Applying NFT technology to music is gaining traction. Here’s how it could disrupt the industry in the near future.
NFTs (non-fungible tokens) have risen in popularity over the past few years, generating millions of dollars in revenue for the art community, as well as for numerous businesses and celebrities in the entertainment and music sectors.
The music business has reported some mind-boggling figures, with electronic artist 3LAU selling just short of $12 million in NFTs and Ozuna publishing an NFT compilation that earned just under a million dollars.
While the figures above are remarkable, the music business has a far wider possibility to grow as a result of NFTs, which provide musicians with a new method to make cash, communicate with fans, and distribute music. To fully appreciate the possibilities here, it is necessary to first have a firm grasp on what NFTs are.
What are music NFTs?
Last year was a huge year for music NFTs, and we expect this popularity to continue to grow. NFTs are unique cryptographic tokens that reside on the blockchain. Moreover, each token signifies a digital or physical asset. Once produced, an NFT cannot be changed or duplicated. It is for that reason that NFTs may be programmed in such a manner that royalty payments to the creator are possible, making them a possibly lucrative technology for artists.
Music NFTs are digital recordings of music that are stored on a blockchain in the form of unique digital assets. Unlike MP3s, music NFTs may also be sold on the secondary market, allowing artists to receive royalties on each sale.
How NFTs Can Empower Musicians
Apart from generating revenue via direct music NFT sales, there are other ways in which NFTs may benefit artists.
Eliminating Intermediaries
One of the primary difficulties that artists confront is that they are often bound by a record company contract. Artists that do not have a contract often rely on streaming services to promote and earn money from their music. In either case, the musicians must split their earnings with large companies. By using NFTs to sell their work, they can receive money directly and cut out the intermediaries profiting from their creativity.
Royalty Revenue
Musicians who make and sell NFT music can receive revenue from further sales. NFTs allow artists to earn directly from how well their music sells, rather than relying on centralized streaming to produce a small profit.
Creating Possibilities for Emerging Artists
Creating NFT music on the blockchain has a low barrier to entry, which allows new artists to reap the same benefits as established names in the industry. Furthermore, artists who use NFTs to sell their work don’t have to conform or compromise on their vision to get picked up by a label. Instead, they can create the music that they want to create without sacrificing their ability to earn a living.
Final Words
At the moment, just a few artists are investigating the potential of NFT music. However, as awareness and acceptance expand among fans, the chances for artists and others to profit from the sale of music NFTs continue to grow significantly.