HomeNFTThe power of NFT in music

The power of NFT in music

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Matthias Tengblad – Co-founder and CEO of Corit , digital music distributor in Stockholm; Emil Angerwal is the co-founder and chief operating officer of Corite.
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The dynamics of music diffusion has changed over the past decade as music artists and record companies try to keep up with the times and exploit new monetization opportunities. Consequently, major music streaming platforms such as YouTube , Apple Music , and Spotify wield a lot of power today. They and a few others control the industry, which is expected to reach a $ 23 billion valuation by the end of 2021.

Streaming platforms are essentially the glue in the spread of modern music. However, while they have greatly empowered independent artists, their dominance undermines decentralization, which in turn affects artists’ incomes. Thus, the use of non-fungible tokens () to ensure transparency and consensus in the sector is a step in the right direction towards empowering artists on a global scale.

Funding music, not labels

Digging a little deeper into the situation between the artist and the music label, monolithic enterprises determine how much artists are paid. They also influence their musical styles as well as their public image. With , artists can reduce their addiction by receiving funds directly from their fans.

Fan-funded models have demonstrated the ability to sell digital goods, including music, to promote artists. By ensuring transparency and by cutting out middlemen, NFTs help increase music revenues and can end artists’ dependence on record companies.

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When it comes to collecting revenue, NFTs can streamline the process as all transactions are recorded on the blockchain. This is in stark contrast to corporate royalty procedures, as they can appear vague and suggest the possibility of artists being brought into circulation.

In the NFT setting, transparency is maintained through unique metadata and separate source codes associated with the artist’s music. And given that artists control the ownership rights included in the ledger, they can also sell them and transfer them to a third party if the need arises.

Fun for fans during isolation

The music industry was devastated during the coronavirus pandemic. Subsequent shutdowns are estimated to have cost the sector tens of billions of dollars in lost profits. The changing circumstances brought about a watershed moment that caused many music artists to rethink their reach strategies, and it was during this time that NFTs became a viable income source.

Multi-platinum artist Marshall Bruce Mathers III, also known as Eminem , was one of the first famous artists to pick up the NFT bandwagon. Unsurprisingly, he raised £ 1.3m ($ 1.7m) from his first NFT Shady Con collection.

In addition to selling songs and albums, artists who want to use NFT can benefit from NFT concerts, for example the Swedish Home Mafia has already done by partnering with Living Nation . They are easy to stream and can be used to monetize live recordings. Bonus content and exclusive discounts can also be provided through the NFT systems.

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Promotion of investment in and music

In previous decades, investment in music was mostly limited to accredited investors and music labels. But with the advent of NFT, loyal and committed fans have the opportunity to support their favorite artists by investing in their songs.

In addition, NFT technology allows you to sell part of a song to an investor. With these opportunities, people can actively sponsor and promote promising artists and earn royalties for their work as their popularity grows and their songs gain traction. As such, investing in NFT is a good way to diversify your portfolio and invest in something that you think can grow rapidly while supporting new music and at the same time.

What’s next when it comes to NFT in music?

Today’s NFT and blockchain-based projects give artists great opportunities when it comes to generating new revenue, getting fair discounts, controlling streaming speed and copyright, and rewarding active fans as contributors, not just consumers.

In short, non-fungible substances can be an effective elixir for artists seeking to free themselves from the exploitative distribution of music – and this elixir is already in high demand throughout the industry.

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