The music industry is changing rapidly at the moment, with NFTs being the main driver of change.

Originally, the music industry operated under a royalty system. Streaming platforms did bring artists recurring royalties, albeit small, but the sale of physical media was most often a one-time profit, independent of the number of listens. And if a fan decides to sell a record, the owner of the royalty rights will no longer receive any money, making it difficult for most musicians to make a living solely from their creativity. The solution to this problem is what NFTs have become. Keep reading, and you’ll find out how they’ve changed the familiar field of music. 

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What are music NFTs

A music NFT is a certificate of ownership of a unique audio or musical work that can be bought or sold. NFTs provide irrefutable proof of ownership using blockchain technology and have a certificate of authenticity that can be verified at any time. Like cryptocurrency tokens, non-transferable tokens are stored in a distributed registry, so they are difficult to counterfeit. With NFTs, artists can claim full ownership of their music without having to give a portion of their income to intermediaries such as music labels or lawyers.

Different types of music NFTs

There are several varieties of NFTs in the music space. Let’s find out how they have impacted the industry we’re familiar with. 

Songs and albums in their entirety

Always wanted to get your first recording of your favorite song or album? Now it’s possible! More and more artists and musicians are using NFT to release exclusive recordings to get closer to their audiences. 

Recently, renowned R&B artist and award-winning artist Trey Songz unveiled an NFT-exclusive mistery box on Binance NFT that includes new unreleased songs and unique tracks created by the artist. Another NFT set from this collection features the latest songs, the opportunity to talk to Trey via video link and even participate in recording a track for his album.

Digital Artwork and Photography

Artwork of various kinds plays a large role in the artists’ work and has some impact on their income. Digital images include limited edition album covers, posters, and exclusive backstage photos from concerts.

Concert Tickets

The growing popularity of non-interchangeable tokens is creating more and more ways to use this technology in the real world, such as exclusive privileges, luxury items and even concert tickets. The advantage of an NFT ticket is that you are protected from fraudsters and will never lose it! 

Just like the NFT video clips from the NBA Top Shot, you can now permanently save a moment of a concert special to you by purchasing it as an NFT and even play it in your home in the future.

Web 3.0 and the value of musical NFTs

In the era of Web 3.0, where “people create content, people make money,” NFTs have become a real boon for independent artists without a music label contract, as non-interchangeable tokens give them full control and ownership of their works. In addition, this way artists are not dependent on streaming platforms and can release their music independently. NFTs present independent artists with a great opportunity to earn extra income from their creativity and create exclusive content for their fans. Read also here how to apply FirstNationalCC. 

NFT’s potential in the music industry

In most cases, when people purchase music NFTs, they do not purchase the rights to the audio or song, but rather pay for the virtual bragging rights and the opportunity to support artists that fans consider to be undervalued in the traditional industry. At the same time, NFTs allow artists to earn income without commissions and open up a huge field for creativity, because they can sell all kinds of digital assets: songs, albums, merch, concert tickets and more. All of this allows for better control over their work, while providing alternative ways to monetize art and opportunities to create other digital goods.

Even major industry players are following the new trend. For example, Warner Music Group is partnering with Genies, a digital avatar and apparel company. And Universal Music Group has partnered with Bored Ape Yacht Club to create a virtual music group called Kingship.

How NFTs will affect the future of the music industry

As NFTs make radical changes in various areas, artists are beginning to reclaim full ownership of their work and release music on their own without the middlemen that music labels and streaming platforms typically are. Moreover, the leading representatives of the industry use NFT and similar technologies to create virtual bands and release tracks in the meta universe.