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🎶 Music NFTs in 2023: A Hit or a Miss?
What are they and Why do they matter? What you need to know as a Musician and a Fan in 2023 🤩🤩
Gm Gm readers! 👋
It’s been some time since we delivered some lip-smacking crypto snaccs. We know we're a bit behind schedule, but we promise today’s edition is worth the wait. The web3 world has seen whole lotta things in the past 1 month. But that’s not the point today.🤔
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The world of web 3.0 is like the early days of the internet. Some of the big players failed, but others like Amazon, Google, and PayPal thrived. 😲
Imagine if people gave up on the internet because of its initial struggles. That would have been a major mistake! The same goes for Web3 and crypto. Sure, there's a lot of nonsense out there, but that's what Bits n Bytes is here for. 🥳
We'll help you cut through the clutter and understand what really matters. No fancy words, just top-quality info served up in Byte sized crypto snacks 🫂
Let’s take a look at today’s menu😋:
For starters🥜 - A brief on what are music NFTs
For the main course 🍝 - we have a whole platter on what’s the current state of the Music NFTs and what happened since ‘21
And for the dessert 🍨 - We have all the sauce on what will it take to bring them into the mainstream and our 2 cents on the future of Music NFTs
2022 will forever be remembered as the year Eminem and Snoop Dog brought Web3 to the MTV VMAs. As controversial as that was, it showed how Web3 is rapidly becoming mainstream 🤩
The music NFT market was worth a whopping $1240.3 million in 2021, and brace yourself, it's predicted to skyrocket to $42,380.2 million by 2032 with a remarkable CAGR growth of 27.52%. Pretty mind-blowing, huh? 😎
Today’s edition is all about exploring where it stands today and what lies ahead for the artists in this space 👇
In the years 2021 and 2022, there was significant discussion about NFTs shaping the future of the music industry. After the cryptocurrency market experienced a crash in 2022, with many of the major coins reaching all-time highs, confidence in crypto decreased more than its value. 🔻 Nevertheless, experts within the industry are still convinced that crypto has potential. Although, in 2023, 72% of institutional traders are avoiding crypto altogether.🙃
The last 2 years saw the rise and fall of NFTs in a diverse set of domains.😵💫
We may like it or not, but the industry has embraced NFTs. Even though the NFT market may look dead based on the July’22 data, it’s the much-needed prompt for a re-evaluation of the true value of the tokens, and other ways in which they are/can be used.
HWile art and video were the primary domains which saw the adoption of NFTs, music wasn’t left behind.
In March 2021, Kings of Leon’s barrel-scraping When You See Yourself was the first NFT album to be released. The band's revolutionary tokens unlocked special perks like limited-edition vinyl and front-row seats to future concerts for the holders. Snoop Dogg announced making his acquired record label Death Row Records - into an NFT label. Mr. Baby Got Back himself, Sir Mix-A-Lot, even released a series of Bit Butts NFTs, to fundraise for colorectal cancer 😇
But what’s up with them in 2023 ? 🤔
For music NFTs to come back with a bang, the branding issues, amplified by the crash, that surround them need to be addressed before NFT technology can take off in any way. Let alone a big one. 🤯
Many still see NFTs as a Ponzi scheme. While others can’t move beyond the misconception that they are just overpriced, worthless, and replicable digital images. Furthermore, those who take an active interest in crypto and NFTS are instantly dismissed as Crypto Bros (Yes, we said it 😂).
Keeping the tradition of skepticism around emerging technology alive. Despite the many benefits and innovations that the web3 world can bring about in the industry, there will always be uninformed music fans ridiculing the premise of it. It is so much easier to dismiss it with a salty laugh-react on Facebook rather than spend the time to get to grips with it before forming an informed opinion.🤭
Well, that’s what we are here for, to educate you and keep you updated with the whereabouts of the latest happenings without any BS! 😎
But for all our web3 frens who are new to his space, let’s talk about what music NFTs are first 👇👇
What are Music NFTs 🎶?
Well its’s clearly not a bunch of BAYC apes dancing around, eh? 🤣🤣
Music NFTs are a method of converting collectible music files into tokens for sale in the open market. There are multiple types and subcategories of music NFTs:
🎧 Ownership-based NFTs that are linked to intellectual property rights and royalties. These NFTs allow owners to receive a portion of the revenue generated by Web2 streaming platforms such as Spotify and Apple Music.
🎼 Patronage-based NFTs, do not grant ownership rights to the holders. However, they can be purchased to support artists' careers.
🎟️ Ticket for Events: Thanks to the advent of the Metaverse, attending events has taken on a whole new dimension. Virtual devices allow you to experience official concerts and music events from the comfort of your own home, with digital tickets sold as musical NFTs. And that's not all - fans can also receive NFTs as gifts!
And obviously, the possibilities are endless ♾️
How Do Artists Benefit from Music NFT 🤑?
By now, it’s a no-brainer, music NFTs are a game-changer for artists! Here are some awesome ways they benefit from them 👇
🔐 Complete Ownership: Artists get full control over their work with NFTs! They can list them in various marketplaces with better pricing and prevent duplicates. Plus, they can prove their ownership to sellers with a license.
💰Royalties: Most marketplaces allow artists to set a specific royalty percentage for their NFTs. So, every time their NFT is sold, they get a cut of the profit without lifting a finger! Sweet, right?
👥 Community: Music NFTs can help artists build a huge online audience! This is especially great for emerging artists looking to showcase their talents and create a dedicated fan base. They can even sell tickets for virtual events in the form of music NFTs.
🖇️No Middleman: Say goodbye to middlemen! NFTs eliminate the need for agents or labels by letting musicians sell their NFTs directly to buyers. No more hefty fees or payment delays – artists get paid instantly. Yay!
What will it take to bring them into the mainstream? 👀
Remember when NFTs became the coolest thing ever in 2021? 🤔
👉 Yeah, they were awesome but not quite perfect yet. It was mostly because of the way they were marketed, their usefulness, and the crazy high prices that most people couldn't afford.😬
👉 NFTs were supposed to give us access to exclusive stuff like events or our favorite artist's entire music collection, but it was a pain to get involved with blockchain tech and actually buy them. 😟
👉 And some NFT sellers put crazy price tags on their digital art, which made people go "huh?" and some artists got roasted on social media for promoting them. No wonder they said peace out.✌️
👉 So, for NFTs to become mainstream, creators need to lower the costs and make them more useful.
Just like how DVD players started at $500 and dropped to $200 in just two years, NFTs need to follow suit and become more affordable before we can all enjoy them. And speaking of making bank, have you heard of Spottie WiFi - the first cryptopunk rapper? He's the rapper who sold his CryptoPunk for $192,000 in just one minute. Now, that's some serious cash! 🤑
Bruh, How are Music NFTs are enabling independent artists to monetize their careers? 💸
📌 The music industry could be straight-up perfect if the people in charge didn't have such a huge monopoly and actually paid artists what they deserve. But let's be real, finding artists who are happy with how things are now is like finding a unicorn. 😜
📌 We need to make some changes and stop looking at the past with rose-colored glasses - the 70s-90s weren't all that great for most artists. 🤔
📌 In today's crowded creative space, building a fanbase is tough work. You gotta write, record, tour, market, and sell merch - it's like trying to lift a boulder, Hercules-style.✌️
📌 But here’s the good news: ➡️ NFTs are a fresh new way for fans to support their favorite artists, keep them going strong and bring a new level of sustainability to their income streams.
For artists who adopt this technology, it has become a lifeline after the COVID-19 pandemic disrupted income from more traditional sources. 🤩 Prior to the 2020 lockdown, touring was the primary source of income for many artists. However, even in 2023, the demand for live music has decreased as music fans have adjusted without it and cannot seem to make it fit into their lives in the same way as before. For many, attending live shows is now an extra piece of a puzzle that no longer fits.
For those of you who don’t know, Jay Kila, an awesome Indian hip-hop artist, saw the light and took a chance on NFTs. He realized that selling one NFT for $300 could take ten whole years to make the same amount in streaming royalties. Crazy, right?😵
On another note, In 2021, Spotify bragged about paying $7 billion to artists.
But guess what? Most of that money didn't actually go to the artists themselves - it went straight into the pockets of record labels. Not cool, man.
▶️ Even when artists go on tour and sell merch, the venues take a cut. It's like everyone else is getting rich off their hard work except for the artists themselves. 😌 But NFTs are changing the game. They give independent artists a chance to make money directly and disrupt the industry that's been keeping them down for too long.😬
▶️ The big record label execs used to be all about new music tech, but now they're too busy trying to keep their own pockets lined. They're not interested in anything that doesn't keep them rich and powerful.😒
▶️ But at the end of the day, it's the fans who make or break a musician's career. And NFTs can help build those relationships and keep artists paid. So, let's not sleep on this technology any longer - it's time to embrace it and get paid what we deserve.🤓
What do we think? What lies ahead in the future?
📌 NFT’s shift towards utility 🛠️
👉 Now that we've gotten rid of all those greedy and overhyped NFT projects, artists and startups in the Web3 music industry can finally start playing around with NFTs and exploring their possibilities.
👉 In 2023, we might just see some Web3 artists really take off and become popular by selling NFTs. And as Ethereum transitions to a more eco-friendly consensus model, even more, established and up-and-coming artists could get in on the NFT game.
👉 On the music tech side of things, we'll definitely see more companies start using NFTs and incorporating them into their existing services.
📌DAOs could be the gamechanger👩💻
👉 Get ready for the rise of DAOs! Decentralized Autonomous Organizations are all the rage and have proven to be amazing at building communities. In 2023, we might see DAOs taking over the job of record labels in artists' careers. Cool, right?
👉 Artists who are ahead of the game will realize that DAOs are the way to go if they want to keep their independence and creative control while still having access to a pool of money from the DAO members.
So, if you're an artist looking for something different than the old-fashioned music industry, keep your eyes on DAOs!
Coming to the impounding question 👀
Were Music NFTs a hit or a miss after all?🤔
📍 We’d say it’s definitely not a MISS. Music NFT startups have gained the interest of all major record labels, including Universal Music Group, which has partnered with Centaurify to launch 'The Universal Collection' in Norway and Sweden. The collection will consist of 3,333 NFTs and will be available for a free mint in mid-April. In addition, buyers will gain access to exclusive releases, future presales, and a virtual community.😍
📍 In other music NFTs news, Public Pressure has partnered with fashion brand Diesel to launch the first NFT in their series, called 'Fashion', created by artist HoneyLuv. The NFT is priced at $39, has a run of 1,200, and includes a download of a music track.🎶
In addition to all this, M.Verse, a music metaverse startup, has released an NFT collection called '50 Years of Hip-Hop'. The NFT, priced at $50, provides fans with access to the virtual world of the startup, along with opportunities for performances, meet and greets, and collaborations with participating artists such as Havoc (Mobb Deep), Saigon, and Jahlil Beats.🎵🪗
The future is essentially limitless, as there's no telling what form music NFTs could take.♾️
To the moon 🚀🚀
Well, that’s a wrap for today! 😌
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