Spirit labs
May 11, 2022
Music NFTs - A Game Changer For the Music Industry
  • #Spirit Tech
  • #Blockchain
  • When some virtual art began selling for millions of dollars a few years ago, NFTs sprang onto the scene. The music industry has also jumped on the train of NTFs in 2021 since then. Although the Music NFTs are still in their infancy, the ability of monetizing artworks without the need for existing music publishers or platforms makes this a potential technological advance.

     

    Here's all you need to know about the Music NFTs and its benefits.

    What Are Music NFTs?

    A Music NFT (non-fungible token) is a digital certificate of ownership of a musical piece encoded into blockchain technology that can be traded. Like any other crypto tokens, Music NFTs are placed in a distributed network for safety. Through NFTs, artists would reclaim full ownership of their music without sharing the profits with middlemen like music labels or agents.

    How do Music NFTs work?

    It depends on the musician or the band to decide what content they want to deliver to their fans. This could be merchandise, concert tickets or audio files, etc. Then they choose the blockchain to mint these musical NFTs. And the next step is to choose the NFT platform to use. Once they have identified their preferred platform, they will notify fans of the NFT launch. They will then set a price for each NFT product in their collection.

     

    Music NFTs in particular and all other NFTs cannot be reproduced. It is at the discretion of the music producer that they may distribute this asset in one of two ways.

    • The first way is that they can decide to sell, for example, tracks as audio files, just once. Here, the highest bidder will be the owner of the audio file, but they do not have the copyright.
    • The second way is that they can also decide to make a small number of NFTs from the same audio file and then sell them on the music market. It was essentially a new form of music distribution in which the middle record labels were eliminated.

    Every fan who buys NFT Music becomes the owner of their favorite musician’s works. NFTs can be stored in crypto wallets and sold to higher bidders if desired. The musician who created the NFT may no longer be able to sell it, but can still profit from the resale of the NFT. This is one of the many ways that NFT music can empower musicians.

    Types of Music NFTs

    There are a few different forms of NFTs in the music space. Let’s explore the significant ways NFTs have changed the traditional way you experience music. 

    Full Songs and Albums

    Exclusive songs and records are released in the form of NFTs, so users can own the first-ever favorite song. More and more musicians and singers have begun to apply NFTs to their products to connect with the listeners. Artists can include other rewards like newest songs, online calls opportunity and once in a lifetime music co-creation to attract target consumers.

    Digital Artwork and Photos

    Artwork plays a big part in a musician's artistry and their income. Digital artwork and pictures can include limited editions of album covers, posters, photocards and behind-the-scenes images.

    Tickets for Events

    The rising popularity of NFTs has created more use cases in the physical world, including access to in-person perks, luxury items, and even gig tickets. The advantage of an NFT ticket is that it helps prevent ticket fraud, misplacement and time-consuming operations.

    Video Clips from Your Favorite Performances

    Video clips of moments at music shows or your beautiful recordings of nature can be memorialized and encoded into NFTs. Therefore, you can have digital moments displaying in your home and even potentially sell them to others.

    Web 3.0 Era and The Value of Music NFTs

    The Web 3.0 Era gives people chances to make money from creating content. As a result, artists no longer rely on music labels and instead take full ownership and management of their artworks. In addition, creators have the ability to release their music to the public independently without being reliant on any streaming services. In other words, NFTs offer creators additional revenue streams and spaces for unique materials for fans.

    The Potential of NFTs in the Music Industry

    The underlying meaning of purchasing Music NFTs is not about buying the certificates to the audio or composition, but supporting creators against the existing system by paying for digital bragging rights. 

     

    Besides making commission-free profits, artists may definitely auction any type of their virtual assets. NFTs provide artists with a considerable range of flexibility to have an alternative method to benefit from their art including singles, full albums, merchandise, accessories, tickets, etc. 

     

    With that being said, the potential value of NFTs is proven. Major industry players start investing in NFTs and collaborating with digital solution firms to format their assets with blockchain development.

    The Effects of NFTs on the Music Industry’s Future

    With the rise of NFTs in many industries, the music business in this period is one where art creators may regain control of their works without the involvement of third-party intermediaries such as music labels or streaming platforms; therefore, artists can release their music in the independent way. In the music space, NFTs can be integrated with similar technologies for users to generate music in the metaverse as music collectives.

    How to Invest in Music NFTs

    The first thing about taking the very first step in minting NFTs, you need to surely forge a direct relationship with audiences also using blockchain technology. Remember that there are fees to launch a project and the same goes for purchasing a Music NFT.

     

    Before deciding to purchase any Music NFTs or start your own Music NFT project, be cognizant of the history and uniqueness of the artworks. The historic value of works does not only depend on the creativity involved or the overall quality, but it is also considered to be rare and distinctive. Following the mindset of finding a piece of art making sense to you, then deciding what combination of marketplaces, personal collections, and funds matching your risk tolerance leads to win.

     

    Some music NFT projects produce a large number of digital tokens which signify ownership of a digital copy of music and related art. Examining the successful NFT sales and understanding how the supply of these tokens have a direct relationship with the project's eventual worth. The basic result is that supply and demand are crucial factors to consider when purchasing music or creating a Music NFT for collectors' item value.

     

    Thereby reinvigorating some personality into what has become an impersonal relationship between musicians and fans in the streaming period. And artists should weigh the merits of delving into the project against the more traditional music platform. However, for those willing to do a little trailblazing, NFTs could be at the forefront of another evolution of the massive global music market.

    Top 3 NFT Marketplaces for Music NFTs

    These NFT marketplaces play as an intermediary between artists and investors. Therefore, if you are looking to invest or sell your music right now, here are 3 music-specialized NFT marketplaces for your reference. 

     

    • NFT Tone: This marketplace allows users to collect rare tracks, including early versions of that music recording. The platform has issued its native token TONE and runs on the Binance blockchain.
    • Opulous: The aim is to get fans involved in the success of the artists they love. Buyers will own part of the music rights through their tokens. These NFTs generate monthly royalty revenue. Furthermore, the NFT can become more valuable as an artist's career progresses.
    • Royal: This marketplace promises to sell the rights to the song as a musical NFT and introduce an original song by rapper Nas upon its debut. Users are encouraged to support artists whose popularity will increase over time.

    Conclusion

    Through music, NFTs are rethinking cultural and creative expression. Investing in Music NFTs requires a thorough assessment of social ethos, personal preferences and pop culture. 

     

    Remember to do the research before investing or creating your own Music NFTs. You can also reach IT solution companies who have experiences in the NFT Marketplace for know-how consultation. 

     

    Please visit our website www.spiritlabs.co for more information about blockchain related services.

     

    REFERENCES:

    • Blog: Top 7 Musicians NFT Projects: The Future of Music Industry.
    • Blog: Investing in Music NFTs
    • Blog: How are Music NFTs Changing The Music Industry?
    • Blog: How to Invest in Music NFTs

     

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