Although many people associate NFTs with digital pictures, there are many other applicable categories to consider. One fast growing ecosystem in the NFT industry is Music NFTs. Want to learn more? As an artist, here’s what you can do…
Everything You Need To Know About Releasing Music NFTs
Here’s the rundown…
Traditionally, when you buy a track on iTunes, you are buying the right to listen to that music. In contrast, Music NFTs let anyone listen to tracks, but also transfer ownership of that file through an NFT.
Understandably, Music NFTs may sound counterintuitive… Why buy the music you can already listen to? — The answer to that question lies in the same concept as buying JPEGs. Anyone can right-click and save. Markets, or people, find value in ownership of provably unique and original assets.
At the end of the day, Music NFTs allow fans to invest in the artists they truly enjoy and believe in while receiving benefits in return. Conversely, they allow artists to fund their music projects directly through the support of their fans.
Musicians can utilize NFTs in a number of ways, but the most important aspect is the fan connection. Via Music NFTs, NFT holders can receive special perks and entrance to an exclusive community of fans.
Perks can come in the form of exclusive merchandise, early or VIP access to concert tickets, and even the ability to use the NFT content for their own commercial use.
Another way musicians are utilizing Music NFTs is by offering a share of the revenue generated from the song, helping create a true fan-centric ecosystem.
For example, companies like Royal help artists mint “royalty-bearing” NFTs. Through a special process, they can facilitate the sharing of revenue from streaming royalties with fans who hold the NFT.
In October 2021, an artist named 3LAU minted the platform’s first NFT for his song Worst Case. NFT holders collectively receive 50% of the streaming royalty rights. Since then, artists ranging from Nas to The Chainsmokers have given away streaming revenue to their fan base.
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Music NFTs also allow for artists / collaborators to receive split payments in a more transparent and frictionless fashion. — Through NFTs, new split processes allow artists to cut their collaborators in on NFT revenues.
Artists can send proceeds from an NFT sale directly to multiple crypto “wallets”. In practice, this means artists releasing Music NFTs can now share their revenues in a fully automated way with their entire range of collaborators, including co-writers, session musicians, artwork creators, mix engineers, marketers, and more.
Music NFT platforms like Sound.xyz are also incorporating these new splits technologies for creators. Below is a striking example of a split among many collaborators — including performers, producers, and curators — on Soulection’s UNTITLED 001:
NFTs give creators the chance to explore new ways of rewarding their loyal fans, paying their collaborators, and sometimes even paying those dedicated fans. With the help of platforms like Royal and Sound.xyz, artists can strengthen their connection with listeners in new and unique ways.
The NFT space at large is ever changing, allowing for new and exciting opportunities for creators of all kinds. These are just a few examples of how NFTs can be incorporated into an artist’s career. What’s stopping you from trying these out for yourself?