If you’re someone who thinks music NFTs are a passing phase, then you’re not alone. But, you haven’t missed the boat. We’ve got a bunch of reasons why now is as good a time as any to invest in music NFTs.
The last couple of years has been a bit of a rollercoaster as far as NFTs are concerned. But there’s still time to buy NFTs, plus many reasons why owning music NFTs, in particular, is still a very good idea.
Many people feel that the golden age of NFTs has been and gone. The celebrity-endorsed, over-priced JPEGs that caused a ruckus at the end of last year aren’t looking as appealing as they once did. However, it would be a mistake to assume that this is the end of NFTs altogether.
Why NFTs Aren’t Dead Just Yet
If you’ve read the above, and you’re thinking “pshhht, sure thing, whatever…” then here are a few reasons why NFTs certainly are not dead.
NFTs are still a relatively new technology with untapped potential. While there has been a lot of hype and excitement around NFTs in recent months, we are only just starting to explore the possibilities of this technology.
As more people learn about NFTs and experiment with their use cases, we are likely to see even more innovative and creative applications of this technology in the future. Lately, we’ve seen NFT tickets taking off, as well as NFT loyalty programmes, and even NFT real estate.
Volatility is Normal
The recent drop in NFT sales and prices is not necessarily an indication that the market is collapsing. As with any new technology, there is bound to be some volatility and experimentation in the early stages. Some early adopters may have overpaid for NFTs or invested in projects that ultimately didn’t take off, but this doesn’t mean that NFTs as a whole are doomed to fail.
NFTs offer unique benefits to artists and fans that traditional physical or digital media cannot. The ability to verify ownership, scarcity, and authenticity of digital assets through blockchain technology can provide a new level of value and exclusivity to fans, while also empowering artists to better monetise their work and engage with their fanbase.
The technology behind NFTs is constantly improving and evolving. As blockchain technology advances and becomes more energy-efficient, more scalable, and more user-friendly, we can expect NFTs to become even more accessible and widely adopted.
Music NFT Use Cases So Far
There have already been a number of interesting uses of NFTs in the music industry. The most obvious, perhaps, have been artists releasing music in NFT form.
Amongst the first notable instances of this was when Kings of Leon released their new album as an NFT in 2021. In fact, they were the first band to do this in history.
One more example of music NFT that has been gaining traction recently is gig tickets. NFT tickets allow fans to access exclusive perks alongside their ticket, thanks to the authentication of ownership provided by owning an NFT. In addition to this, fans and NFT ticket holders hold an immutable piece of history, showing that they were there for a memorable performance.
As NFTs are still pretty new, and have lots of untapped potentials, there are many more possible use cases that could be explored yet. They have already proven to be valuable across a range of industries. As such, it seems a shame to abandon the technology altogether.
The Value of NFTs for Artists & Fans
Another major set of reasons why it’s still a great time to buy NFTs is the value they provide to both artists and fans. Music NFTs come in all sorts of shapes and sizes, and the purposes they can serve are manifold.
If you’re not quite able to think of the ways NFTs provide value, allow us to break it down.
- Monetisation opportunities – Music NFTs allow artists to monetise their work directly, without the need for intermediaries like record labels or streaming platforms. This can provide artists with a greater share of the revenue generated from their music.
- Greater control – Because there are fewer intermediaries, artists have greater control over their music and how it’s distributed. They can choose to sell a limited number of NFTs, set the price, and retain ownership of the original master recording. They are fully in the driver’s seat.
- Fan engagement – By giving fans a chance for fans to buy NFTs from them, artists can engage with their audience in a new way. Fans can own a piece of their favourite artist’s music and feel a deeper connection to the artist and their work.
- Authenticity – NFTs provide fans with a way to own a unique, authentic piece of their favourite artist’s music. Because each NFT is verified on the blockchain, its authenticity is totally ensured.
- Investment potential – Value is also provided by NFTs because they can provide fans with an investment opportunity. If an artist’s music becomes more popular over time, the value of the NFT may increase as well.
- Exclusive access – By owning an NFT, fans may also gain exclusive access to special events or merchandise. Some artists may offer perks like meet-and-greets, backstage passes, or exclusive merch to NFT holders.
Buy NFTs, Solve Problems
The music industry has long been plagued by issues related to royalty payments, ownership rights, and distribution. These problems can make it difficult for artists to make a living from their work, and for fans to access and own music in a fair and transparent way. Fortunately, NFTs have the potential to offer solutions to these problems.
One of the most significant issues in the music industry is the problem of royalty payments. Traditionally, artists receive only a small percentage of the revenue generated from their music, with the majority going to the likes of record labels and streaming platforms. NFTs provide the option of royalty sharing, and for artists to directly monetise their music. As a result, artists can receive a greater share of the revenue generated from their music, enabling them to fund future projects.
Ownership rights are another issue in the music industry, with disputes over who owns the rights to songs and recordings often leading to legal battles. NFTs could provide a way to verify ownership and authenticity of music, as each NFT is verified on the blockchain, providing a transparent and immutable record of ownership.
This could potentially reduce the number of legal disputes related to ownership rights, as well as provide a way for artists to retain ownership of their original master recordings.
Finally, distribution is another area where NFTs could offer solutions. With traditional distribution models, access to music is often limited by geographical location or the availability of physical copies. NFTs, however, can be accessed from anywhere in the world, providing a new way for artists to reach global audiences. Additionally, NFTs could provide a way for artists to distribute their work directly to fans, without the need for middlemen.
One example of how NFTs are already being used to address these issues is the 2021 sale of the Wu-Tang Clan’s album “Once Upon a Time in Shaolin” as an NFT. The album, which had previously only been heard by a select few, was sold for $4 million as an NFT, with the buyer receiving a physical copy of the album as well. This sale demonstrated the potential of NFTs to provide a new model for ownership and distribution in the music industry.
If you have found yourself wishing you’d bought NFTs and struck whilst the iron was hot, you’re not too late! There are plenty of exciting NFT projects popping up, especially within the music industry. In addition to this are a variety of reasons why it’s still a great time to buy NFTs.
The untapped potential and ever-developing technology around NFTs means there are plenty of cool opportunities to invest in. Both artists and music fans can benefit from music NFTs, from greater revenue opportunities to better connections between fans and musicians.
If you buy NFTs, you can help make a flawed industry fairer, whilst intentionally earning money and building an investment portfolio. One of the best ways you can do this is by buying royalty share NFTs. Give artists instant revenue to continue their music projects, and earn passive income from the streaming royalties of your favourite songs.
Fancy buying royalty shares of your favourite independent artist’s music? Sign up to Fractis to be first in line to build an exciting NFT portfolio!