The music industry is one of the vibrant subsidiaries of the entertainment industry. According to Statista, the global music industry recorded almost $62 billion in total revenue last year.
From history, music has always evolved with man. Music was played with gramophones in the '90s, this is unlike now when people stream and download music.
Following this trend, the music industry took a revolutionary turn last year when artists were creating music NFTs. Kings of Leon, an American rock band, were arguably the first to mint an album as an NFT.
While music NFTs might be becoming the order of the day, it is challenging the traditional structure of the music industry. This disruptive nature of music NFTs is pointing to an important question:
"Will music NFTs take over from streaming platforms and record labels?"
A musical production has several parts: the video, sound recordings, the beat, the cover design, the album, the lyrics, the song, and the IP rights. All these several parts can be minted—or created—and bought as NFTs.
Music NFT is simply collectible audio files. In reality, there is no exhaustive list of what a musician can mint as an NFT.
Early last year, Jacques Greene—a popular Toronto-based musician—auctioned the publishing right to one of his new songs titled "Promise" for almost $12k.
Music NFT is developing fast and introducing new possibilities in the entire music industry. Here are the current use cases:
Popular musicians like Tom Gray and Nadine Shah have aired their displeasure—and those of their other colleagues—about the rate streaming platforms pay them.
Since artists claim the income they get from streaming is not worth it, research shows that the only major way through which they generate income now is through concerts and other performances.
Fortunately, the NFT music industry is becoming a game-changer for most musicians. Some are making up to 10X the ideal revenue they expect from streaming platforms off music NFT.
There is a deep emotional connection between musicians and fans, and NFT music is bringing them closer than ever before. Music NFT allows the fans to buy and own any musical clip or item of their favorite musicians.
Since every NFT is unique, this gives the fans the special treatment of owning the property of their musicians. This is a dream come true for most fans. Sometimes, music NFTs are accompanied by having a brief moment with the fan for a shout-out or a short discussion.
In an interview with Daily Nation Today, Daniel Allan narrated how he spends up to six hours a day conversing with his fans on his NFT Discord community.
On the Discord channel, he gets to answer some of the questions his fans have, listen to their feedback, and any contribution they have to make. Not long ago, Daniel sold 50% of his royalties to his fans for 50 ETH.
According to the BBC, only 13% of royalties get to the artists. Meanwhile, 30% or even goes to the record labels. The other percentages are shared among retailers, producers, promoters, and publishers.
A lot of artists have found this allocation unfair since they are the ones at the core of productions. This was the major reason David Marks, an ex Beach Boys guitarist, sued Universal Music Group last year.
Fortunately, music NFT has changed the tides for musicians. Unlike before when musicians would subdivide the royalty percentage—which is always between 5% to 10%—among labels and producers, they now have it all to themselves.
This has helped a lot of musicians to receive a payment that is commensurate with their creativity, thereby fueling their passion to do more.
Musicians make most of their revenues from holding and performing at concerts. However, CNBC reported that 12% of the people who buy concert tickets online always get fake tickets.
What these frauds do is quickly buy up almost all the concert tickets from the original, thereby forcing people to buy the tickets from the secondary markets where they'd sell fake tickets to them at higher prices.
But NFT ticketing would be bringing authenticity to music concerts, this is perhaps one of the most exciting use cases of NFT in the music industry.
Earlier this month, Coachella announced that it will be selling NFT tickets which will grant the holders lifetime access to their yearly festivals.
Swedish House Mafia, a music group, announced last year that it would be minting NFT tickets for its concert this year's summer.
Explore: Mariah Carey Fly With Me NFT - a private jet to the Songwriters Hall of Fame Induction Ceremony!
Quite a lot of investors in the streaming platforms and record labels have their arms at akimbo, waiting for the bubble of music NFTs to burst. But are music NFTs only mere bubbles?
Some critics have argued that music NFTs are only for popular musicians like Beyoncé and Adele. But Young and Sick, a not-too-popular musician, only had 27k IG followers when he sold his NFTs for $865k.
Moreover, the recent strategic partnerships between blue-chip record labels and NFT platforms is a green light that NFT music is the next big thing.
On the 31st of January this year, Warner Music Group—one of the top-three labels globally—inked a partnership agreement with OneOf - a music-focused NFT platform.
While music NFTs are decentralizing the authority in the music industry, it won't displace streaming platforms with a finger-click - at least, not anytime soon.
Nonetheless, the game-changing reward implication of music NFTs for both artists and fans has made it obvious that it is not a bubble. Rather, music NFTs would be the future of music.
With the bullish rise of music NFTs, NFTify has proved to be the best NFT platform to create and sell your music NFTs. At the moment, we have about 550 music NFT stores built on our platform.
This number is multiplying because we grant independent musicians the ability to kickstart their own NFT storefront and make limitless revenues for themselves. It's easy to set up a store on NFTify: signup and connect your wallet.
Then you can select your preferred blockchain network—among BSC, Ethereum, and Polygon—and upload your music NFTs. For musicians who already have their NFT for music on other NFT marketplaces, you can simply import the collection to your NFTify store once and for all.
If you like teamwork, you can have your collaborators with you on your NFTify store. As the main owner of the store, you'd have the power to dictate how many collaborators can have access to the store and how much revenue each can receive.
Be the first to know about platform updates & exclusive promotions.