How are Music NFTs Changing The Music Industry?
NFTs are revolutionizing the world with their innovative technology and many industries are jumping onto the train, the music industry being one of them.
NFTs are giving artists full creative control over their digital assets on top of a new model to generate new revenue streams that completely sidesteps the middleman.
In this article, you’ll learn about how NFTs are revolutionizing the music industry.
The music industry is going through an evolution and NFTs are at the forefront of this transformation.
Traditionally, the music industry operates on a heavily royalty-based system. While streaming does ensure ongoing royalties for an artist, although not much, a physical record purchase usually delivers a single payment to the musician, no matter how many times someone listens to the album. And if the fan who owns the record sells it, the royalty holder doesn't get paid again, making it hard for most artists to earn a living just off their music alone. This is where NFTs come in, keep on reading to discover the different ways NFTs are disrupting the traditional music space.
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What Are Music NFTs?
A Music NFT is a certificate of ownership of unique audio or a musical piece that can be bought or sold. NFTs provide undeniable proof of ownership via blockchain technology and come with a certification of authenticity that can be validated at any time. Like crypto tokens, NFTs are stored in a distributed ledger, making them hard to forge. Through NFTs, artists can claim full ownership of their music without having to share their income with intermediaries like music labels or lawyers.
Different Forms of Music NFTs
There are a few different forms of NFTs in the music space. Let’s explore the different ways NFTs have changed the traditional way you can experience music.
Full Songs and Albums
Always wanted to own the first-ever vinyl of your favorite song or album? Now you can. More and more artists and musicians have started using NFTs to connect with their audience by releasing exclusive songs and records.
Recently launched on Binance NFT, Trey Songz, award-winning R&B singer, curated an exclusive NFT Mystery Box that features unreleased new songs and exclusive music pieces composed by Trey Songz himself. Another set of NFTs in the collection includes other rewards such as newest songs, opportunity to have zoom calls and once in a lifetime music co-creation with Trey.
Digital artwork and photos
Artwork plays a big part in a musician's artistry and, to a certain extent, income. Digital artwork and pictures can include limited edition album covers, posters and exclusive behind-the-scenes images from concerts.
The Melos X David Bowie series on Binance NFT included David Bowie’s unreleased audios, pictures and behind the scenes stories.
Tickets for gigs
The rising popularity of NFTs has created more use cases in the physical world, including exclusive access to in-person perks, luxury items, and even concert tickets. The bonus of an NFT ticket helps combat ticket fraud and you can technically never misplace it!
Video clips from your favourite performances
Much like the 'NBA Topshot' NFT video clips, now you can memorialize a moment at a concert that was special to you by purchasing it as an NFT and even potentially digitally displaying it in your home.
Web 3.0 and Value of music NFTs
In the Web 3.0 era where "people create content, people earn money", NFTs are especially useful to independent artists who are not signed to a music label. This is because NFTs give artists complete control and ownership of their creations. Moreover, artists do not have to be tied to streaming platforms since they can independently release their music to the public. What's more, NFTs are forging a new path for independent artists, offering them a great opportunity to generate additional revenue streams from their music and create exclusive content for their fans.
The Potential Of NFTs In The Music Industry
In most cases, people who purchase music NFTs aren’t buying the rights to the audio or composition, but paying for virtual bragging rights and to support artists they feel are undervalued by the traditional system. On top of allowing artists to earn commission-free revenue, NFTs offer a great range of flexibility to artists as they can literally auction any form of digital assets. This includes songs, full albums, merchandise, concert tickets, and much more, which puts a lot of power back in the hands of artists by giving them an alternative way to monetize their art or other forms of digital merchandise.
With all that said, even major industry players are also jumping onto the NFT train. For example, Warner Music Group has a partnership with Genies, a company that creates digital avatars and wearables. And Universal Music Group joined forces with a Bored Ape Yacht Club to form a metaverse band called Kingship.
How Will NFTs Affect The Future Of The Music Industry?
With the way NFTs are disrupting different industries, we could see an era where artists reclaim full ownership of their work by forgoing intermediaries like music labels and streaming platforms to independently release their music to the public. Moreover, we can also major players in the music space use NFTs and similar technologies to create music collectives to release music in the metaverse.
Take a deep dive on all things NFT by following Binance NFT on Twitter or our official announcement group to get updates on our weekly IGO drops and exclusive Mystery Box launches. If you’re an artist who’s looking to set up your own NFT, you can sell your own unique NFT to your audience via Binance NFT Marketplace and create additional revenue from your creations.
Read the following helpful articles for more information:
(Academy) Top 7 NFT Use Cases
DISCLAIMER: NFTs are an emerging asset class that is still evolving. The information in this article should not be construed as investment or financial advice. Always do your own research before making any decision to buy, sell or trade NFTs.