The next big wave in the music industry will be from NFTs (non-fungible-tokens), a product of blockchain technology. NFTs provide artists and musicians with a new avenue for buying, and selling, music, art, and royalties. NFTs can be customized to include specific details about artist royalties, licensing agreements, and ownership rights. This allows artists and creators to directly engage with fans and transparently monetize their work.
NFT Types
The primary types of NFTs are streaming and ownership. Ownership NFTs give the buyer full ownership rights to a specific and unique digital collectible. This ownership can extend to receiving royalties and even potential future earnings from the NFT. Streaming NFTs give owners exclusive access to content such as new tracks, videos, unseen footage, and experiences at live events.
NFTs, Artists, Fans
With NFTs, artists can connect with their audience on a deeper level, offering fans the opportunity to directly support them while receiving a digital collectible. This technology creates immense potential for upcoming, independent artists and established musicians. NFTs have created a new path for artists and creators in the music industry that provides more control over their work.
Artists like deadmau5, Snoop Dogg, and Steve Aoki have already adopted NFTs, paving the way for other musicians to utilize and explore web3 technology.
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Electronic Dance Music and NFTs
NFTs have started to transform the electronic dance music (EDM) industry, offering artists and fans new and exciting experiences. Big-name artists like Steve Aoki and 3LAU have spearheaded this trend, capitalizing on the significance of NFTs.
One of the key benefits of NFTs in the music industry is the creation of unique and valuable collectibles. Artists can release limited edition NFTs that represent ownership of a specific piece of music or artwork. These collectibles allow fans to support their favorite artists while also owning a piece of digital history.
Steve Aoki, for example, has released NFTs featuring exclusive tracks and visual artwork, creating a new way for fans to engage with his music. 3LAU sold an NFT album that included unreleased music and access to exclusive events. The tokens sold were categorized into tiers–each tier represented a different level of access and perks.
Related: 3LAU NFTs
Sales and Royalties
NFTs provide a way for artists to receive royalties directly from their fans. Using NFTs and blockchain technology, artists can eliminate the intermediary, such as a record label or streaming platform, and have more control over their compensation.
Artists can receive royalties and residuals directly from the initial sale and future resales of their NFTs. These payment terms are part of the NFT creation process using smart contracts.
Related: Royal Music NFT Platform
NFT Marketplaces
One of the key impacts of blockchain technology in the music industry is the shift towards NFT marketplaces. These platforms are dedicated to highlighting music NFTs, allowing artists and fans to directly engage in the digital music collectibles market.
The majority of music NFT sales are held on platforms such as Nifty Gateway, OpenSea, SuperRare, and LGND Music. These platforms focus on providing a seamless and secure marketplace for artists and fans to connect and transact.
Rarible is an NFT marketplace that caters to those new to NFTs. New or independent artists and digital creators will find the platform more suitable to showcase their work. Rarible is more “user-friendly” than some of the other more popular NFT marketplaces.
Related: 6 Best NFT Marketplaces in 2023
Up and Coming Music NFT platforms
There are a few new NFT platforms in the music NFT space to keep an eye on.
Catalog
Catalog allows artists to mint and sell their music NFTs directly to fans.
Sound.xyz
Sound.xyz focuses on providing a seamless experience for artists to monetize their music by creating NFTs.
Foundation
Foundation offers easy-to-use creator tools and a marketplace where artists can showcase and sell their digital work.
Arpeggi
Arpeggi provides web3 tools that allow artists to easily collaborate, create, and mint music NFTs.
Formfunction
Formfunction specializes in minting 1 of-1 NFTs and helping independent artists and musicians create sustainable incomes.
Triptcip
Triptcip provides a platform that combines electronic music and real-time visual synthesis for NFTs.
What’s Next for Music and NFTs
The growing popularity of NFTs and blockchain technology in the music industry has created exciting prospects for both artists and fans. While potential drawbacks and challenges still exist with NFTs, the recent adoption of digital collectibles is reimagining how music is created and consumed, and valued.
Related: Music Metaverse