An Introductory Guide To NFTs In The Music Industry
What are NFTs?
Non-fungible tokens are a form of cryptocurrency. Think of cryptocurrency as a fancy box that cannot be tampered with or broken, and within that box, information can be safely stored inside. This box of information can be anything: money, art, music, contracts, essays, etc. Many of us are already familiar with bitcoin or ethereum, and for those cryptocurrencies, the money is kept safely inside the box. Money is considered fungible, which means that its value is interchangeable with other money.
Who You Need to Know in the Music World NFTs
NFTs can take many forms in the music industry, including, but not limited to, ticket sales for concerts, sample packs, previews of unreleased songs, art, and more. With such growth, it is conceivable that the potential uses of this technology will expand rapidly and the industry will reach far beyond the way NFTs are used today.
Music Industry Companies
Warner Music Team has been a supporter of NFTs for years. In September 2019, long before the current hype, WMG’s Innovation and Emerging Technology division invested in Vancouver-based Dapper Labs, the creator of the cryptocurrency. CryptoKitties, is a game that allows consumers to trade and sell virtual cats. This was the first instance of an NFT, and a year after the investment, WMG partnered with CryptoKitties and Warner-signed Artist Museum to create two limited-edition Cat NFTs inspired by the band.
NFT Transactions
Crypto transactions are secure and instant. There are no middlemen on the exchange, which is what makes NFTs so attractive to artists and fans. Instead of exchanging cryptocurrencies, maestros exchange NFTs. These get in concert tickets, digital content, merchandise, and music. Fans take part in auctions for these tokens, and the highest bidder receives the content in their digital wallet in a safe transaction.
Benefits of NFTs
2020 turned the music industry upside down when it delete live concerts a significant income current for artists and their labels. As the world remains digital, many artists are finding new ways to create and connect and create with their audiences, and NFTs provide a new outlet for them with many benefits.
Difficult For New Artists
The demand for tokens comes from the market for the art of a particular musician. Popular or established acts have no problem putting tokens up for auction and drawing in eager fans. For budding artists, this demand doesn’t exist yet.
Legal Obligation
Some artists have auctioned off the rights to fans to use sample packs in music. The fan buys ownership of the samples for complete creative control. It’s a token of sorts that could lead to legal trouble for the musician later. Established musicians often agree to contracts when they work with record labels. As Artists create and issue tokens, they must beware of violating any of the terms of these Agreements.
Final Thoughts
NFTs are allowing artists to build new probabilities and experiences with their fans. Composers stay creative with what they propose to their fan bases. As the state of NFT develops, it could completely revolutionize the music industry just like how the Internet did.
