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How the Music Sector Will Be Transformed by NFTs

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How the Music Sector Will Be Transformed by NFTs

What is a music NFT? 

It is the point where music and the piano keyboard meets the blockchain. And it again raises the question – are certain features of the blockchain world bringing such things as Non-Fungible Tokens (NFTs) to the mainstream?  

Everyone – okay, nearly everyone – loves music. People have always bought music using the existing technology of the day. From gramophones, cassette players to CDs and online streaming. Some of these technologies have favoured the listeners and not the artists. One such technology is the internet and online streaming that allows you to buy music for pennies. Artists have been complaining for years about the money machine drying up, and being left with the option of live performances to make money. This is why NFTs are becoming increasingly popular among music artists.

Why a Music NFT is an appealing choice for artists

Financial rewards for artists: Music NFTs have opened financial doors that seemed to be gradually closing on artists. You may have heard artists selling NFTs for thousands or even millions of dollars. It is a new stream of income and that in itself makes it very much welcome.

More than just music: NFTs also give artists the ability to market their music as a package within the smart contract. This means that you may be buying many other attractive perks besides just music. In the past, unless you were attending a live show by an artist you had to be content to listen to their voices through some form of media. In recent years you may even try to wave at them online and say: “Hey, I’m a fan!” and hope they notice. But an NFT can be the doorway to having a one-on-one with your favourite artists, getting a souvenir that may be worth more than a mere autograph.

Value over time: NFTs, unlike the music you buy and store in a certain format with the sole intention of listening to at will, is an asset that can increase in value – making it an investment. However, the downside is that its value can decrease over time. In contrast when a famous artist releases a limited number of NFTs into the market their scarcity can boost the NFTs value by great proportions.

NFT marketplace is a gamechanger: A platform where famous, successful artists and upcoming indie artists can sell their music plus other incentives to fans may be the beginning of the elimination of music middlemen. It may change the way music producers conduct business (that is if they survive the purge). That’s not to say that record labels themselves have not made moves to adopt NFTs into their revenue stream as we see the likes of Dr Dre founded – Death Row Records moving to add NFTs into its Merch division of their official site. 

It will certainly give artists (if it already hasn’t given) much more control over their music, how they package it and how they market it. There is even a new term: NFT music. No – it’s not a new music genre. It’s just music or any music-based NFT that you buy from an artist selling NFTs.

This may be a good time to mention that Kings of Leon released the worlds first album ‘ When you see yourself ’ as an NFT in March of this year (2021) as a series in three parts. The first was a special album package, the second offered live show perks including front-row seats (for life) and finally the third is in an audiovisual format. The auction ran March 5th – March 19th. Within just a few days of their auction they generated $2million.

NFTs taking over live shows? This sounds strange, but some artists have begun sales to perform live and selling access to these live shows through NFTs! Wait….do you mean people may not have to buy tickets and be physically present to attend a live show? That is certainly a gamechanger and the possibilities are just endless. 

Growing interest fuelled by rewards: Since NFTs are still a relatively new space (2021 has been the time of new interest and exposure) but everything seems set for a massive move towards this new way of selling, buying and hosting music in digital form. Five years from now, thousands of artists and fans who may not be very interested now, may be very much involved in NFTs as a way of selling, buying or listening to music in a special and more involved way. Many people are right now at a “wait and see” stage. Nevertheless, the kind of money some artists are making through the sale of NFTs has caught many artists’ attention.

 The package factor: The package factor in NFTs makes it very appealing for fans – and it will continue to be. When you love an artist, you don’t just listen to their music. You find yourself wishing to attend maybe one of their shows, perhaps find out more about them, etcetera. Another NFT music meaning, in this regard, is that you get a token from the artist with not only their music but much more than that. It is a new and exciting way to connect with your favourite artist, and that will change the future of music-based transactions as we know it. 

The impact of cryptocurrency adoption on growing NFT influence: There is also the elephant in the room: the NFT-blockchain-cryptocurrency connection. As the world makes a more and more likely shift towards cryptocurrency, you can be sure that the easiest and most convenient way for music artists and fans alike to transact and connect will be on the blockchain through NFTs. New designs, new packages, new innovations will happen. The possibilities are both exciting and infinite. 

Challenges

Artists and fans alike who are new to the crypto world find that they need to get some orientation as far as the world of blockchain and cryptocurrencies are concerned. But then people needed to understand the internet, apps and stuff like that, so this may simply be the teething stage. Indie artists who are getting in early may have an advantage over latecomers as they create an audience in these days of initial excitement and the novelty of the whole thing. 

Considering all the things mentioned above, it is extremely likely that the world of music is headed for the blockchain, and the connecting factor will be musical NFTs. Perhaps a few years from now no one will type things like: what is NFT music? – when searching online. 

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