How NFTs Are Revolutionizing The Music Industry?
By Kapil Rajyaguru
Since time immemorial, the creative art form of music has influenced every era of human civilization. The global revenue of the music industry is aimed to exceed $65 billion in 2023. However, the maximum portion of these profits will go to a select few famous platforms and top music publishers and very miniscule amount would go to upcoming musicians. Hence, various musicians have started trialing with NFTs as a novice way of music distribution and monetization. NFTs enable musicians to expand their reach globally at the same time help avoid fraud and other shortcomings. The advancement of momentum of NFTs in music industry is beneficial for both music creators and end users by considerably improving their relationships.
NFTs In The Music Industry
Music NFTs is a new path breaking way for musicians and end users to accumulate, sale and share music across the globe without intervention of any middlemen. NFTs can be created for single track, music videos or for an entire album. Interestingly, NFTs can also be used as tickets to concerts, merchandise or incentives.
Music creators can earn big moolahs from their creative efforts by producing NFTs that can be bartered on any NFT marketplace. Since the rights to ownership of NFTs are saved on the blockchain and cannot be altered, as a result music creators can earn higher royalties because of advent of music tokenization trend. When NFTs are sold the music creators get their apt compensation and at the same time end users can show their support for their preferred musicians while gaining economic advantages.
As more people in the music industry realizes the potential of NFTs, various use cases of NFTs can be seen emerging in the music industry. The following are types of NFTs in the music sector:
Music Albums And Songs As NFTs:
If a user wants to own the music of his or her preferred artist, they can do so by buying their NFTs. Various artists like Snoop Dogg are at the moment publishing complete songs and albums as NFTs.
Music Related To Digital Art:
As we know, the music industry depends on the works of art in the music sector, digital artworks include, posters, album covers and show photographs. All of these assets can be converted into NFTs to be traded for profit.
Ticket NFTs:
Ticket NFTs has proved to be a boon for music enthusiasts and artists. The advent of ticket NFTs has led to curbing of ticket frauds. Unlike printed tickets, which only have value on the desired day of the event, NFT tickets have value over time. The NFT tickets has value in secondary market and can also be resold at market value.
Video NFTs:
The concert or track videos can be minted and sold as NFT at standard prices. Fans not only record memories with these NFTs but they can also resell them for a profit.
Autograph NFTs:
Music fans can now create NFTs of the autographs of their preferred musicians and performers which can gain value over time. They can preserve these autograph NFTs as a memorabilia or resell them for profit at higher prices.
How Do Music NFTs benefit Musicians
Music NFTs enable the shift of music ownerships from large corporations to individuals. The advantages of NFTs for musicians grow beyond the development of a distinct audience base.
A Distinct Ecosystem
The monitoring of blockchain technology based NFTs is now simpler than ever. Music NFTs enable music creators to mold their independence and focus on their creativity.
Royalty Payments
We have seen that original creators are more often at a disadvantage when it comes to gaining royalties. But NFTs have facilitated a fair distribution of royalties in the music industry.
Transparency
Since Music NFTs are based on the blockchain technology offers seamless association of original music file with its various proprietors. Moreover, it keeps track of viewership and utilization of content for various platforms in a more transparent and effective manner.
Security
Smart contracts are executed to regulate the distribution of payments among right holders of the content. Smart contracts does not require third party intermediaries hence making the entire system more efficient and automated.
Conclusion
The increasing number of blockchain-based applications like NFTs has garnered interests of various important corporations. NFTs has offered various possibilities not only for the artists but also for music fans by eliminating the need for middlemen. Without a doubt it’s safe to say that Music NFTs will empower not only artists but also their followers in the days to come.
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