First of all, rapper Booba recently managed to sell 25,000 copies of the “TN” clip in the form of Non-Fungible Token (NFT). Yes, we can say it, the entire cultural sector has been turned upside down with the appearance of NFTs and it is not going to stop. In fact, NFTs are being used more and more around the world, as big names in the industry such as Eminem or The Weeknd are turning to this novelty. If you are new to NFTs, you are probably wondering what they are for. Will this new revolution have an impact on the art world? How to exploit it in music?
What is an NFT?
What does the term NFT mean? It is an abbreviation for “Non-Funglible Token”. In a nutshell, it can be translated as “non-fungible token”. In practice, an NFT makes it possible to obtain a Certificate of Authenticity which can take the form of a digital file. That's why each NFT is unique, it's like buying a limited edition. Therefore, each file is unique and depending on the notoriety of the product, it acquires greater or lesser value.
Regarding the technology it uses, you must also have heard of it at least once in your life. It is based on blockchain , the same technology used in cryptocurrencies. Born in the 90s, this technology is intended to ensure the security of transactions. So what good is it in music?
How are NFTs used in music?
Artists waste no time and they are absolutely right. A large number of artists and organizations have already used NFT to promote their music. Wiseband has found some examples for you:
In November 2021, single-issue house and techno masterpieces will be auctioned at Pianity , all through an auction system.
In February 2021, it was Linkin Park group member “Mike Shinoda” who put his Zora project up for sale as an available auction on a platform as part of the NFT purchase.
Famous Australian singer Sia will launch an NFT collection in December 2021 at Opensea in association with Sam Bankman-Fried's FTX. Sia chose FTX because of her philosophy, but remains platform independent.
The impact of NFTs on the music industry
In summary, we have seen that the development of NFTs can be used in different ways by those working in the music industry. Now, I know you have a question on your mind: how to profit from NFTs in the long run? But also, what method could you use to sell your music thanks to NFTs?
With NFTs, a completely new system is created. In fact, we are totally reinventing the way we sell our creations in the digital world. Especially on standard streaming platforms like Deezer or physical media like CDs.
This is now possible with NFT, thanks to completely innovative technology. In addition, virtual reality is the link with NFTs and now allows you to live an immersive experience. For example, Nextech plans to launch an augmented reality NFT creation program. As a result, NFTs provide an infinite number of options.
The NFT system works like a traditional market. That is, it is governed by supply and demand, just like any other market. A person buys an NFT because he believes in a musical project. Perhaps because he is a fan of a song or simply because he sees this project as a real investment. What makes sense is that the more notoriety you gain, the more valuable your NFTs will be.
From now on, NFT development wants to be the number 1 platform for all music creators. This is because it allows you to receive royalties for each transaction.
For example, imagine if you release your new single through a fully exclusive NFT release. You decide to sell the remaining 100 copies for 1 euro each. Then 10 years later, you become an international star and your song, which had sold 100 copies, has become your most famous song.
The famous piece that you sold for 1 euro is now over 3,000 euros on Ebay. Therefore, you will earn 10% commission on the Ebay sale . It's not beautiful?
Ultimately, this is the strength of NFT development. With products like vinyl or CDs, you cannot earn a commission over time. Whereas with NFT, you can add a program that allows you to earn money on each sale. You still have to find the right NFT market.
There is a specific platform for each area of culture. More commonly known as the NFT “markets”. Here, we are going to focus on music markets. So what is an NFT market?
An NFT music marketplace allows artists to turn their singles into limited editions and sell them directly to their fans. This platform is primarily aimed at music fans and you do not need to be familiar with cryptocurrencies to use the platform.
The NFTs available in the market can be purchased by credit card. You don't even have to create a crypto wallet to use NFT markets.
Every day, new NFT platforms specialized in music are launched around the world, such as Pianity. Its peculiarity is that the NFTs that they offer for sale do not give any rights to the purchased song. The reason is simple: favor artists as much as possible and ensure that they are paid better without giving anything more in return.
Therefore, the goal of the marketplaces is to allow everyone to listen to ad-free music for free. Regardless, it also helps provide a source of income for artists through NFT sales, in addition to the digital distribution Wiseband offers .