Music NFTs, on the other hand, have the potential to create communities that are more intimate, creative, and rewarding for both artists and fans.
Since we all became addicted to the internet, the music industry has declined in revenue. In 2016, the music industry was worth $7 billion, down from $20 billion in 1999, according to a study from the University of Dakota.
The entire music ecosystem suffers while record executives aren’t making as much money as they used to. Listeners are becoming increasingly fragmented, venues are closing down, and artists are having a more challenging time getting signed.
Generate revenue and engage their fans. Many artists are now exploring new strategies to engage their fans. NFTs for music is one promising avenue.
Social Media and Music NFTs
The music industry has initially benefited by enabling artists to connect with their fans and promote their music through social media platforms such as Facebook and Twitter. While record labels have used these platforms to plant the artists, they’ve been groomed for success, and independent artists have been stifled in their creativity and innovation.
Spotify and Apple Music are also experiencing this trend. Listeners now find new music easier, but artist compensation is also declining. On the other hand, artists can regain control of their careers by using music NFTs to connect more directly and intimately with their fans.
The Web3 Music Boom
In the last two years, Web3 music has become more and more popular. Market value has risen to $1.2 billion due to hype surrounding NFTs and crypto. There is a positive trend overall, despite price fluctuations.
It’s nearly impossible to cover all the possibilities of music NFTs in one article. Even so, here are a few examples of what music NFTs are capable of:
- Provide artists with direct access to their fans without the need to go through a record label.
- The ability to buy concert tickets, merchandise, or even stakes in an artist’s success is a great way to let fans show their support.
- Donate to a cause that is important to artists or help them fundraise.
- Engage fans and artists in new ways.
Transforming the Music Industry with NFTs
Using NFT sales to fund albums. Providing fans with a fragment of the CD they helped finance. The ability to demonstrate support tangibly. The possibilities are far from limited to that. One of the most exciting projects is using music NFTs to transform the music industry.
Music artists can release music directly to their fans via Audius. This decentralized music streaming platform allows them to bypass record labels and streaming platforms. In addition to virtual concert tickets, Audius is developing an NFT marketplace where artists can sell merchandise and even stakes in their future success.
Probably A Label
Let’s also appreciate the big labels. In addition to working with some of the biggest acts in the music industry, Probably a Label has collaborated with Warners Records and Probably nothing. Probably a Label uses NFTs and Blockchain technology to promote and distribute music efficiently and transparently.
Music NFTs Create Communities
Despite providing a space for fans to gather and interact, social media platforms are still curated, filled with trolls, and ultimately controlled by central authorities.
Artists and fans can benefit from music NFTs, creating more intimate, creative, and rewarding communities. In addition, giving fans a real stake in an artist’s success and sharing ownership of a song with them is much more democratic.
We have only glimpsed the possibilities of music NFTs so far. Our feeling is that we’ll see it soon.