How NFTs Are Shaping the Way Music Sounds?
Undoubtedly, NFTs have come as a breath of fresh air to the music industry. It offers performing artists a good source of income and frees them from the control of streaming giants. Today, various platforms like OneOf, Royal, Fanaply, Opulous, and Serenade are redefining the future of music. Let us take a deep dive into Music NFTs and their impact on the creator economy.
Limited-Edition Drops
Rappers and singers can directly sell their songs and albums as NFTs. They can drop their tracks on blockchain-powered platforms. Fans will make bids on the numbers of their favourite artists by using digital tokens. Generally, independent artists have to apply for a drop. They have to submit details like their name, music genre, the number of monthly listeners, and the status of the songs (available on major streaming platforms, complete, and unreleased).
For instance, OneOf, a platform built on the Tezos and Polygon blockchain offers OnePass for music aficionados. They get benefits like access to premiere drops, invites to events (virtual and in-real-life), discounts on tickets and passes, branded merchandise, and free NFTs.
Sharing of streaming royalty rights
Artists and fans can become co-owners of albums and songs. Hence, NFT collectors will get exclusive access to streaming royalty rights. Musicians can sell a certain percentage of royalties of their songs. They can also offer bundles (special tracks, tickets to concerts, live shows, and merchandise).
Fans of artists purchase these streaming royalties by utilizing digital tokens. Later, they can claim royalties after they have accrued. Moreover, the payouts will vary from one artist to another. Generally, royalty percentages from streaming are divided tier-wise. Buyers of Music NFTs also get a license for non-commercial usage of the songs
Music Loans
Artists can push their careers forward by opting for music loans backed by future royalties. They can launch new projects based on their future revenue projection. This protects artists from entering into unfair deals with labels (who have disproportionate control over the music). Investors in music can stake their digital assets and earn high returns. Fans who buy Music NFTs will receive royalty payments, backstage passes, merchandise, and gig tickets.
Various options to sell digital collectibles
Moreover, platforms are offering self-service NFT production facilities for artists. Hence, they can upload their albums/ songs and price them. Later, they can set the sale mechanism and schedule the release time. Performing artists can choose options like Limited Edition (each song has a unique edition number), auction (music directly sold to the highest bidder), and open edition (unlimited number of songs available for purchase in a limited window).
Decentralized music creation
Multiverse platforms will emerge and there will be 2 stakeholders (Players and Artists). Artists can tokenize their songs as collectible song NFTs or game song NFTs. They receive royalty payments every time their song is used in a game. On the other hand, collectible song NFTs can be directly traded on the NFT marketplace.
Further, users can create song mixes (a combination of soundtrack loops) by utilizing a drag and drop mechanism. Players will earn rewards after recognizing instruments within song mixes. There is also a Player-vs-Environment (PVE) mode where the fastest player to recognize the instruments played by bands will earn the biggest prize.
Subscription Plans
Artists can create a profile and list their services (custom-made music, live performances, and ready-to-use tracks). Producers, composers, and singers can purchase monthly and yearly subscription plans and get access to features like an exclusive portfolio, direct selling of music tracks, recurring payments, and sale of tickets for live concerts.
Conclusion
NFTs have empowered independent artists. They can build a strong community and get more value from their work. Fans who purchase Music NFTs get special privileges in the form of (exclusive content, meet-and-greet opportunities, merchandise, and backstage access to concerts).
Hence, musicians can engage better with listeners by performing in an immersive environment. NFTs will serve as the point of entry for fans to attend their concerts and performances. The market cap of NFTs will surpass $80 billion by 2025. Want a giant share of this valuable opportunity? It’s time to mint Music NFTs and tokenize your foot-tapping songs.
