As Go NFTs, So Goes the Music
It is normal for artists to challenge the status quo. As André Anjos did, who uses the stage name RAC, to be a forerunner, a radical bellwether in how the music industry is evolving.
He earned a whopping $708,000 via the sale of a collection of NFTs that relate to his latest album, YOU! Unlike the current royalties, ownership, and music distribution model that primarily benefits the music companies (who take 88% of the cut), each NFT helps both the owners and the artists. Even though the NFT minted and sold is supposed to be one of a kind, the music or whatever lies within can still be shared, copied, and sold to anyone down the line. The win-win here in the NFT’s value primarily comes from its scarcity — the lower the number, the higher the value, with a potentially astronomical value of the original copy.
This raises the question, are NFTs something that can rescue the music industry while simultaneously building a pipeline for new artists?
NFTs or Non-fungible tokens are crypto assets that are one of a kind. Music fans, thus far, have bought NFTs using cryptocurrency like Bitcoin. The major shift brought by NFTs is unlike the old model of music ownership and royalties. NFTs are sold only as a record of who owns what and then stored on a shared ledger known as the blockchain. The breakthrough here comes in the form of the artist’s ability to set the terms and embed those terms in small code nuggets called “smart contracts,” which pay the artist a slice of any resale value.
Unlike the current royalties, ownership, and music distribution model that primarily benefits the music companies (who take 88% of the cut), each NFT helps both the owners and the artists. Even though the NFT minted and sold is supposed to be one of a kind, the music or whatever lies within can still be shared, copied, and sold to anyone down the line. The win-win here in the NFT’s value primarily comes from its scarcity — the lower the number, the higher the value, with a potentially astronomical value of the original copy.
The evolving use of the NFTs is also happening in the event ticketing arena. It promises to help to prevent scalping and scamming consumers. This way, an NFT as a replacement for any entertainment event can make tickets non-transferable, which would prevent scalpers from purchasing sought-after tickets in bulk and then reselling them at inflated prices. It could also prevent scammers from trying to sell counterfeit tickets.
The team at Animal Concerts and I are on a mission to revolutionise the entertainment industry, with these four objectives:
- To empower the music industry to generate revenues via involvement and collaboration with the cryptocurrency community
- To give fans much-needed interaction with their favourite bands via digital collectables (NFT’s)
- To enable artists to sell VIP experiences via our NFT platform
- To become the household name for concerts in the blockchain industry
NFT’s are a great use case for blockchain and will greater revenue streams for artists, which is solving a long-established problem of artists being underpaid.
Another valuable use of NFTs is that an NFT’s uniqueness, verifiability, and transferability offers musicians much more independence from labels and other industry gatekeepers, thus enabling artists to self-distribute their work and cultivate direct relationships with fans.
The escalated value of ownership and possible free use can also garner benefits such as selling tracks as NFTs on marketplaces like OpenSea, auction previously unpublished material as limited-release NFTs, and even sell rights to their works. They allow only the artist and their fans to decide what is good music and how it should be distributed.
In conclusion, NFTs, their technological characteristics, and their flexibility can benefit both artists and music lovers by freeing the art and the artist from the music industry’s grip on the music we listen to and the almost dictatorial role music industry executives hold in what the public likes and gets to choose from.
If you want to learn more about Animal Concerts is revolutionising the Entertainment Industry visit our website or read our whitepaper.
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