Sep 09, 2022

Music NFTs in 2022: What you Need to Know

The popularity of NFTs (non- fungible tokens) has exploded significantly even in the music industry. Big music brands as well as artists are getting in on NFT action. The reason for this, is that Music NFT auctions and sales offer musicians an exciting opportunity to monetize their artworks.

Why Artists Need Music NFTs

The rise of streaming services like Spotify and Apple Music has allowed people to access unlimited music for a monthly fee. As a result, this has had a huge impact on the way musicians make money. According to reports, most of Spotify’s top 0.8% of artists earn less than $50k in streaming revenue.

The Covid-19 pandemic also impacted monetizing live performances. With live gigs being cancelled due to the pandemic, musicians lost their primary source of income. 

In contrast, the NFT and crypto space experienced a significant increase in awareness and utility, resulting in millions of dollars in revenue for various visual artists and illustrators. So music NFT is another new way for artists to monetise their art.

music NFT

So What are NFTs?

Non-fungible tokens (NFTs) are digital assets that are stored on a blockchain. NFTs are unique and cannot be replicated, making them ideal for storing artwork, videos and music. When musicians create an NFT of their art, they can sell it for  a certain price. If someone buys your NFT, they will own it forever and can use it however they want.

NFTs can represent anything on the blockchain, including digital assets such as digital art, music, metaverse land or physical assets like artwork, merchandise, physical property, etc. Artists can sell their NFTs via smart contracts and blockchain technology, so each NFT is distinct with its own code.

How Can the Music Industry benefit from NFTs?

1.Build a loyal and engaged audience. Artists have a deeper understanding of who their listeners are and what they really need and are ready to pay. By giving fans exclusive access to your music, you can create a stronger connection with them. 

2.Royalty on secondary sales. One of the most valuable advantages of NFTs in music is the ability to set up royalties. Royalties allow artists to build a passive income by receiving a share from secondary sales of their music NFTs. It means that whenever an NFT is sold, the artist will earn a part of the revenue. 

3.Linking merch to NFTs. Musicians can link their digital art to physical autographed CDs, song royalties for music NFT holders, backstage passes, special remixes, and private parties. In the future, we believe NFTs can also be implemented into live streaming services and events platforms to expand their engagement to at-home audiences and offer them live dynamic experiences.

4.Excluding third parties. The main advantages of selling your art as NFTs is excluding third parties and making the process completely transparent. Payments are made automatically and immediately. Also, with NFTs and blockchain technology, your ownership rights are simplified.

5.Making art more valuable and exclusive. NFTs have really revolutionised the music industry, making art more valuable and creating  new markets for artists in the digital space. Artists are able to create content and set the price they want and choose how it is distributed. 

How to create music NFTs?

Musicians can use services like Rarible, OpenSea or NFT showroom. These services allow you to create and sell NFTs without any programming knowledge. But you can also create NFTs manually.

Another way, is to use a platform like Ethereum or EOS. These platforms allow you to create smart contracts, which automate the sale of NFTs.

The current music industry pay-out model has difficulties and barriers. NFTs change this by allowing music artists to sell their NFTs on a marketplace where they can directly engage with their fans and earn all the sales generated by their music files. Creating your own NFTs for music purposes is a great way to grow your brand and monetize your work. 


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