In recent years, the music industry has experienced a surge of interest in non-fungible tokens (NFTs) and decentralized ownership models. These digital assets, are changing the way we think about ownership and distribution of creative works. Here are some of the key trends in the intersection of NFTs and music.
Global NFT music market is projected to significantly grow in the coming years. A report by MarketWatch forecasts that the market will be driven by factors such as the increasing adoption of NFTs, growth in the music industry, and rising demand for innovative digital assets. Consequently, deployment models, growth factors, and production costs are all expected to contribute to market growth during this period
Music-related decentralized autonomous organizations (DAO) are on the rise, enabling greater participation and ownership for music fans and creators. These DAOs, such as Audius and SEDA, aim to create more equitable and transparent music ecosystems. They provide funding for new music projects, reward contributors with tokens, and offer governance and decision-making power to their members.
Major artists are embracing NFTs as a new way to release and monetize their work. Rihanna song “Bitch Better Have My Money” was recently sold as NFTs though platform anotherblock, which would allow the buyer to receive a portion of the streaming royalty rights.
Music streaming services are also making moves into the Web3 space. Napster, recently acquired the blockchain-based music platform Audius in an effort to become a more decentralized platform, and give more power to artists and creators. The Audius platform allows artists to have more control over their music and be rewarded more fairly for their work.
More artists, regardless of the genre and the country, are using NFTs as a way to engage with fans and allow them to participate in the creative process. K-pop group TripleS, released an NFT-inspired governance system that allows fans to vote on the group’s activities and decisions. Fans who own TripleS’s NFTs can participate in the governance process and help shape the direction of the group. The governance system was developed in partnership with the blockchain-based social network, Fuse.
NFTs and decentralized ownership models are transforming the music industry by enabling greater participation and ownership for fans and creators. As the market for NFT music grows and more artists and platforms embrace this technology, we can expect to see even more innovation in the way music is created, distributed, and consumed.
Sgnal’s Web3 Consumer Intelligence platform has analyzed over 100 music NFT projects. Reach out if you want to find out more!