NFTs were first introduced in 2017 when video game developers adopted them. Following this, a few startups began experimenting with using NFTs to streamline back-end and catalogue processes for TV/film content creators, help artists track ownership, and better organize music albums and concerts for promoters, among other things. If you are interested in jumping on the NFT train, visit https://nft-profit.me/.
Several musicians have begun embracing this new technology to break free from the constraints that come with labels.
Direct peer-to-peer (P2P) distribution platforms are based on the Ethereum blockchain to create a transparent and efficient infrastructure that empowers independent artists. Blockchain technology allows artists to distribute their music and set their own sales prices while retaining ownership over their music.
Furthermore, blockchain technology makes it possible to track music purchases, allowing artists to be compensated accurately and transparently. This model would undermine the need for third-party verification by labels and publishers.
Every time an artist’s song is purchased on NFT centric streaming platform, the artist would receive payment instantly by intelligent contract without any manual intervention. Called the “first generation” of NFTs, these artefacts are “digital assets that are self-sovereign and have their native token.
Some critics say that NFTs would hamper the ability to stream services’ advertising revenue because it would not be possible to track where ads are being consumed.
However, the ad tech industry is rapidly evolving to make NFTs more attractive for advertisers. For example, companies are using Ether (the native cryptocurrency for the Ethereum network) to develop a hybrid token that would allow NFTs to hold advertising space on streaming platforms without giving up total ownership.
Famous streaming platforms are testing NFTs:
Today’s streaming services like Spotify are already testing this technology with a few artists to compensate them in their native tokens. To launch NFT-related streaming platforms, there will need to be enough people interested in buying music directly from the artists.
The music industry is one of the most innovative in adopting new technologies such as blockchain. Still, it could eventually increase the control, and access artists have over releasing their music while encouraging them to experiment more with their songs and releases. In time, NFTs could even help solve contract disputes between labels and artists with different interpretations of contract obligations.
Music Labels using NFTs:
The music industry has been using blockchain technology in many ways to solve problems plaguing the industry for quite some time. For instance, they are looking to utilize blockchain technology to create a trustworthy and more efficient back-end and record-keeping system, which will enable them to organize better the music catalogues of record labels in markets where there are no traditional record stores.
Since the tracking of their assets and revenues is done on a transparent and immutable ledger, it can help with patent management, royalty payments collection and distribution, and other legalities.
The music industry is also developing an NFT portal that would utilize intelligent contracts and blockchain technology so musicians can sell their songs directly from within the portal. It would be a centralized platform that links them with other musicians, producers and labels worldwide.
Record Labels and Publishers using NFTs:
It is possible that some legacy record labels can eventually decide to give up control over the new model offered by blockchain technology as it will allow them to be compensated across various platforms through cryptocurrency. And since they are not running their streaming platforms, they can focus on selling their artists’ music directly while maintaining control.
Amazon is reportedly planning to use NFT technology to offer bands a central marketplace to set their price for each song. This concept might also pave the way for more exclusive releases than currently available through streaming services like Apple Music or Spotify.
International Reach of the music:
The music industry is a big part of the global market, and one way to reach out to more fans worldwide is by thinking outside the box. The use of blockchain technology will help them to do just that because people across multiple platforms can easily use it.
One example is Taylor Swift, who proved that she was being underpaid for her work in a year for purely mathematical reasons. Blockchain technology would ensure accurate payouts since it uses sophisticated algorithms adapted in real-time from music streaming data analysis performed over the last few years.