Music and Web3 in 2024: Towards A Brighter Future For Artists
In Brief
Music NFT catalyzed a seismic shift rewarding musicians directly for their artistry. Today, the market is at a crossroads: NFTs initial promise is overshadowed by the need for a more sustainable approach.
NFT protocols have catalyzed a seismic shift in rewarding artists directly for their artistry, disrupting conventional revenue models and ushering in a new era of creative ownership. In the past, several pioneering artists harnessed the potential of Music NFTs to redefine creative boundaries and ownership paradigms. Eminent figures like Grimes have lucratively sold her artworks and music as non-fungible tokens, demonstrating immense earning potential. Artists such as Kings of Leon, Aphex Twin, and 3LAU have likewise delved into the realm of NFTs, offering exclusive experiences and assets to their fan bases.
What Does Music Have to Do With NFTs?
An NFT represents a distinctive digital asset on the blockchain, available for purchase and trade. Unlike conventional NFTs, primarily comprising visual content, a music NFT encompasses both visual and auditory elements.
Ownership and accessibility transparency are key advantages of possessing assets like NFTs on a blockchain. Due to the decentralized nature of blockchain, virtually anyone can participate.
Opportunities Of Music NFTs
The royalties from mainstream music platforms such as Spotify are exceedingly meager. To put it into perspective, 1,000 streams will earn somewhere between $2-$4. Another case is 1,000 individuals purchasing a single NFT for, say, $5 each.
Furthermore, through the initiation of music NFTs, artists engage and interact with their fans in such a way as to recognize loyalty with unique content. What’s really important is that there’s no intermediary between the artist and fans like music labels.
Another advantage of music NFTs is that the original artist receives payment each time an NFT collection is sold. With on-chain music NFTs, there is accountability for every resale, and thanks to smart contracts, a portion of the proceeds return to the original artist’s digital wallet.
Furthermore, fans may choose to hold onto an NFT in anticipation of its appreciation in value.
How Can Music NFTs Be Used?
Given the versatile nature of tokenization, music NFTs can embody entire music albums, separate songs, MVs, tickets to concerts, artwork by music creators, VIP access tickets, etc.
Furthermore, some musicians leverage music NFTs to fundraise for their upcoming art.
Implications for the Music Industry
The advent of Music NFTs carries profound implications for the music industry:
- Direct Fan Engagement: Artists can circumvent intermediaries to directly engage and monetize their fan base by offering exclusive content and merchandise.
- Royalty Transparency: NFTs ensure transparent royalty payments, benefiting artists with consistent revenue streams.
- Collectible Music Assets: serve as coveted collector’s items, fostering a burgeoning market for music memorabilia.
- Creative Freedom: NFTs empower artists to explore innovative revenue streams and collaborative ventures, transcending traditional constraints.
Legendary Music NFTs
3LAU, also known as Justin Blau, achieved a significant milestone when he successfully auctioned off an NFT collection for $11.6 million between February 25-28, 2021. In celebration of the three-year anniversary of his album Ultraviolet, Blau introduced the Ultraviolet Vinyl NFT Collection, comprising 33 NFTs, on Dshop. Among the NFTs offered, the highest-priced one included the exclusive opportunity for the purchaser to collaborate with Blau on a song, sold for $3.6 million. Blau, an early cryptocurrency enthusiast, has amassed over $12.7 million in primary sales from NFT auctions spanning his 3LAU and SSX3LAU releases.
Collaborating with 3LAU, Nas ventured into the NFT realm for the first time, utilizing the newly launched Royal platform by the renowned DJ. This groundbreaking collection, the first live NFT sale on Royal.io, featured 1,870 NFTs distributed across two separate releases. Both drops achieved remarkable sell-out times, generating a cumulative revenue exceeding $560,000. Secondary market activity quickly intensified, with the project gaining traction on OpenSea, accumulating over 270 ETH ($725,000+) in sales volume.
In March 2021, Kings of Leon made history as the inaugural rock band to release their album as an NFT. Titled “When You See Yourself,” the album was distributed in three distinct token formats. The first token presented a unique album package, while the second token granted access to live show benefits. Lastly, the third token featured exclusive audiovisual artwork. In January 2022, Royal & Nas marked a significant milestone with the swift sell-out of their inaugural NFT drop.
In essence, the convergence of Music and NFTs heralds a paradigm shift in the industry, offering boundless opportunities for musicians and enthusiasts alike.
What’s Up With Music NFTs in 2024?
In 2024, the music NFT market grapples with challenges stemming from its rapid expansion and subsequent contraction. The latest news from the collaboration of Web3 space and the music industry giant Hans Zimmer relates to his creation “Anthem for TRON,” aptly christened the “Web3 Generation” theme. It endeavors to encapsulate the tumultuous journey Justin Sun, the man behind TRON, has navigated. This includes legal battles, notably with the U.S. Securities and Exchange Commission (SEC), where Sun faces fraud and market manipulation allegations.
Nevertheless, such events regarding Music NFTs are rare in 2024. The NFT craze several years ago swept across various industries, including art, gaming, and music, and inspired a wave of excitement and curiosity. One of the critical challenges facing the music NFT space today is the market’s struggle to regain its footing after the initial surge. The NFT market’s rapid expansion and subsequent contraction led to a saturation of offerings and a decline in overall demand. As a result, many artists eagerly embracing NFTs to tokenize their artistry have encountered difficulties in effectively navigating this evolving landscape.
Today, the music NFT market finds itself at a crossroads. The technology’s initial promise is overshadowed by the need for a more sustainable, long-term approach.
It is essential to recognize that the journey of music NFTs is far from complete. While the current state may reflect a period of reevaluation and recalibration, the potential for NFTs to transform how music is valued and experienced genuinely remains intact.
Despite initial enthusiasm, market saturation and declining demand pose obstacles for musicians seeking to leverage NFTs effectively. However, amidst this period of reassessment, the transformative potential of NFTs to reshape music valuation and consumption remains undiminished.
Disclaimer
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About The Author
Zhauhazyn is a copywriter and sociology major. Fascinated by the intricate dynamics of Science and Technology Studies, she delves deep into the realm of Web3 with a fervent passion for blockchain.
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Zhauhazyn is a copywriter and sociology major. Fascinated by the intricate dynamics of Science and Technology Studies, she delves deep into the realm of Web3 with a fervent passion for blockchain.
