Find out about how this revolutionary technology is reinventing the music industry before our eyes.
The music industry has been inextricably linked to technology since the discovery of sound recording in 1877. Technological innovations have influenced how music is made, played, saved, distributed, and enjoyed, from the first discs to streaming services like Spotify and Apple Music, from the birth of record changing to the rise of modern electronic sound.
Non-fungible tokens (NFTs) swept the music industry this year. Hundreds of singers and musicians, including artists like Grimes and iconic bands like the Rolling Stones, were drawn to the new technology. Some of these artists have made millions of dollars by selling tokenized versions of their tunes, digital art, or bundles of virtual and real-world products. NFTs and fan tokens have the potential to completely transform the music industry. We are witnessing a significant and long-lasting shift in how musicians create music and interact with their fans.
We may let the early figures speak for themselves using NFTs. “Even if I upload the full version of the contained song to DSPs globally (which I can still do), I would never make even close to $10k, including costs from DSPs, label, marketing, and so on,” Linkin Park’s Mike Shinoda recently tweeted. There isn’t much that can’t be tokenized. Music tracks, artwork, text, apps, files, and even physical objects like concert tickets or one-of-a-kind goods can all be accompanied with their own NFTs, allowing artists and content creators to provide new experiences to their audiences. The release of Kings of Leon’s When You See Yourself was an early example. In March, the album was reissued as an NFT, featuring an animated cover and limited-edition vinyl. Those who purchased the $50 package were automatically entered into a lottery to win VIP concert tickets and other prizes.
Then there’s the way that NFTs are making the music industry more democratic. Emerging fan-fueled equity crowdfunding is one of the most visible forms of it. It’s essentially music investing for the masses. Imagine investing in a Kickstarter campaign for your favourite artist and receiving a share of the proceeds instead of goods or concert tickets. It works wonders for famous musicians with a multimillion fan base, allowing them to raise funds for songs and albums with a single social media post.
New revenue models and the democratisation of the industry are in great demand. The fan funding model, when combined with NFTs and decentralisation via blockchain technology, has the potential to transform how music is generated, funded, and promoted. This has the ability to enable musicians achieve full freedom and usher in the end of the era of major labels. Would you invest in your favourite artist’s songs if you knew they’d be adequately compensated and you’d get a cut? Would you like to have a voice in what kind of music is released so that you may hear more of the songs you enjoy? “Yes,” is most likely the answer.