Some NFTs gain value, and others (most) just sit there. Fans will have always understood the value of music, but we want to explain how it’s growing even more. Learn about why music streaming is making music a productive asset, as well as the perfect NFT.

The value of music is much more than just financial. How it makes you feel, the memories it conjures, and the community it creates can make you feel just as rich as any millionaire. But, it’s always a bonus when something you’re passionate about can earn you some money, right?

Before, music made money through sales. These were sales of vinyl records, CDs, and even downloads. But, these days, it’s all about streaming. In fact, streaming has completely changed the way we access and consume music.

Platforms like Spotify burst onto the scene just over a decade ago and offered music lovers something irresistible: pretty much any music you like, for a relatively small monthly fee. Now, streaming makes up for 65% of recorded music revenue worldwide.

This doesn’t show any signs of slowing down, by the way.

This huge growth has meant that music royalties have also risen in value. You may have noticed hugely successful artists selling off their back catalogues in the last year or so. The likes of Stevie Nicks and Bob Dylan have exchanged their music rights for unprecedented sums of cash. Why? Because large investment companies, like Hipgnosis and Blackstone, have spotted the growing value of music royalties, and struck whilst the iron is hot.

Fractis is here to make sure that everyone, whether an artist or a fan, gets a piece of the action. New, undiscovered artists should get to benefit from royalty sharing just the same as a massive music icon. Similarly, we believe that dedicated individuals and fans should be able to get involved, and not just enormous private equity companies.

Table of Contents

Just How Big Is Music Streaming?
Music’s Getting More Valuable
Productive Music NFTs
Music Royalties on Fractis
Own NFTs & Support Artists

Just How Big Is Music Streaming?

Spotify alone has 365 million monthly active users. One of the most popular music streaming services out there, it has enjoyed quarter-on-quarter growth since 2015. The company launched in 2011, and who can remember what things were like before that?

Music piracy was rife, and illegal downloads were damaging artists’ chances of making a living. Lots of people loved music, but couldn’t afford regular purchases of physical or digital formats.

When Spotify came along in 2011, the game was changed. The popularity of the platform led to competitors popping up all over the place – like Apple Music, Tidal, and Amazon Music.

A report from the RIAA detailing the year-end music industry statistics of 2021 shows that streaming revenue generated $12.4 billion. It was the first year that TikTok Music contributed to the figures, and helped streaming account for a huge 83% of recorded music revenue.

Music’s Getting More Valuable

Reports, such as the RIAA’s, strongly suggest continued growth going forward when it comes to music streaming. As a result, the value of music royalties – as an asset – is also going up.

The stats we mentioned above account for the United States only. Territories outside the US and Europe are just starting to see music streaming grow in popularity. This means that we can expect to see even more staggering statistics over the next few years, as other areas start streaming more.

Goldman Sachs offers a prediction of music streaming stats for 2030 in their engaging report.

Image Credit: Goldman Sachs

Why are we so interested in the future of music streaming, anyway?

Fractis is all about owning music, even if you’re not the artist who created it. Sharing music royalties benefits both artists and fan, and helps put music back into the hands of those who matter. You can learn more about how Fractis works here.

Productive Music NFTs

If you’re not familiar with the concept of productive and non-productive assets, we’ll give you a quick run-down.

Non-productive Assets

A non-productive asset is something that does not produce anything in itself. A great example of this is gold. Whilst this precious metal is generally viewed as the pinnacle of value, it doesn’t actually produce any value itself.

Someone with a stash of gold simply has to hope that someone will buy it from them for the price they’re asking. This price will be based on a number of things, and the value will be agreed upon elsewhere. But, gold does not earn or produce anything – it just sits there and looks pretty.

Productive Assets

You’ve probably already figured it out. Productive assets are things that actually earn or produce something of value themselves. They’re out there doing the work and giving back to the owner again and again.

The perfect example of this is music streaming royalties. Owning a fraction of music royalties means that not only will you hold something that can grow in overall value when you decide to sell, but it will produce revenue for you whilst you hold it.

Sound a little too good to be true? Well, it’s not – honest!

Music Royalties on Fractis

By making the buying and selling of music royalties as an NFT possible, the door to better music investment is opened to everyone.

Basing a music streaming royalties marketplace on the blockchain means there’s no need for intermediaries. Everything is secure, fast, and simple – even if you have no idea what a blockchain really is!

Fractis has made it possible for fans to buy and sell royalties NFTs on a secondary sale basis on the platform too. This means no need for third-party marketplaces like OpenSea.

We’re all about keeping it simple.

How Much Does Streaming Make?

Being partnered with RouteNote, we know all too well that, despite the value of music, streaming doesn’t always pay out as much as artists would like or deserve. Problems around the fairness of how streaming payouts work on major platforms have been well documented in the last year or so.

Despite all this, streaming does still pay.

RouteNote, in particular, provides the tools for independent artists to reach a global audience and grow their fanbase. Whilst payment per stream varies dependent on the territory (and some other factors), you can take a look below at what the rough rates are.

Image Credit: Headphonesty

You can help support your favourite artist’s growth, whilst earning revenue right along with them.

Own NFTs & Support Artists

Artists on Fractis can decide what fraction of their royalties they sell as an NFT, and how much they sell for. By purchasing these NFTs, fans can directly support artists by providing them with instant revenue. This could help them fund their next musical project, meaning you get to enjoy more of their work sooner!

As the tracks that you purchased royalties for get streamed, both you and the artists will receive a share of the monthly revenue. How will this work?

  • Artists and fans must have an active wallet connected to Fractis (we recommend using Phantom)
  • Payouts will be made on the 1st of every month
  • There is a $50 threshold for payouts
  • Investors will need to request payouts
  • Payouts will be made via either bank transfer or crypto (USDC or SOL)

If you fancy yourself as a bit of an A&R person, you can bet on music that you think is going to blow up. If you get it right, you could end up with a smart investment that gains value over time.

Be part of the growth of fantastic artists, whilst putting music ownership into the hands of the artists and fans!