Are NFTs The Future of Music?
While the NFT market matures, the urgency to capitalize on this new digital asset proves it’s not just a phase. NFTs are helpful technology that can shape the future of multiple industries, music included.
Artists realize this, and it’s why we’ve seen prominent musicians like Grimes, DeadMau5, Kings of Leon, and Mike Shinoda hop on the NFT train recently.
Why are Musicians Getting Involved with NFTs?
We’ve covered extensively how streaming services and record labels rake in massive profits but don’t distribute them to artists fairly. It’s gotten so bad that in April of this year, more than 150 musicians, including Paul McCartney, Kate Bush, Shy FX and Kano, wrote to UK Prime Minister Boris Johnson calling for updated legislation to protect artists better in the new landscape. They pointed out that “songwriters earn 50% of radio revenues, but only 15% in streaming.”
The lack of revenue is why musicians rely heavily on touring to break even. But concerts continue to face an uncertain future in the face of the pandemic. As a result, artists have turned to NFTs for an alternative income stream unaffected by external factors like label contracts and world events. Mike Shinoda from Linkin Park spoke about this after receiving a $10,000 bid for one of his NFTs. He stated, “even if I upload the full version of the contained song to DSPs worldwide, I would never get even close to $10,000, after fees by DSPs, label, marketing”.
NFTs allow musicians to cut expenses and distribute what they want anywhere globally via the blockchain. NFTs also help artists save time by selling directly to their fans, without asking supporters to visit multiple websites, access music through paid streaming services, or participate in competitions.
Traditionally, once the artist publishes their work, they do not have a way to track each subsequent transaction based on their work. This would particularly sting artists when their “first cd” or “first signed t-shirt” sells for more than they received for it.
Because NFTs are tokens that represent the art, musicians can keep the rights to their creations. Through the blockchain, artists can track all subsequent transactions and adjust how much royalty they want to earn each time their NFT sells. And because smart contracts power everything, artists can receive payouts perpetually and automatically!
Why Would Fans Buy NFTs?
Fans can support their favorite artists from anywhere globally over the blockchain, knowing that the majority of profits go back to the musician. What’s more, the ownership status of the buyer is etched on the blockchain, giving the fan digital bragging rights forever.
However, NFTs offer more than just bragging rights and can benefit the buyer in the long run. NFTs are rare because artists often release a limited amount of them. This transforms the NFT into a digital collectible that can fetch a pretty penny down the line.
Music NFTs are Here To Stay
At first, it’s difficult to wrap your head around the concept of NFTs. But once you realise the benefits, you begin to understand why the technology will disrupt the music industry forever. Artists don’t have to share profits with distributors, labels, and publishers — the open and accessible blockchain replaces all of them. And fans get to support their favorite artists directly, earn bragging rights, and own a scarce asset that appreciates with time.
Purchase Your Favorite Artists’ NFTs on MOZIK!
The music industry is in a state of flux. Artists aren’t earning what they deserve and fans are at the mercy of distributors and streaming services. Industry fundamentals are flawed and NFTs can be the catalyst for change.
MOZIK is a decentralized music NFT platform that aims to build a healthier and fairer music economy ecosystem. Through the MOZIK app, users can purchase their favorite artists’ NFTs and level the playing field for musicians and themselves alike.
Mozik is a decentralized music NFT platform aiming to build a healthier and fairer music ecosystem. Through the decentralized NFT platform, Mozik adopts blockchain technology to register earnings through music copyright, super-star IP, and IP derivatives on-chain. All the participants in the music ecosystem, including creators, publishers, customers, and fans can fairly participate. Through Mozik’s platform, artists will be incentivized to create more and better quality music. With lowered publishing cost and higher engagement from music fans, all participants can share in the rewards, and create a healthier and fairer music ecosystem.