Non-Fungible Tokens became a phenomenon throughout 2021 and ’22, but now, this format of digital assets is widening its reach and gaining new ground. Today, the sale of NFTs is skyrocketing, reaching well above $25 billion worldwide; and NFTs are being created to commemorate digital items as well as real-world luxury goods.
NFTs are largely being considered a disruptive movement that can take over any industry, anytime. Apart from art, which is the central aspect of NFT, experts point toward the music industry becoming the next big hub of digital assets. As every part of a music product, from lyrics to music, can be stored digitally and sold as an NFT, artists can take advantage of the technology. Chart-topping artists such as Kings of Leon have released entire albums as NFTs, and there are also popular music-oriented NFT collectives, such as Lostboy.
In the category of music, NFTs have a lot of playgrounds as well. Apart from the song itself, certain digital items can be provided as NFTs, such as a video message from the musician. Such offerings make the prospect of owning music-related NFTs quite lucrative, and the trend is catching on. NFTs are bringing a lot more to the music industry’s digital ecosystem, and artists are enabling the movement with total support.
Why Are Digital Assets A Necessity In The Music Industry?
The music industry is full of stories about how artists are underpaid. Be it revenue from album sales or online streaming, for most artists; it is not even enough to have a livelihood. As a result, artists are also considering NFTs as a means of raising funds. Even larger artists such as Linkin Park, who raised $11,000 with their first NFT sale, are astounded by the figures.
Another aspect of NFTs that helps musicians collect a fair fee for their art is the ability to easily track the ownership of the assets. When it comes to record labels, the artist is never really aware of how much their songs are actually earning. They are just provided a percentage and expected to not ask further questions. But, when selling music as an NFT, it is rather easy to find the owner and receive the right amount of royalties owning to the metadata stores in the NFTs.
The Complete NFT Offering
The collaborative aspect of the music world has been on a high ever since the pandemic began. Digital collaborations by artists of all tiers became a common sight on social media platforms. NFTs are the perfect way to commemorate such collaborations and also release the product. The appeal of collaboration needs to be digitally celebrated, and even grammy-level artists are entering the playground.
Artists are also becoming more digitally conscious and realizing the value of their digital fandom. The demand for owning a special product from the artist is quite high, and people are also ready to bid for such items. So, NFTs are not only becoming a collaborative tool, but they are also becoming a reason for artists to collaborate more.
NFTs are also used to promote ‘remixed’ songs and ‘fan edits.’ The possibilities here are truly endless, and the entire process can be centered around the NFT-release as well. Digital artists are also using NFTs to ‘launch’ their music instead of simply putting out a video on their social media, and the results are much more profitable.
Since NFTs exist on the blockchain, they can be used to actually drive the collaborations. In such cases, an artist would create a piece of music, store it in the blockchain as an NFT, and another artist can add their music over the original piece, and the final result NFT would be sold as the product. Artists are constantly finding new ways to incorporate NFTs into their creative processes, and the movement is only set to grow.
Why Are Music NFTs Fetching High Values?
One of the golden rules of capitalism, that scarcity should always drive price, serves the NFT market quite well. Most high-profile NFTs are highly limited, making them high-value items. In the case of music, this is extremely useful for artists. Being able to provide a unique experience to a select group who are willing to pay an extra amount is now absolutely easy through NFTs. This also allows the artist to connect more closely with the fans and create further content.
From backstage passes to personalised content, artists are enabling various products through NFTs. Even small clips of songs are being sold for well over thousands of dollars, something that no one in the music industry would have dreamed of before. It all ties back to the scarcity equitation, whereby most of these NFTs are treated as ‘collector’s’ items.
If we take a look at history, musical items have always been treated as a rarity and had collectible value. An original ticket stub from a Beatles concert would fetch a good value at an auction. So, when Beyonce announces a new snippet of her upcoming album as an NFT, it is only natural that people would bid over it.
Musicians are now releasing their personal NFTs, which fans can show off in their NFT collection as a form of repping the artist. Consider it to be the digital version of wearing a band tee-shirt to a party. Concerts are also becoming digital, and NFTs are becoming a part of this space as well in the form of an enhanced experience.
While so much of the music industry is shifting to blockchain-based technology, there is a lot more that can be done. As more dedicated NFT platforms cater to the music industry, artists of all statures will be able to take advantage of the NFT movement and take a step towards the future. While some critics may call the involvement of NFTs in music a gimmick, it is safe to say that this trend is here to stay long-term.