Non-fungible tokens are being adopted in revolutionary ways across the music industry, changing the landscape forever.
EDM artists 3LAU and Steve Aoki, alt-pop queen Grimes and country rockers Kings of Leon have all recently dipped their toe into the pool of NFTs, sparking media and music industry buzz and prompting many to wonder how this new technology will influence the way artists promote and sell their music. Can NFTs be integrated into the music industry in a safe and sustainable fashion, and how high can their value skyrocket?
The music industry is in an unstable state. The demise of physical media and digital downloads in favour of streaming services has made life harder for artists, with songwriters earning only a small portion of the revenues that their creations bring in. Now, with the coronavirus pandemic threatening live events, artists are in need of new revenue streams – this is just one reason why NFTs are holding such mass appeal.
NFTs allow artists to cut out the middle-men usually associated with the music industry and sell directly to their fanbase. Member of Linkin Park Mike Shinoda recently sold an NFT containing one of his songs for over $10,000 USD, before observing that he would never make that much money by digitally distributing the song in the conventional fashion. In addition to this increased profit share, the artist also has an opportunity to choose where the money goes. Kings of Leon’s NFT sale gave $600,000 to Live Nation’s Crew Nation fund, supporting crew members who are out of work due to the pandemic.
As the buzz surrounding NFTs continues to grow, artists are continuing to find new and exciting ways to utilise them. Watching their exponential rise, one thing seems certain: they are here to stay. Get in touch today to find out how MN2S can create, market and sell your NFTs.