ownership directly from the artist themselves to the buyer via the blockchain.
For superfans, that glory, bragging rights and bragging rights may be enough to make it captivating; and for those hundreds of speculators flocking to the NFT market to drive up the price of NFT assets like GIFs and JPEGs, they hope that the novelty of NFT music media will continue to build value in the secondary market over time, allowing them to make more profit through resale.
Convenience and Flexibility
One of the most important features of NFT is its convenience. Fans simply need to create a digital wallet to access and receive content, participate in auctions, and have a chance to win competing titles. This makes purchasing exclusive music productions as easy as shopping online. Musicians also simply register to upload their work, set entries such as willingness prices, and wait for buyers to auction it off.
In addition, artists have a lot of flexibility in what they want to auction, which can be digital but can also be physical. Albums, digital works, sound clips, merchandise and concert tickets are all forms of non-homogenized tokens that musicians can post. Fans are happy to pay for this novel experience, and musicians can naturally ‘sit back and enjoy it’.
Secure and decentralized
Digital transactions are secure and instant, with no middlemen, and NFT links musicians and fans directly. But instead of digital currency, musicians exchange NFTs for concert tickets, limited edition experiences, digital content, merchandise and music. Fans participate in auctions for these tokens, and the highest bidders are deposited directly into digital wallets through secure transactions.
In these exchanges, which do not involve third-party record labels, musicians can raise funds for the content they auction and keep all of it. Fans spend money to acquire unique content, the proceeds are securely stored in their digital wallets, and the auction funds can virtually go to the musicians.
Additionally, the in-blockchain encoding of makes the NFT music industry persistent, existing outside of any media platform. Once a file is encoded as NFT, it is very difficult to steal or perform other irregularities. As long as the blockchain is functioning properly, NFT music will last almost forever.
Ticketing for live and virtual events has long faced many dilemmas: inefficiencies, bot programs, scalpers, hidden fees, counterfeit tickets, and more. Blockchain-powered NFT minimizes the potential for fraud, ownership transfer records are readily available, and ticket verification is easy. nft ticketing (or “smart ticketing”) could also revolutionize the secondary sales market.
Challenges for the future
The demand for NFT music tokens in the marketplace often comes from the need for specific musicians’ work. Popular or established musicians can effortlessly attract fans and participate in bidding. But for emerging artists, this demand takes a lot more time and effort to create. New artists do not have as much opportunity to benefit from this new form of music.
To date, the number of emerging artists entering the NFT market remains small. sales of NFT are often driven by status and hype, not by level, so it is understandable that emerging artists are not bursting at the seams.
NFTs can inspire new art forms, but if the value of art is purely its scarcity, then limited distribution and artist access are paramount.
Digital scarcity is very different from physical scarcity. Limited seating is an example of scarcity in live performance, a limitation imposed by physical conditions, but the number of tickets sold for NFT live shows also needs to create scarcity, and the number of tickets sold can be determined by the artist. nft relies on an artificial concept: make something that is not scarce scarce, and value will naturally follow. But too high a price may also create a sense of exclusion and turn many fans away. The decision on the level of scarcity still needs to depend on the scale.
Will this be a new bubble? Are we overestimating anything because of NFT’s current hotness? If the price of selling NFT is based on hype and scarcity, then the risk to those who buy NFT as an investment product is immeasurable once people’s interest drops.
It can cost hundreds of dollars to own a song or album with an NFT label, and NFT music items are no longer simply music or MP3s, but have entered more of a collector’s item category, often selling for much higher prices. In addition, there are musicians who are creating copies of their work that have NFT tags. In theory, it does make each piece unique, but its value can also be greatly diminished in the real world. If, as a collector, you want to purchase an asset that will preserve and increase in value in the future, try purchasing works that are truly unique, not just copies with the NFT label attached.
The benefits of using blockchain to transfer ownership of intellectual property are readily apparent, but there is still a lot of uncertainty involved. Given that the technology is just being introduced and global copyright law is extremely complex, smart contracts in a decentralized system are likely to run into problems that will need to be discovered and resolved along the way.
NFTs can be sold in the marketplace. The vast majority of music NFTs are sold using an auction model, but some are sold at a fixed price. Which method takes precedence depends on the seller’s wishes. Most marketplaces do not accept payment by credit card or traditional cash, which has somewhat prevented many fans from entering.
The future is here
As more and more companies recognize the value of the NFT music industry, this emerging market is gradually beginning to gain recognition.
If you are a musician trying to break into the NFT industry, you can design limited and meaningful NFTs so that your supporters are buying authentic and unique items. Not only will this add more value to them, but it will also build a close and trusting relationship between the two parties.
In short, NFT will be disruptive to musicians and the music industry. It gives musicians more control and decision-making power, and it provides them with a new revenue stream, which is especially important today when the epidemic is not over. At the same time, it gives fans the opportunity to enjoy the thrill of owning their favorite artist’s global singles and allows more fans to have closer access to musicians, as well as safer and more secure access to verifiable NFT assets.
The blockchain industry has always had the problem of “breaking the circle” of lowering the threshold of use. Browsers, wallets, trading platforms, games, etc. have been improving the experience and simplifying the process, but it seems to have limited success, still circling in a small circle, and the mainstream “traffic crowd” has never entered. The mainstream “traffic crowd” has never entered.
NFT provides a tool and carrier to the music industry as the representative of the cultural entertainment industry, based on the huge energy of the “fan economy”, so that “break the circle” easily, the future is expected to have more film and television stars, musicians, designers, etc. to join In the future, it is expected that more movie stars, musicians and designers will join the NFT boom, and some blockchains with vertical distribution of NFT functions, famous IPs of traditional industries and the depth of the combination of blockchain and industry will benefit from this.
Although NFT music is still in its infancy and its business operation model and user volume cannot be compared with the mainstream music market, its role in cultivating the concept of paying for digital music, building a better music ecological environment and promoting the development of the music industry is still of profound significance.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/when-nft-knocks-on-the-door-of-music-a-new-world-of-music-will-begin-to-be-written/
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