Music And NFTs. What Are The Benefits For Artists?
Have you ever heard of Non-Fungible Tokens (NFTs)? If you have, most probably 50% of what you know is that most people think of hugely overpriced “jpeg” images, crazy prices, and Ponzi schemes when they hear about them. But there is another point of view, which says that NFTs are bringing new opportunities in a creator-led economy that have never been seen before. And it’s true.
The music business has changed drastically in recent years.
Streaming services have provided people with limitless music for a monthly fee. Then, with the rise of blockchain technology and digital assets, NFTs have become another way for artists to make money from their work.
We’re just starting to see how NFTs might change the music business in the future. Since big artists and bands like Grimes or Kings of Leon have paved the way, more and more artists are turning to digital assets.
What if I tell you that NFTs can change the future of music and can be a handy tool for any musician? This article will look at how music and NFTs can be used together to create a powerful branding tool for artists.
What is music NFT?
A non-fungible token (NFT) is a unique digital asset that can be bought and sold. It lives on the blockchain. A normal NFT usually only has a visual asset, but a music NFT has both a visual and a musical asset. When an artist makes an NFT of their work, they can set the price at which it will be sold. If someone buys the NFT, they will always own it and can do whatever they want.
Now, let me explain it better.
Ownership NFTs are kind of like digital vinyl records. They let the owner play and download the song anytime they like. Like other cryptocurrencies, these NFTs may be bought, sold, and traded. Buyers may be granted a portion of future royalties. An NFT can’t be faked, copied, or deleted.
Similar to online music streaming services like Spotify, streaming NFTs may be accessed digitally. They let the owner listen to music online for a limited time. You can also sell or trade these NFTs.
Why is NFT better than Streaming?
Streaming platforms have made it easy for fans to listen to almost any song, which is like a golden age for fans, but it hasn’t been so good for artists. The existing financial arrangements in the music industry favor large labels and platforms at the expense of independent creators. It’s just 1000% harder for an independent artist to build a successful career in these conditions.
So, NFTs introduced a novel economic model, allowing for the direct monetization of intellectual property without the need for middlemen. Furthermore, the mechanisms included in the blockchain make it possible for artists to receive royalties from secondary purchases of NFTs. These improvements empower artists to retain legal control over their work and address the issue of musicians receiving unfairly low pay from monopolized streaming platforms.
How exactly can musicians benefit from NFTs?
You can sell your music for a fair price. And those of your fans who support you and love your music will be happy to get your unique music NFT. As a music NFT creator, you can also set a cap on the total number of copies ever made and sell them on an open market. When customers purchase your NFTs, they can trade them on any cryptocurrency exchange that allows NFT trading.
If you’re wondering whether NFTs are popular or not, here’s a story for you:
Once, someone paid the highest price of approximately $400,000 for a token representing Grime’s song “Death of the Old,” Now, this person has permanent access to that version of the music. So, why’d anyone buy it for such a high price?
This is because the NFT’s value rises when the number of available copies of music decreases as more people buy it.
Here’s how the co-founder and business development executive at SmartLabel, Jonathan Oudekerk explains how artists can benefit from creating NFTs:
“It’s very hard to get discovered on Spotify, for example. You need to be on the release radar. 60,000 songs are loaded on Spotify every single day. 95% of those are never going to get more than 1,000 streams. The chances of getting discovered on Spotify are comparable to winning the lottery twice or getting hit by lightning four times. But now upcoming artists have new channels in the crypto space – social media platforms such as Discord, Twitter Spaces, and others – where they can showcase their NFTs and reach a completely new audience. Artists are making more money than they ever made streaming on YouTube and Spotify.”
There’s one thing to note before you enter the world of NFTs. To do that, you need to have a fanbase. I’m not saying that only stars can benefit from NFTs. No, any artist can do it. You just need to promote your music to the point that you have some die-hard fans that will be ready to learn how NFTs work and will pay for them.
And if you don’t want to get stuck in this promotion phase for too long, you can successfully promote your tracks with PromoSound. This is a company with 10 years of experience in the music industry. They know all about promotion and will make sure you’re reaching your goals quickly and effectively. So, trust me, with the help of this service, you will build your active and loyal community in no time. Waiting is not an option. You can build your career now and make it even more successful with NFTs after that.
NFTs let you speak straight to your fans
What’s fascinating about NFTs is that, unlike traditional digital sales, all transaction details, including ownership information, are embedded directly into the blockchain, making them totally transparent. This direct line of communication allows you to build a stronger bond with the fans. You can tell exactly who your admirers are if they’re willing to pay even a dollar or ten for your NFT.
Another major issue with streaming services, and even physical sales, is that the artist cannot know who is listening to their work or rewarding them for doing so. With NFT transactions, artists may cut out the intermediary and speak straight to the audience.
You get a chance to transform an Audience into a Community with the help of NFTs
Most people think of an audience as a one-way relationship, while a community suggests that the artist and their fans can talk back and forth.
Now more than ever, it’s important for artists to give back to the communities that support them. Blockchain and NFTs make it possible for them to do so directly, without the need for a middleman, while also providing special perks to their supporters.
It all begins with improved communication and the widespread availability of NFTs.
Artists ready for success in today’s market are willing to use every resource available to them to cultivate an active and responsive fanbase for their work.
How can artists use NFTs to promote their music?
- Well, the first tip is kind of obvious. Artists may use the blockchain by making an NFT of a song and selling it on a blockchain-based marketplace. This offers them permanent access to the music since they may play it whenever they choose.
- NFTs have an opportunity to potentially function as event tickets. Those who like live music performances no longer need to be concerned about losing their tickets.
- In the same way that NFTs may be used to thank artists’ supporters, they can also be used to reward such supporters. Musicians may create digital assets to provide fans with benefits like early access to new music or other content. For instance, NFTs are tokens that can be used anywhere. Some of them might benefit from a token for your next live event or some other reward. This way, you’re building a deeper connection with your audience. Providing bonus content via “airdrop” to existing NFT owners is a novel method to thank fans. Once the live show is over, you may create digital products like more NFTs, a stage selfie, or a video clip. You could put a cap of 500 on them, making them very desired. If those collectors resell their purchases, the original artist will get royalties on each transaction.
The use of NFTs opens up new ways for artists to monetize their work, allowing them to receive direct payment from their audiences for music or tickets to performances. When it comes down to it, NFTs and music go hand in hand since they’re both massively successful entertainment options. The two working together will expand your brand’s reach and popularity.
What’s next for NFTs?
To begin with, more musicians may start offering NFTs as exclusive perks to their most devoted followers. In addition to boosting fan interaction, this would also strengthen the bond between artists and their audiences.
Second, there may be an increase in the number of services that facilitate the development and distribution of NFTs without the need for specialized programming skills. This would make it easier for people to be involved with NFTs and music.
Last but not least, other services may emerge to facilitate the development of smart contracts for the distribution of NFTs.
Even though most people don’t understand how NFTs work, and it feels like a complete bull*t for most of them to waste their precious time, you need to start creating them. There’s no better time to learn about NFTs and start making money than now. Because NFTs are not going anywhere.
Artists are finally starting to understand the potential benefits of NFT integration. With music NFTs, musicians are paving their roads to the top without relying on traditional avenues like record agreements, constant touring, and so on. Moreover, both artists and fans can benefit financially. It’s a win-win situation.
So, it’s time for you to start winning. Create your NFTs, teach your audience how to use them, and make it big!