The popularity of Audio NFT, often known as crypto music, is driving a genuine uptick in the music business. In February 2021, this new music specialty is expected to generate more than $20 million. According to industry experts, this blockchain-fueled movement will help artists deal with music business challenges and revolutionize the way we acquire, sell, and watch creative material.
In February, 3LAU, a well-known music producer and DJ, made $11.6 million in 24 hours through the selling of music NFTs.
Grimes, a Canadian musician, made 5.8 million dollars in less than 20 minutes by selling Audio NFT a few days later.
Such sums of money usually take years to accumulate for artists. Audio NFTs, on the other hand, allow musicians to communicate with their audience without the need for middlemen.
Here is a guide to help you understand what Audio NFT is and how it affects the music business
But first, let’s see what an NFT is.
What is an NFT?
NFT stands for Non-Fungible Token. It refers to a digitally authorized certificate that cannot be replaced with anything else and is unique. NFTs may represent a variety of elements, including images, movies, audio, and a variety of other digital data.
What is crypto music?
A music collection, melody, goods such as shirts, stickers, or an artwork album are all examples of Audio NFTs. It may be a genre, a media format, and a medium all at once.
How is crypto music changing the music industry?
Stopping music piracy and abuse
As previously said, NFT innovation ensures provision and authenticity, making it more difficult for artists to exploit one other’s work and avoid costly legal battles. It will also be more difficult for people to steal music through traditional methods such as utilizing pirate websites.
No middlemen
There are a lot of agents in the music industry. When fans listen to a song, buy an album, or purchase goods, record labels and streaming services profit handsomely. When fans buy performance tickets, they go through a similar procedure. Record labels in this country also receive a cut of ticket sales. Concerts pay well for artists, but COVID-19 will close the live event business in 2020, severely impacting artists.
Expanding royalties via resales
Following the purchase and selling of their work, playback musicians might earn additional money or royalties. For example, NFT enables the exchange to pay the artists 10% of each sale made when an Audio NFT is traded in the digital commercial centers.
Creating direct connection between artists and followers while also being practical
The main advantage of NFTs is their ease of usage. Fans must create a digital wallet in order to purchase the item. They can participate in auctions to win prizes. This makes buying merchandise from their favorite musicians as easy as shopping online.
NFTs allow fans to acquire ownership of chunks of their favorite music while also providing a method for original authors to protect their intellectual property.
Original content and experiences
The items that artists desire to sell are completely within their control. These tokens can represent digital assets, but they can also represent actual objects. Artists are presently trading NFTs with their followers in the form of digital artworks, music CDs, short clips, merchandising, and show passes. These artists’ fan base is eager to take advantage of these once-in-a-lifetime opportunities and will pay a fair price for them.
No more live show ticket scalping
Non-fungibles and smart contracts can give the help that scalpers often provide. During the epidemic, several blockchain ticketing platforms have emerged, ensuring the legitimacy of digital tickets. The identity of ticket buyers is recorded on these platforms. Similarly, the bands have complete control over how people acquire and resell tickets, making them extremely difficult to scalp.
Closing thoughts
This is how NFTs are altering the music industry’s landscape. Hopefully, you now have a decent grasp of what an NFT is and how it might aid artists today.
At NFTically, you can learn more about NFTs, NFT markets, and how you can utilize them to increase your profitability.
