Music NFTs are a type of NFT that is disrupting the music industry by enabling artists to sell their music directly to their fans, providing them with direct royalty payments and the rights to their work.
Read on to find out what Music NFTs are, how they work, and how both artists and fans can benefit from them.
What Are Music NFTs?
To understand music NFTs, we first need to look at non-fungible tokens (NFTs).
NFTs are unique digital assets recorded on a blockchain that cannot be changed or duplicated. They can represent physical or digital assets like drawings, music, videos, etc. The tokens provide proof of ownership and authenticity, and unlike fungible tokens – like digital currencies – they cannot be exchanged for another of the same kind. Each NFT is verifiably unique.
Music NFTs are digital works of music stored on a blockchain. They are unique digital tokens containing individual songs, music videos, or entire albums that, like other NFTs, act as ownership certificates to their owner.
However, music NFTs aren’t limited to the artist’s composition. They can also include things related to their music, like concert tickets, exclusive access to the artist, and merchandise.
Artists can sell their music NFTs directly to fans and earn royalties from their work through codes embedded in the token. Moreover, they can retain all rights to their music through the sale of NFTs instead of selling their music through a record label.
How Do Music NFTs Work?
First, the artist must decide what asset they want to feature on the music NFT and sell to their fans. They could decide to use their music, merchandise, or concert tickets.
After that, they need to identify which blockchain to mint the NFT. Artists have several options when choosing NFT marketplaces or platforms. Most music NFTs have been minted on Ethereum, but other options are also available.
Popular marketplaces artists can leverage include OpenSea, Binance, Mintable, Rarible, NFT showroom, Nifty Gateway, SuperRare, and Cargo.
There are three main types of music NFTs with different levels of exclusivity the artist can choose for their fans:
- Limited edition: They are tokens limited to a predefined number of editions.
- Open edition: They are tokens that are minted without limits.
- One-of-one: They are tokens minted as single unique items.
Next, the artist needs to inform their fans of their upcoming music NFT drop and what they should look forward to.
Once the fans buy the music NFTs, they become certified owners. The artist can still earn royalties when the NFTs are sold, provided royalty payments have been coded into the NFTs.
The Benefits of Music NFTs
The 2023 Music Industry Report shows that recorded music revenue grew worldwide, with total trade revenues of US$26.2 billion. However, with low revenue payout from streaming services and percentage cuts from record labels and managers, very little trickles down to the musician.
NFTs are revising these traditional revenue models and giving power to the artists.
Benefits for Artists
There are many benefits of music NFTs for the artist, including;
- Creating your music NFTs gives you sole rights to your revenues without the added middlemen. You can monetize all your work and earn money directly from your fan base.
- You get sole control over your music and what you put out there. You can create music your fans love without restrictions.
- Music NFTs are a great way to market and grow your brand. NFTs and music are popular in their own respect, and together they create a dynamic duo in entertainment.
- The exclusive nature of music NFTs can help you build a closer bond with your fans and create meaningful, sustainable relationships.
Benefits for Fans
Fans are also set to benefit from music NFTs in the following ways:
- They get to directly support their favorite artist by buying their music NFTs and own exclusive pieces of music from the artist.
- They get to interact directly with the artist and be part of their fan base.
- Music NFTs can be an investment opportunity.
How to Buy Music NFTs
Finally, let’s take a look at how you can buy a music NFT from an artist you love.
First, you need a crypto wallet that supports NFTs. Then, you must exchange your fiat currency for cryptocurrency and store it in your wallet. Next, choose a marketplace to buy your music NFT and browse the listings until you find something you want. At this stage, you need to do some due diligence and check the history of the music NFT to ensure its authenticity.
Once you know what you want, click on the purchase tab to take you to the checkout page. A service fee will be added to the final price. Finally, after completing the transaction, your Music NFT will be transferred to your crypto wallet, and you can start listing to the song.
Music NFTs can potentially improve the music industry for artists by empowering them with more control over their music and how it is sold. Therefore, music may become one of the most popular use cases for NFT technology.