Just a little refresher, what is an NFT again? An NFT offers the possibility of assigning ownership to a (digital) item such as a photo, video or new album! For many people it is still unclear what possibilities NFTs offer for the music industry. In this blog we tell you how musicians can generate additional income with NFTs.
Everyone has an acquaintance, friend, grandfather or grandmother who has old LP-records in the attic. The average music listener won't do much with LPs anymore, but these records can still be worth their weight in gold. The reason some records are so valuable is because only a certain number of copies are issued, which makes these records scarce.
Take for example the album The Beatles - The Beatles (White Album), which was released in 1986. The album started at number A00000 and each subsequent record received a higher number. Number A0000001 of this album sold for $790,000 at Julien's Auction's in the United States.
Now of course the question is, what do NFTs have to do with this?
It has become a common practice to make a Spotify screenshot and show that you were one of the first X% of Spotify listeners of a particular artist. Because - let's face it - it's pretty cool if you were the first to realize that a certain artist was going to break through.
But what if an artist releases 200 copies of a new album through an NFT. The artist's fans can then get their hands on this album and when the artist becomes really big, the value of this digital album will increase. NFTs create scarcity and make it possible to collect digital albums as an investment.
NFTs offer more opportunities than collecting an album from your favorite artist. In March 2021, Kings of Leon released the new album "When You See Yourself. The album went live as an NFT and ultimately earned the American pop band $2 million.
Kings of Leon issued six 'Golden Tickets' in an NFT auction and the owner will get 4 front row seats during all future tours for the rest of their lives.
Album Kings of Leon - NFT Yourself (Source: Musicrow )
Artists can a have numerous additional uses linked to an NFT. For example, NFTs can act as:
Currently, artists unfortunately have to cede a lot of revenue to large centralized companies such as Spotify. This technological development offers an opportunity for artists to generate additional income.
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With web 3.0 the world is starting to move from pages to places. Therefore, we have to change the way we look at art.