At the close of 2021, the Collins Dictionary named “NFT” as the word of the year.
Non-fungible tokens have already rocked the art world and have become a household name. When you say “NFT”, most people will at least guess that you mean some kind of computerized image.
However, NFT technology has the same or greater adoption potential in areas outside of visual art, although these usage scenarios are relatively unknown.
According to Footprint Analytics, music NFTs currently represent only 0.11% of the total NFT market. However, this is likely to change.
According to IFPI, the global music industry generated $ 21.6 billion in revenue. Meanwhile, capital markets are realizing the potential of musical NFTs.
- June: Opulous, the first platform to launch NFT with music copyrights, raised $ 6.5 million.
- August – NFT Market Catalog Raised $ 2.2 Million in Funding.
- November: Music platform NFT Royal, which helps music artists build web3 communities, secured $ 55 million in Series A funding from a16z,
What is a Music NFT?
Unlike an ordinary unit of cryptocurrency, each NFT can represent a single digital asset, serving as proof of ownership, while the token appears similar in the cyber world. They are unique digital collectibles that can represent many categories of digital assets, including paintings, sounds, videos, and game items. Music NFTs contain music files
The history of the music industry, from vinyl records to tapes, walkmans to Spotify, shows a clear trend line or technology that makes music more and more convenient, and NFTs will continue this trend.
How NFTs Will Change the Music Industry
The high price of music NFTs compared to the cost of regular listening is attractive to independent musicians. On Spotify, the average “per play” pay to artists is $ 0.003 to $ 0.005, which works out to just $ 3,000 to $ 5,000 for 1 million plays. On the other hand, music NFTs can easily fetch tens of thousands of dollars because [how is this economically possible?]
The key difference is that, in addition to price per play, music NFTs can also earn money based on their unique value to an individual, such as a fan or collector.
Music NFTs often have other interesting “bonuses” attached to them in addition to commercial ownership of digital collectibles.
On the one hand, buyers can use musical NFTs as a capital investment, where the artist relinquishes a portion of ownership of the song, giving the buyer a real return on their investment.
On the other hand, the artist can also add benefits to NFT music, such as concert tickets or physical products, which provide the buyer with a memorable experience.
Music NFTs can fund crowdfunding launches, which is a great opportunity for independent artists. For example, Danny Saucedo, a Swedish artist, has released several singles with the help of fans.
Additionally, those who help crowdfunding artists can also receive NFT as proof of their commitment and action within a group, which could lead to more benefits later, such as fan-only releases, the opportunity to participate in pre-sales, and more.
Top 3 Platforms for Musical NFTs
While NFT platforms still support relatively few public broadcasters, NFT music platforms already have some well-known artists.
While record companies control copyrights and Internet companies control traffic, NFT music platforms connect artists with fans directly, democratizing music through fan-determined pricing and putting the industry out of the box. music firmly in the hands of ordinary people.
A new era for creators
The NFT market has exploded, penetrating every corner of the global art market in just one year. The rise of musical NFTs has the ability to do the same with recording while giving artists more control over their work.
- January 10, 2021, Lesley
- Data source: footprint analysis
This report was presented by Footprint Analytics.
What is the Footprint?
Footprint Analytics is an all-in-one analytics platform for visualizing blockchain data and discovering insights. Clean and integrate data chain so that users of any level of experience can quickly start researching tokens, projects and protocols. With over a thousand dashboard templates plus a drag and drop interface, anyone can create their own custom charts in minutes. Discover blockchain data and invest smarter with Footprint.
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