NFTs or Non-Fungible Tokens are taking the world of digital collectibles by storm. One such sector that stands to benefit greatly from the popularity of NFTs is the music industry. NFTs have the power to greatly boost the revenue earned by independent artists because they do not have to rely on any record label to market their music anymore. The artists have control over the release and pricing of their music.
In fact, we have already started to see prominent names such as Kings of Leone, Grimes, Mike Shinoda, 3LAU, and Shawn Mendes releasing their songs, albums and artworks via NFTs. Even Elon Musk was tempted to cash in on the NFT craze by producing an electronic track about NFTs and selling it as an NFT.
Image: Elon Musk
Consequently, many notable pop culture outlets are currently discussing NFTs. It seems if an artist simply issue their music as NFTs, it is enough to catapult them into the limelight.
How NFTs in the Music Industry Work
Due to the nature of NFTs, musicians can now directly sell copyrights to fans by issuing NFTs and use that money to fund their projects. This incentivizes fans to become investors and support their favorite artists’ work. Not only will the token-holders be entitled to a percentage of the revenue that an album release or live show generates, but the appreciating value of the NFT itself will help recoup their investment.
With COVID still dominating the world, many fan-favorite artists have slowed down their pace of production. This has undoubtedly troubled many fans who look forward to live shows or new albums each year. Streaming giants such as Apple Music and Spotify have not raised the rate at which they pay artists, so music-making is far from profitable.
Music Crowdfunding on the MOZIK Platform
Enter crowdfunding and platforms such as MOZIK to the rescue of musicians. The company has created a marketplace through which artists and fans can connect using Ethereum smart contracts. With MOZIK’s decentralized platform and blockchain technology, artists now can crowdfund their projects and fans can become investors and active participants in the music-making process. The best part is there is no third party involved. MOZIK’s proprietary Multi-Lock mechanism and the nature of blockchain ensure that all subsequent transactions between the artist and the listeners are secure and profits are maximized for all parties.
All you have to do as a listener is subscribe to your favorite artists, and MOZIK takes care of the rest. The more people listen, the more the value of the contract/NFT issued by the artist appreciates. In turn, as a listener, you can also earn royalty because you are a party to the contract as well.
As most of the revenue raised from the initial NFT release goes to the artist, they can continue to fund their projects and produce high quality content for their fans. This model can potentially be a sea change in the music industry, especially for independent artists.
When live performances are permitted again, artists can also crowdfund small concerts or gigs. This is especially attractive to independent and up-and coming musicians. They can set a limited number of tickets as NFTs and be sold with a specific price or in an auction. Within the NFT, the artists can also bundle exclusive content as an incentive for their fans.
There are also a number of advantages in issuing tickets on the blockchain. Bookings can be managed using smart contracts that would only execute automatically when contractual obligations are met. For example, the artist can set a minimum number of tickets that must be sold before the performance will go forward or the funds in escrow on the blockchain are only released to the artist when the concert actually took place. All this can be automated without using the bank or any kind of financial intermediary.
As for the NFT itself, it will become a memento for being at an exclusive concert or bragging right for discovering a new artist. Furthermore, the artists can decide in the future to provide their loyal fans who hold these NFTs additional perks or VIP access.
The decentralized nature of MOZIK’s crowdfunding model encourages creative products from artists and musicians and provides them with additional revenue streams.
Buying NFTs is like investing in the stock market. MOZIK allows you to be a shareholder in an artist’s career by buying their art as an appreciable asset. This asset shall appreciate in value as more and more people start taking an interest in the artist’s work. This incentivizes musicians to put their best foot forward when it comes to their art. At the same time, fans will be able to enjoy music from their favorite artists and earn money simultaneously. MOZIK’s platform is truly a win-win for everyone who loves music.