The list of uses for blockchain technology and NFTs is growing all the time. Musicians are using NFTs to strengthen their following and further their careers. If you thought NFTs were just profile pictures and JPEGs, think again.
The ways in which people are using NFTs is changing dramatically right now. The value of primarily visual based NFTs is crashing, and a new way of thinking is being applied to these unique tokens. Music NFTs are helping to forge and sustain the careers of some innovative independent artists.
The music industry has had to adapt to technological advances of whiplash-inducing speeds. For many of us, the internet has been available our whole lives. In reality, web 2.0 (the read and write internet) is still less than 20 years old. With the dawn of social media and digital music streaming, the life of the career musician has evolved.
The music industry has evolved with these developments in technology. However, with music streaming only being around a decade old, licensing and copyright law still isn’t that solid. Equally, the business and legal side of music hasn’t become as DIY friendly as the creation side has.
Independent musicians are often faced with a choice: sign a record contract and get some revenue but give up creative control, or remain free and in control but struggle to fund projects.
At Fractis, we don’t believe it should, or needs to be, this way. With NFTs holding an array of utility, it’s exciting to watch our favourite artists utilising NFTs to fund creative projects, whilst enjoying a fair and fulfilling career. Let’s take a look at the ways non-fungible tokens can transform a musician’s career!
Getting Music Straight to Fans
When an artist releases music, they’re nearly always at the mercy of other people. This could be record label executives, retail bosses, or DSPs (digital service providers) like Spotify or Apple Music. Their releases will be required to hit certain criteria, as well as adhere to rules and regulations. Further to this, music could be taken down by the DSP without warning.
By releasing music as an NFT, fans can access music directly – usually by receiving a downloadable version, which is attached to the token. This way, artists know that fans and investors can enjoy their music however they like, without fear of them losing access. Artists can also control how much they sell their music for, and even if they give it away for free.
Creating New Revenue Streams
Making music, full-time or pat-time, can be expensive. There’s equipment to buy, studio time to pay for, and sometimes other musicians to hire. A lot of independent artists struggle to drum up enough ready money to fund their project and realise their creative vision.
By using NFTs, artists can create new revenue streams to help fund their work. There are actually different kinds of music NFTs. This term is loose, and just refers to any NFT related to music in some way. This could be album artwork, music videos, music itself, or music streaming royalties.
Artists can take advantage of each of these options to diversify their revenue streams. This optimising of income opportunities can be the difference between creating a full album, or dreaming of creating one.
Fractis recognises the power of music streaming royalties. Since music streaming makes up 64% of recorded music revenue globally, there’s a healthy stream of revenue for artists to tap into. By selling shares of their music royalties as NFTs, artists can get an instant injection of revenue. If investors choose to sell on these NFTs at a later date, the original artist will also get a percentage of the resale cost. Fans and investors benefit from monthly passive income generated by listens on streaming platforms.
Keeping the Funding Ball Rolling
We’ve already mentioned how music NFTs can be used to secure funding for future musical projects. Artists can create a buzz around new releases, or even old back catalogue gems, by dropping fresh NFTs.
It can be never-before heard exclusive singles, or something from the vaults. If you’ve ever felt excited about a remastered album, you’ll know just what we mean!
This is super helpful, as buzz doesn’t have to rely on the creation of brand-new music. Rather than quickly churning out music for the sake of it, artists can take their time but still stay relevant and connected with the audience.
When famous musicians talk about their journey, they’ll often express gratitude to their fans and listeners. After all, without them, they wouldn’t be where they are. This is why it’s so important to foster a community and engage with fans continuously.
Now, artists are using NFTs to do just that. As mentioned previously, dropping exciting and exclusive content in the form of NFTs keeps the funding ball rolling, but it also keeps fans engaged. When fans can connect with one another over their NFTs, they can feel part of a club. This sense of togetherness and family can generate an ever deeper feeling of loyalty towards the artist. By creating NFTs to share with their audiencee, artists are able to connect with them on a stronger level than ever before.
If the idea of independent musicians taking back control of their art and furthering their careers resonates with you, check out Fractis.
We’re dedicated to creating better music investment opportunities. Through web3 practices and green blockchain technology, we’re putting power back into the hands of the artist and fans – the people who matter most in the music industry.
Sign up to Fractis now, and be ready to start investing in a fairer music industry!