What Selling NFT’s Mean For The Music Industry
NFTs have been steadily growing within the music industry. Artists can bring their music projects onto the blockchain giving them more exposure and also opening up their previous works to a new audience thanks to their new digital state. Selling your old albums as NFTs is a great way to share your work with those who never had access to it before, or simply create new albums that are exclusive to NFT purchases or sales.
Many artists are taking advantage of the growing industry by using this strategy and releasing their old albums as NFTs. Some artists, like Brian Byrne, the creator of “Fallout 3” soundtrack, have even made thousands of dollars by releasing their past albums in the blockchain music industry, and Tory Lanez is another artist that has done this and gained a lot of recognition for his success within the blockchain industry. His NFT’S generated more than $400,000 in initial gross sales and he’s also sold over 1 million copies.
As NFT’s and other forms of cryptocurrencies become the talk of the new year with people finding ways to profit, Here is some more information on what NFT’s are and why musicians are selling NFT’s for you to get inspired in the new year with creating a new income for your latest projects.
What Are NFTs
NFTs are a unique asset in the crypto market that is stored on a digital ledger. As the digital world opens up; New options for owning digital assets like artworks and audio, the need for identity verification has also increased. Since every NFT is unique it can be used to authenticate ownership of digital assets like artworks, recordings, and virtual real estate or “pets”.
This is where the investment in NFT comes in. To help users own their digital assets, blockchain companies have introduced crypto collectibles. These crypto-collectibles are cryptographically unique and can be purchased and sold using blockchain technology.
Benefits of Using NFTs
There are many benefits to using NFTs. Ownership can be transferred to someone else in exchange for real money; making it a potential investment for a long-term profit.
When it comes to the music industry, perhaps the best benefit of NFTs is those creators can make money directly from their work. Revenue gained can be divided between both the creator and artist, which makes for a win-win situation in that both parties will benefit.
NFTs can change the game for independent artists because they have provided increased accessibility. Their appearance on the market has done a lot to bridge the gap between consumers and artists, and new technology is helping independent artists earn a living in a new way that is not only more convenient but also provides a fair distribution of assets.
Exchange In Music Artists And Fans
A new generation of music artists has started to embrace the power of creating digital assets for music using blockchain technology as graphic artists and designers have been creating digital assets in the form of NFTs for some years. However, these assets have started to be used for new music releases. This is a great way for artists to engage with their fans as the interaction between the two is happening with the use of a variety of creative visuals.
Musicians and their fans have always interacted in a variety of ways, but with NFT’s, now fans can become early investors in a music project and reap the benefits later once the music becomes more popular. NFT purchasers can also receive NFT only artist bundles that could include concert tickets, meet & greets, unique artworks, etc.
While blockchain technology is still in its infancy, more and more people are starting to realize the potential it can have on the global financial system. While others might not be able to completely comprehend the technology behind the blockchain or its applications, investing in NFTs can be a new and exciting way to support your favorite musician.
Long Term Value
Much like trademarking a name or owning a domain, investing in unique and exclusive non-fungible tokens can help you gain long-term value. Owning NFT can potentially make your investment iconic in ways never before. As the rightful owner of both the artwork and its code, you not only have ownership over the tokenized asset itself but also the copyright if it falls within the category of a digital art piece.
Additional Income Outlet
With so many people working on different projects, it’s challenging to make a profit as a musician. Many performers go straight to streaming services like Spotify or Apple Music to take advantage of their income. However, this isn’t necessarily the best way because these platforms take quite a large cut of what is earned. With NFTs, there can be opportunities for musicians to earn more with one song or collectible than they could throughout their career by using streaming platforms – and that’s not even including how much they would be able to make if they were able to sell their digital objects time and time again down the line!
What’s more, an artist will have access to royalties from past sales every time any of their NFTs are resold; these artist royalty payments will be anywhere from 2.5% to 10% for each instance over the future life of their asset on each sale.
According to trading platforms, investments for non-fungible tokens (NFTs) were increasing tremendously in the early years, from $100 million in 2020 to more than $21 billion in 2021. This statistic will only increase over time with the new way of the world transforming over to the digital world. Nowadays a lot of people are familiar with blockchain technology and are proactively working with it to try out new and innovative forms of investing like NFTs. This is why they should be open to not only selling things like albums as NFTs as a way of securitizing their work, but businesses and other artists can look into it as well because this will only continue to increase competition over time.
If you are a current artist or business looking for more help and guidance on how to get started with NFT’s, check out the newest NFT service we offer which is helping our clients with NFT creation and promotion to assist them in launching their next successful blockchain project here.