I believe there will be a big revolution in music industry soon because of blockchain and NFT. If you don’t know what I am talking about, check Snoop Dogg’s Twitter.
I recently became a music NFT holder. But I have many questions in my mind. I am writing all of them down as an exploration process. If you have answers to any of my questions, please feel free to leave a comment.
The value of music NFT to a holder/end-user/fan:
What I see right now is that the value of music NFT to artists is bigger than that to fans. I just bought a music NFT — a song called NEW WAVE from a Scottish musician Sam Gellaitry on Open Sea. The dilemma is that I also listen to this song on Spotify for free.
After some research, I found the potential value of a music NFT is like investing in a young artist, and when he/she gains more popularity, his/her works’ value increases as well. Then you can resell the music NFT of his/hers at a better price. So, long-term thinking in NFT investment is essential. For investment-oriented NFT buyers, having the acumen for spotting a future new rising star is the key, same as all other types of investment. But, we will need an evaluation metrics to invest smarter.
Some analysts said as a holder/end-user/fan you also will get a direct connection with the artists. But, personally, I am looking for this connection, I just simply appreciate and enjoy the work of the artists, without any interest to extend this connection to another level.
At the meantime, for fans who just want to show pure love to the artists, they will buy anything from the artists, and they can receive joy through buying the NFT. That’s certainly one of the values of music NFT to fans.
Is there more value of music NFT to holder/end-user/fan I haven’t discovered yet?
The value of music NFT to artists:
- Direct income from the music NFT sold to fans directly. Middle-man is eliminated.
“As reported by Fortune, the typical total revenue split is 50/50 — with only 50% of revenue going to the entertainer and the rest shared among agents, lawyers, and distributors. The reality is even grimmer when it comes to musicians who distribute their content via streaming services. Most of Spotify’s top 0.8% of artists earn less than $50,000 in streaming revenue.”
2. Direct relation with fans without any dependence on any platform, well, still, there will be dependence on the decentralised distribution platform such as Sound.xyz or OpenSea where the NFT transaction happens.
3. It is important that the artist already has over 1,000 fans at least on Web 2, so there is a possibility for his/her fans to go to Web 3 to buy her/his NFT work. However, the entry barrier from Web 2 to Web 3 is just too big for the majority now. I recently heard an NFT artist shared that one of her fans asked her if she can take bank transfer or credit card payment as he really wants to make the purchase of her NFT work, but he doesn’t want to buy crypto, as he has no knowledge about it.
Is there more value of music NFT to artists I haven’t discovered yet?