Throughout the years, the music industry has experienced massive changes. The most recent disruptor in this $31.2 billion industry is non-fungible tokens or NFTs. For musicians, these exclusive digital assets are redefining opportunities for the creation, ownership, and profit of their art.
A music NFT is a special kind of digital asset that exists on a blockchain and can be purchased and traded. A music NFT incorporates a musical and/or visual element to a standard NFT.
What is the appeal of Non-Fungible Tokens for artists?
An artist’s ability to connect with their fans is what defines them, and non-fungible tokens enable them to extend this by creating a direct link with them. Music NFTs help artists avoid conventional platforms and middlemen, thus resulting in higher revenue. Moreover, NFTs provide an appeal of exclusivity by letting performers release exclusive behind-the-scenes videos or limited-edition songs.
The music industry unfortunately has never been a fair one. Ownership and distribution issues have always been a source of frustration for artists. NFT offers artists benefits that transcend the usual monetary ones. They can take back the ownership of the creative work and authoritatively state the conditions for distribution, price, and sale of the same. To guarantee that they receive their fair share of secondary sales, they can incorporate royalties into NFTs.
NFTs have been a catalyst for a radical transformation in the musical industry. Multiple artists have harnessed the power of NFTS and have not only acquired incredible wealth but have concreted their fandom by providing unique experiences for their fans, forming a deeper bond between them, and creating more value for them. Steve Aoki, Eminem, Kings of Leon, Nas, Tory Lanez, and Snoop Dogg are some of the artists that have made their music available as NFTs or have incorporated NFTs in some other way.
Grimes gained a lot of attention after he sold a set of digital artworks as NFTs for $6 million. One of the first well-known bands to release an album as an NFT was Kings of Leon in 2021 with their album When You See Yourself. The band provided rewards including lifetime front-row tickets for their concerts, an additional unique album package, and access to exclusive audiovisual art when their album was released on the Yellowheart platform. They made waves in the music world as the proceeds from their sales exceeded $2 million.
In February 2022, Steve Aoki introduced A0K1VERSE. To participate, users must purchase an NFT passport, which grants access to free live concerts by the artist, complimentary merchandise, exclusive events, and more.
But with radical change comes radical difficulties. Not a lot of these artists are technically sound enough to cope with the intricacies of the NFT realm. Sometimes concepts like minting, selling, trading, and listing can be too complex for them. Plus, one must develop skills and an in-depth understanding for selecting the best platforms, comprehending the costs, and gauging out volatility and market scenarios.
In conclusion, non-fungible tokens have expanded the already huge array of avenues when it comes to music distribution and engagement. It all comes down to whether or not it resonates with the artist’s overall career plan and their brand. Artists can use NFTs in a way that reflects their goals, principles, and artistic vision.
