The impact of NFTs on the music industry
- NFTs are influencing the music industry by offering cryptocurrency-backed record labels.
- One of these companies is StarCoin, the world’s first cryptocurrency-backed record label.
- StarCoin allows for a 50/50 split between artists and record labels.
- Raise funds for artists through taxes incurred on the NFT Marketplace.
NFT — Non-fungible tokens of digital content linked to the blockchain are rocking the music industry. NFTs can be in a variety of formats as long as they are digital. One of the attractions of NFTs is that the token to which the NFT is attached acts as a proof of authenticity that proves possession. Owning an NFT makes you the sole owner and cannot be duplicated. Since NFTs are on a publicly verifiable blockchain, you can easily detect if two files on the blockchain are identical and identify which NFT is not genuine. The real digital NFT work itself can still be shared or duplicated, but the ownership of the NFT associated with the token is unique and reserved exclusively for its owner.
This new technology is already impacting the music industry in several ways. Method is as follows.
Providing an additional source of income for artists
NFTs provide artists with an additional source of income and, in some cases, a significant source of income. A wide range of musicians such as Grimes, Steve Aoki, Kings of Leon and Ozna have earned millions of dollars through NFTs. NFTs are a new scene, but some of the world’s most creative and innovative artists have jumped at the opportunity to diversify their sources of income. This is partly due to existing flaws in the music industry and often benefits streaming platforms and record labels over artists. Alesso — A world-renowned Swedish DJ said that when a song was released on a streaming platform such as Spotify (NYSE 🙂 or iTunes, “if it’s not a global hit, you won’t get the real money.” increase. The cryptocurrency “can save many people’s careers and make money from their own art,” he added. He is right Artists earn an average of $ .0006 per stream on traditional streaming platforms. This means that you can only earn $ 600 for a million streams of songs. Sounds unfair, doesn’t it?
It’s no wonder artists are finding creative ways to earn money through NFTs. Many artists release exclusive videos, songs, albums, concert tickets, fan club memberships, digital art in NFT format, which fans can buy through cryptocurrencies such as Ya. One of the main advantages of this is that the artist can decide whether to sell only one copy of the NFT, or to make it super-exclusive by selling tens or hundreds of copies. One NFT digital art by Steve Aoki sold for $ 888,888.88. An artist who wants to do just that with songs on a streaming platform will need 1.48 billion streams.
Allows fans to better connect with celebrities
NFTs connect artists and fans like never before. Post Malone in March announced that it will sell NFTs that allow owners to play beer pongs for him. NFTs do not have to be digitally collectable. They can also be the key to unleashing an exclusive experience with an artist. Some companies like Fyooz are dedicated to creating an experience between fans and celebrities through artists. Other companies like Dropper allow fans to compete for celebrity NFT merchandise, allowing top fans to unleash their experience with celebrities. One of the main reasons why using NFTs to enable fan celebrity experiences is so attractive to celebrities is that the blockchain technology that underpins NFTs is the revenue generated by celebrities selling these experiences. It means that you can get 100% of. You do not necessarily need a third party who may receive some of these funds.
Record signature changes for the better
Another important way NFTs are influencing the music industry is to provide encrypted record labels. This allows artists to generate far more revenue from album sales than traditional record label settings. One of these companies is StarCoin, the world’s first cryptocurrency-backed record label. StarCoin allows you to split artists and record labels into 50/50. In today’s music industry, artists usually earn only 10-20% of the profits they get from selling albums, and 20/80 or 10/90 splits are the most common setting for record labels. I support it. Traditionally, when a record label signs an artist, it gives the artist a loan or “prepayment” to create an album. The artist does not make any personal profit from selling the album until he repays the loan. However, StarCoin does not incur any debt to the artist, as he is making money through taxes on the NFT Marketplace to fund the artist’s creation of the label. NFTs are definitely changing the music industry and are definitely heading in the right direction for both celebrities and fans.
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