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Highlights
- Before NFTs, investing in music publishing rights was difficult.
- NFTs would give the artist the freedom from going through the traditional norms and can simply create digital labels and sell them as NFTs.
- According to a Saxo Bank report, music artis today will stand to benefit from NFT-based streaming platforms rather than the traditional ones.
Non-fungible tokens (NFTs) are digital assets where the users can use it collect digital collectibles that are unique. Today, we are in a world where NFTs have made a significant impact on the crypto world and they are opening up new avenues for the artists not only to sell their art, but also earn in the process. Besides, what’s its doing is that it is moving into new avenues and breaking barriers and are challenging established businesses to rethink their strategies going ahead.
NFT music platforms have been disrupting the music industry. Before NFTs, investing in music publishing rights was difficult. NFTs would give the artist the freedom from going through the traditional norms and can simply create digital labels and sell them as NFTs. This gives the artists the direct access to their fans and earn royalty too in the process.
Experts feel this platform can leave a big impact on players such as Spotify or Apple Music. Let’s see how.
NFTs vs Biggies
The likes of Spotify and Apple Music traditionally have been the leaders in the music industry. In 2020, Spotify had generated €7.95 billion in 2020, but in 2021, its figures substantially increased with the total amount of monthly users surging 19% year-on-year to 381 million in Q3 2021, with the revenues hitting €2.50 billion in Q3 2021.
In contrast, NFTs, which is still new in the arena, has managed to make a deep impact on the music lovers. According to a Saxo Bank report, music artists today will stand to benefit from NFT-based streaming platforms rather than the traditional ones.
Spotify or YT or Apple Music do have a particle genre or style of audience. But with NFTs, the audience is not restricted. It offers a wide variety of choices in terms of music or videos at different prices and with a varied engaging experience. Besides, the artists have freedom to sell their collections to different audiences thereby increasing their chance to earn in the process.
Besides, NFTs and other blockchain technologies doesn’t involve middlemen, thereby cutting off unnecessary layers. These middlemen often act as barriers to sell their labels or records but with NFTs, the owner is the manager thus can control the selling price and margin.
How NFT music platforms can give Spotify & YT a run for money
Conclusion
At present, it is safe to say with the growth of NFTs, more and more artists could turn to the blockchain-based systems to sell their labels. The NFTs are significantly gaining prominence and it won’t be a surprise to see the market for NFT music go up significantly in 2022 and beyond.
