Musicians have long relied on a loyal fanbase for their careers to really take flight. Blockchain technology enables fans to show their appreciation in a new and powerful way. If you enjoy being part of a tight-knit group of devoted supporters, joining an NFT community is for you.
Community means a group of people with a shared mindset or interest in common. The best communities are borne out of passion and love. As a music fan, becoming part of an NFT community is the perfect way to display your dedication, whilst enjoying that sense of belonging.
Fandom At Its Finest
Music fans have numerous ways of showing their love. They invest in music by buying records, attending concerts, posting on forums, and streaming the music online. In fact, music fans are some of the most devoted and zealous in the world. Hearing about someone following a band as they tour, or cycling from Germany to the Lake District to attend a festival is not unheard of.
Social media has enabled fans to connect with one another from all over the world. The rise of digital music streaming has allowed bedroom producers in little-known towns in Eastern Europe to be enjoyed by listeners in Western Australia.
The internet completely changed the landscape of what it means to be a music fan. New ways to demonstrate your love for an artist, besides plastering your walls in posters, became available. You can follow bands’ official and verified accounts of Instagram or Twitter. You can sign up to a regular newsletter, so you’re always in the loop. Many popular music magazines moved from print to purely online-based, as their audiences migrated from paper to pixels.
Music lovers have embraced technological advances, and utilised them to declare their musical alleigance. Adapting to web 2.0 was a natural progression for fandom of any kind, for that matter. Now, it’s time to look at how web3 and music community can come together.
Music Fans in Web3
Technology is always being developed and enhanced. It’s no different when it comes to the internet. If you’re wondering what web3 is, it’s the latest iteration of the internet. Also referred to as the “read, write, own” internet, it’s a step up from the version we’re all so used. That version, by the way, is referred to as web 2.0, or the “read and write” internet.
What does the “own” aspect entail? Web3 is built upon ideals of decentralisation, transparency, and shared ownership. This means users of an application or platform have a stake in it, meaning they have a say in developmental changes or changes of direction. Rather than signing up for someone and just going along for the ride, you get to help drive the thing.
This is all based on blockchain technology. With crypto tokens at the heart of everything, web3 has seen the power of the NFT community really take form. The nature of blockchain is that it is secure, fast, and immutable. These attributes are creating a new way to build businesses, platforms, and communities. One that is fairer, and control is shared more evenly.
How does this relate to music fans, you ask? That’s where music NFTs come in.
What Are Music NFTs?
An NFT, or non-fungible token, is a token that sits on the blockchain. In essence, it’s a certificate of authentication, proving someone’s ownership of something. At its core, it is a string of numbers and letters, but it is usually attached to someother asset. This could be anything, from images to houses to music stuff.
Maybe you’ve heard some bad press around NFTs lately. The value of profile picture and JPEG NFTs has been tanking this year. But, we’re seeing a lot more intersting use cases of NFTs now, with some cool real world applications.
Music NFTs can be an NFT attached to anything music related. This could be the digital download of an album, a music video, gig tickets, anything. More and more artists are exploring this space, and Muse became the first band to reach number 1 with an NFT album. Music NFTs have plenty of uses beyond bragging rights and being collectibles. Our favourite example of this is music royalties!
Music Royalties NFTs
Music streaming royalties, to be exact.
At Fractis, we offer the chance to invest in music created by your favourite independent artists by purchasing a percentage of their streaming royalties in NFT form. Music streaming has changed the industry, now accounting for 64% of all recorded music revenue globally. Streaming royalties are a productive asset. This means that they generate value in themselves. Here’s how…
When an artist’s music is streamed on platforms like Spotify or Tidal, royalties are generated. These are paid out to the artist on a monthly basis. Artists can choose to turn the royalties of their music into NFTs. For example, an artist wants to sell 50% of the royalties for their latest single. They can choose how they split this up. 1 NFT representing the 50% could be sold, or 50 NFTs representing 1% could be sold. Pricing is also up to the artist, and they get a cut of any secondary sale revenue generated. The artist enjoys a hit of instant revenue from selling NFTs, meaning they can fund future projects.
This is all sounding great for the artist, but what about you as the fan? Buying music streaming royalties means you’re joining an NFT community, and investing in a better music industry. To sweeten the deal even further, you also enjoy passive income. As the artist earns streams, you earn monthly royalties. The incentive for supporting your favourite artists has never been so great!
You can join an NFT community, and grow a collection of exciting new music. Simply sign up to Fractis, and be ready to become the next age of music fan.
Flex your A&R muscles, bet on your top bands, and champion the artists you think are set to be the next big thing. When the artist succeeds, you succeed. Enjoy the unbeatable feeling of being a team and winning.