If digital collectibles and art are the only things that come to your mind when you think of NFTs, then you might want to think again. You’d be amazed to know that NFTs are now setting new trends across industries, including gaming NFTs, TV shows, and music. So let’s dig deeper to find out what the music NFT rage is all about and how it is expected to transform the future of sound.
Music NFT- What’s the Buzz?
Built on block-chains, the non-fungible token (NFT) is a one-of-a-kind token. Unlike fungible tokens, which are easy to divide, NFTs are indivisible. This means there is one token only for each asset. It can’t be divided to create smaller units. Hence, it provides a new way to collect, share, and sell music. Artists can now sell their music for Cryptocurrency exchange. It’s a simple, secure, and easy way for artists to monetize their music by creating unique digital assets and trading them on non-fungible token marketplaces. Musicians can sell this token as a:
- Music video
- NFT album
Furthermore, NFT music platforms such as Royal empower musicians to earn royalties every time they sell NFTs.
On the other hand, people can also use NFTs as currencies to buy merchandise or concert tickets. Moreover, the music NFT ownership by fans can show their support and love for their favorite artists while getting the financial benefits of being an NFT owner. It’s a win-win all the way. Put simply, when you buy music NFTs, you don’t just get a digital file, you buy a unique token that only you have and nobody else. However, NFT owners can trade it with others and even resell it.
How Are Music NFTs Transforming the Future of the Music Industry?
The wave of NFTs in the music industry began in 2021. Since then, multiple artists such as Whitney Houston, Mike Shinoda, and Shawn Mendes have launched music NFTs, revolutionizing fan engagement. As this musical art type is distinctive and can’t be replicated, music NFTs are ready to transform the industry in multiple ways. Here’s how:
Excellent opportunity to Monetize
Unlike the conventional streaming services that pay musicians only a small percentage of the total revenue generation, music NFTs give them better opportunities to sell and monetize like never before. Through this platform, artists can sell their music directly to their fans. Hence, NFTs give artists better and more control over their music, allowing them to hold a bigger share of revenues and profits.
As music NFTs are unique tokens, it is practically difficult for people to copy and sell the album illegally. This is a massive advantage for the industry that has been battling piracy for decades. Websites like Napster and LimeWire quickly became popular as these music websites made it easier for the masses to burn CDs and share them online. This made it challenging for musicians to earn revenues as pirated music was available readily online. However, music NFTs can potentially reduce piracy, if not eradicate it.
NFTs have a unique standing under copyright law (DMCA – Digital Millennium Copyright Act). Artists can request their work to be taken down from the web if they have ownership and didn’t authorize the publication. Though it is a significant step, if better NFT copyright enforcement laws are imposed, musicians will benefit more.
Increased Fan Engagement
NFTs take fan engagement to the next level. It creates a direct and stronger connection between token holders and artists. So, instead of reaching out to a streaming service or a record label, music fans can buy music NFTs directly from the artists and enjoy their favorite songs while supporting their favorite artists.
Eric Dalius is The Executive Chairman of MuzicSwipe, a music and content discovery platform designed to maximize artist discovery and optimize fan relationships. He also hosts the weekly podcast “FULLSPEED,” showcasing conversations with trailblazing entrepreneurs from various fields. Through the “Eric Dalius Foundation,” Eric has created four scholarships for US students. Connect with Eric on Twitter, Facebook, LinkedIn, Instagram, and Entrepreneur.com.