It’s good to keep busy, but there is a limit. That’s why finding a passive income is perfect for anyone looking to invest in something, but doesn’t have a lot of free time. Music streaming royalties NFTs present the perfect passive income opportunity.
Who doesn’t love receiving money for nothing? It might sound too good to be true, but oh boy is it true. Passive income investing is very real, and you can do it in a way which supports amazing creators, and helps heal a broken industry.
Most of us have heard one popular Christmas song for the 200th time in December and thought, “this artist must make SO much money from this!” It’s true that a few musicians seriously cash in during the holidays more than any other time of year. This is all down to royalties.
You might have wondered how you can get in on that sweet royalties income. The slight snag is that you’ve never written a song in your life, and you’re tone-deaf. Whilst anyone can be creative and give things a try, there are actually other ways you can enjoy revenue from music royalties.
Firstly, let’s take a look at why music royalties make such an attractive investment.
Music Royalties as an Asset
In the last 10-15 years, the music industry has changed somewhat. This is thanks to the advent of digital music streaming. Platforms like Spotify and Apple Music have made catalogues of music available to listeners either for free, or for a small monthly fee.
The streaming industry isn’t showing any sign of slowing down. By the end of 2021, reports showed that streaming had generated over $12.4 billion. It accounts for 65% of all recorded music revenue worldwide. Put simply, music streaming is not to be sniffed at.
This continuing growth (it’s estimated that music streaming will generate over $100 billion by 2030) makes streaming royalties an incredibly attractive asset. The major attraction comes from the fact they are a productive asset. In other words, an asset that does something useful for you – like earning passive income. If you invest in music that is well-received and popular, you’re guaranteed a tasty passive income.
Music Royalties NFTs
Passive income investing becomes a lot more interesting when you throw NFTs into the mix. The attractive thing about a passive income is that it requires very little maintenance, if any at all. It makes sense then that setting up the passive income should be easy too.
This is the case with music royalties NFTs – especially with Fractis. Now, let’s see how it all works.
How Music Royalties NFTs Work
When an artist has their music available on platforms like Spotify or Tidal, they are able to receive revenue generated by the number of plays their music gets. Different platforms have different rates and ways of calculating this. But, generally, the more plays, the more revenue.
This revenue is referred to as “royatlies”. The artist will be paid these royalties each month. Besides potential other activities like live shows, album sales, or session work, royalties are one of the main sources of income for musiciains.
The difficulty is, these royalties trickle in at a gradual pace, meaning it can be difficult for artists to gather the funds to invest in a new musical project. This is especially true for newer, lesser known artists.
If an artists decides to sell a fraction of their music streaming royalties as an NFT, they can receive an instant hit of revenue, rather than waiting month to month. It’s super simple. The artist can decide what percentage of the royalties for a song, EP, or album they share, and for how much. They can sell just one NFT, or a whole collection.
Creating an NFT on Fractis is easy, and can be done with just a few clicks. Once created and sold, the buyer will receive a percentage of streaming royalties each month, based on how many listens the music connected to their NFT has earned.
Better Music Investment
As a fan and investor, it’s up to you to take a bet on your favourite new artists. If you can imagine a song blowing up in the future, it’s smart to buy a share of its streaming royalties early on. That way, when it starts pulling in the monthly listens, your passive income will get a wonderful boost.
Passive income investing is always better when it’s part of a bigger picture. Investing in music streaming royalties as NFTs helps contribute to a fairer music industry. The NFT aspect enables independent artists to take back control of their careers and art. Blockchain technology ensures revenue goes directly to the artist – not watered down by industry middlemen. It’s also fast and global.
No matter where you are in the world, you can invest in your favourite artists and secure yourself a passive income that’s doing some good!
Sign up to Fractis today, and be ready to invest in a better music industry.