The museum is breaking new ground with its latest offering. NFTs have gradually evolved from a fringe topic in an emerging market to one of cornerstones of a multitrillion-dollar industry, says Emily Olson, Chief Operations Officer corite,
Nowhere is the uptake of NFTs more evident than in the music industry. Fungible tokens are increasingly being adopted by record labels, mainstream acts, and indie artists alike.
One of the latest examples is the limited edition NFT album. The first will soon be released by Muse, an English rock band that almost everyone has heard of. While it is clear that the band is not the last to use NFTs, it is not clear why it is such a big deal. Let’s take a closer look at the unique benefits NFTs can provide for both artists and fans.
The museum is rewarding its tech-savvy fans
People’s will NFT campaign is quite easy to understand. A collection of 1000 NFTs will be listed for sale on the Serenade NFT platform for £20, or approximately $24. Buyers will receive NFT tokens and a high-resolution downloadable version of the album with digital signatures from the band members. Their names will be permanently listed in the linked roster of buyers.
It is a logical first step for a record label to release a limited number of ‘NFT versions’ of an album. These albums will still be made available through all traditional outlets, meaning the NFT experience could be offered as a bonus opportunity for tech-savvy fans yearning for a more unique and collectible experience.
Muse will be the first band to put out a chart-worthy NFT album, but they’re just passing the baton. They won’t be the last. A similar campaign has been announced by Virgin Music, which is based on Amazon’s third LP . will issue 300 NFT copies of How do I know if heaven will find me? on 2 September.
Other bands (for example, Kings of Leon in 2021) have released NFT albums. The two upcoming albums are notable in that they are designed to be ‘in line with the charts’. This means that NFT sales will be included in the band’s official sales totals. This development suggests that similar campaigns may become increasingly common and widespread in the coming months and years.
Things to consider before issuing NFTs
The production and marketing of a single or album already requires a lot of time and financial resources. Offering an attractive “NFT version” is not as simple as clicking a few buttons. This requires developers and graphic designers, as well as an artist and a fan with some basic knowledge of blockchain.
Here are a few things I think artists and those looking to create their own non-fungible tokens should know. Before making NFTs, you should find out how much you are willing to spend on them. If you want to make it as cheap as possible, choose a blockchain with the lowest fees.
You can mint at night when traffic is very low, and look at the minimum value of the secondary market price. Remember to think about gas, account and listing fees.
The cost of issuing an NFT call can range between $1 and $1000. You will need to invest in marketing in addition to minimizing expenses, so start working on your tokens when you have an emergency fund and a steady income.
Choose a fair price and don’t expect prompt payment from NFTs. A report by Andreessen Horowitz showed that NFT collections with mint prices above 0.25 ETH rarely get returns of more than 10x.
NFTs can give you:
-Residual Income: NFTs can be programmed to withdraw a certain percentage of the transaction value each time they are bought and sold. If a collectible version becomes more desirable over time, it can potentially be bought and sold for much more than its original selling price. In this example, the artist and/or record label receives a long-term source of revenue that is not possible through traditional album sales.
– Ability to stand out in a crowded market. Introducing an NFT album is something that can introduce existing fans to new technology, or introduce tech fans to the artist. Since both blockchain and NFTs have become a topic of discussion lately, being an early adopter may attract attention.
– A new way to attract fans. The release of a limited-edition NFT will pique the interest of dedicated fans. The non-fungible token can be used by artists to reconnect with their music lovers and reward them with exclusive merchandise or other digital collectibles.
Challenges can turn into opportunities
The main challenges are the technical knowledge required and the costs associated with developing and marketing the NFT collection. As this trend picks up, I anticipate the number of platforms that offer NFTs as a service to musicians will increase. This will reduce the barrier of entry and streamline the entire process.
Interestingly, NFTs themselves can provide a solution to one of these challenges by helping independent artists raise the funds needed to produce and market their content.
NFTs as a Crowdfunding Device
alan walker original ep A recent notable example is NFT crowdfunding. The initial fan campaign on Corite allowed fans to share in streaming revenue from platforms such as Spotify. The Origins NFT drop then allowed owners to receive a portion of the music video’s streaming revenue from YouTube.
A total of $47,000 was raised through the NFT sale. This case is a proof-of-concept that can be enforced by small acts going forward. Artists can issue NFTs that claim future revenue to their holders, or even give partial rights to music.
The artist is paid in advance to assist with the production and marketing of their content, while the fan receives the ability to benefit from the artist’s long-term success.
Another example is singer-songwriter Pip’s Cotton Candy NFT campaign, which launched on March 21, 2022. Through this campaign, he hopes to raise 35 ETH, or $109,660 (the rate has since changed). Pip stated on his Mirror.xyz crowdfunding page that he needed funds to release his EP NFT and to set up his own label.
Notably, all 15 Gold Backstage Passes were sold for 0.5 ETH, while only 51 out of 300 Silver Backstage Passes were sold. Therefore, before starting a crowdfunding campaign, it is important to set realistic goals. Building an audience is also important.
Users are now more than just watchers
In traditional models, fan interaction has been a one-way street. For example, they can buy an album on iTunes – their money goes to the platform, label, and artist, and they get the music. But nothing else is found outside the material. The difference between this traditional experience and the NFT experience is that with NFTs, the end user can contribute as well as reward an artist.
In the museum example above, the buyer receives not only the music but also a limited-edition token, which could become a desirable digital collectible for ardent fans of the band. NFTs can also be used to provide additional privileges, revenue entitlements and more.
In every case, the result is the same: end users receive the primary benefit with the added luxury of selling their collectible tokens to a secondary buyer if the price is right. As people become more comfortable using blockchain technology and accustomed to the additional benefits it can provide, I believe the demand for NFT versions of both singles and albums will dramatically increase. Will grow from
NFTs are no surprise; they are the new standard
For many emerging artists, the goalposts have already been moved. Instead of asking “How do I get signed to a major label?” They are now asking “How can I build and monetize a dedicated fan base that is a win-win?”
Countless success stories have already surfaced where artists create their own music, establish a Twitter presence, build YouTube or Twitch followings, get discovered on TikTok, and more. The peer-to-peer nature of blockchain makes it a natural next step for artists and fans to connect directly. ,
Major labels and streaming platforms such as Spotify have also demonstrated that they will move to adopt and adopt NFT technology. The most creative use of Web3 technologies will be by independent artists and upstart platforms. But mainstream companies will take use cases that have built up a proven track record and run with them.
Saraswati is one of the good company
It is unrealistic to expect that NFT will change everything in the music industry at once. However, some blockchain applications will certainly prove to provide a better experience for artists such as museums and fans and become industry standard practice.
One thing is certain – blockchain has sparked a paradigm shift that could turn consumers of content into active participants, asking: “What’s in it for me?” It puts the power of ownership in the hands of fans and artists.
About the Author
Emily Olsson is a Chief Operating Officer corite, A blockchain crowdfunding music platform. He has a previous background in media, specifically writing, podcasts and digital marketing. She has also successfully implemented various charity projects focused on helping socio-economically vulnerable families and individuals around Sweden.
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