NFTs and the Music Industry
Written by WOM writer on October 14, 2022
NFTs have remained part of cryptocurrency and web3 culture for the last couple of years. However, we’re seeing a huge increase in NFTs involved in gaming and online real estate. NFTs can represent all kinds of different things and can hold value. Think of them as rare collectible cards, each with a different value.
Aside from gaming, the music industry is taking NFTs seriously. The music industry is arguably the oldest entertainment sector in history. The music business has experienced the most technological advances of all time.
Now, music can reach audiences across the globe, enabling almost anyone and everyone to experience modern music. In addition, how music distribution has evolved is astounding. The music scene is evolving from CDs and vinyl to streams and NFTs.
Web3 and the Music Industry
For the few years, they have existed, NFTs have mostly dominated the game industry. However, we’re now seeing a shift to NFTs in the music world. With advances in music and distribution came an easier transition to more technology.
Musicians make money in a digital format, meaning there is less money for the artists and physical music (CD and vinyl) manufacturers. With the assistance of Web3 and other platforms, there will be a whole new chapter of the music industry, according to the CEO of MetaTokyo.
Takayuki Suzuki, the CEO of the huge Web3 entertainment studio, stated that he finds it difficult to find good music, but now this accessibility is at your fingertips all the time.
Web3 tools have allowed creators to develop an existing audience and transform it into a community or fan base. With the addition of merch and concerts, music artists have truly dedicated fans. Speaking to Cointelegraph, Marcus Feistl, the operations officer of NT music marketplace Limewire, said this:
“The music and creator industry is certainly on the verge of a step change, moving from a Web2 model focused on content consumption to a Web3 model focused on content ownership. Artists are just beginning to find their way to best utilize Web3 to interact with their audience.”
When looking at NFTs and how they work, there is the newfound ability to form a community. For example, NFT holders of Bored Ape Yacht Club are instantly formed into a community due to the shared possession of an NFT. The rise of DAOs has changed how these communities operate, with huge opportunities for music artists looking to take a space in Web3.
NFTs are Changing the Music World
The music industry has been slow moving at first glance, but behind the scenes, it has been anything but. The music scene has consistently had to keep up with world trends, changing how we consume music.
As we mentioned, from physical ways of listening, we’re now completely digital (for most people, anyway). The music industry has had to be willing to try new things and ‘get with the times, so to speak.
Web3 music platforms have become a key place where the music industry can develop, and artists and businesses can sell themselves.
Once an artist has a fan base, there is a high chance that Web3 enthusiasts will take an interest in their NFT collection and potential merchandise. With an NFT collection, merchandise can often be present within the collection, usually in digital wearables such as in Decentraland and The Sandbox.
Music NFTs are proving successful and disrupting a previous music industry model. Previously, artists would record their songs, sell their records, go on tour, and sell merchandise. Of course, with the element of social media, there is more of a community fan base available to fans and artists. However, with music NFTs, this has been entirely disrupted.
Artists can bypass the production, funding, and costs of touring by going straight to the fans, allowing them to engage with their fan base. Now, artists can make an effort to engage with their community and build important relationships, allowing fans and artists to benefit from NFTs.
Artists benefit financially from selling their NFTs and forming a supportive, competitive fan base. Fans benefit from NFTs by accessing certain benefits and experiences that they may not have had access to before and building a close relationship with their favorite artist. Oh, and they can sell these NFTs for a great price afterward.
Can NFTs Form Communities?
We’ve seen a rise in NFT sales through play-to-earn games, but move-to-earn games such as Stepn have incited a community feels with users. By purchasing an NFT to play the game, you are engaging with thousands of other NFT owners in order to become fitter and healthier. This is proven, as hundreds of Stepn clubs are forming relationships and communities around the world.
NFTs are establishing communities between artists and fans in the music industry. A community refers to two-way communication allowing each side to benefit.
This includes financial benefits. The use of blockchain, NFTs, and the community is changing the music industry. Web3 platforms are creating the push to encourage artists to delve into a community-driven experience in the metaverse.
Source: playtoearndiary.
