Sales of NFTs increased dramatically in 2021, from $ 40.69 million in 2018 to more than $ 44.2 billion It arrived in 2021 and these figures are constantly increasing and setting new records. The industry is projected to reach a market value of $ 80 billion by 2025. Also in December 2021, the value of registered transactions was more than $ 4 billion.
But despite much speculation and skepticism about the nature of the technology, one thing is certain: they have come to stay. NFTs are especially sought after by young people and adolescents as a way to connect with their favorite artists. The music industry is also able to make a lot of changes. Join BingMag to see How this technology will revolutionize the music industry.
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music is a global industry. By the end of 2020, the industry had generated a total of $ 21.6 billion in revenue for music producers, leading to an upward trend over the past six years with a growth rate of 7.4% in the CAGR index or "annual compound growth rate". Is. But despite this seemingly successful track record, the industry is struggling with a lot of problems. Staying in the industry and making a living by selling music is a big challenge for artists. It is no secret that the salary that artists earn to sell their work is very small compared to the effort they put into producing music, and all this is accompanied by very strong and complex contracts that are concluded with music companies by artists and cause The main profits of the work flow into the pockets of these companies.
It has even reached the point where some artists who have grown up in the same system, such as Kanye West, have called the contracting method of these companies "modern slavery." It covers all stages of the contract, including start-up investment, strategic consulting and marketing.
Pop singer Akon says of artist exploitation: "They did not get their full share of the profits from the work they produce and the people who listen to it." "If you do not own your work, there will be masters who will own you and your work," said Prince of Rolling Stone in 1996.
According to reports, only one percent of Top artists in the music industry receive 90% of the total revenue from streams, and about 0.8% of top and top artists earn an average of $ 50,000 a year from streams. The main reason for this is the overall revenue sharing between artists and record companies, agents, lawyers, distributors and other stakeholders in the industry. In addition, recording companies, having full rights to the master or the original version of the song, allow artists to have no control over the place and time of release of their work.
All of these restrictions have led to the formation of a movement. The aim is to overthrow the rule of record companies in the music industry. While social media such as YouTube, TickTook, and Instagram have given some power to content producers as a way to promote and market their music, there is still a long way to go before artists can monetize their work properly through an effective tool. .
NFT Revolution: A Change for the music industry
When the COVID pandemic rules 19. caused a complete cessation of sports activities, concerts and live entertainment, blockchain-based non-replaceable tokens emerged as a way for companies, teams and builders to connect with their fans around the world.
NFT Revolution with a collection of photos Profile picture collections (PFPs) began where buyers could use these NFTs as their profile picture on social media to show that they are part of the NFT community. Celebrities and other NFT enthusiasts bought these images from popular digital galleries such as Bored Apes, Cool Cats and CryptoPunks.
But what is it about NFTs that makes them so different?
To begin with, NFTs are immovable (or immutable) digital files on the blockchain. NFTs based on blockchains such as Atrium, Solana, and the Bainance smart chain are scarce, reliable, and valuable. However, most large NFT projects, such as Decentraland and Axie Infinity, are valuable not because of their artwork, but because of their application that results from smart contracts and infrastructure uses. For example, in Decentraland, digital land can be purchased in-game as NFT, then can be used to host events, rent to other companies, etc.
NFT satisfies music artists and fans
NFTs can return power to composers so that creators can decide for themselves when and where
NFT makes every piece of music made by artists exclusive, and this creates an opportunity for the artist to have a more meaningful relationship with his fan, and then to create a purposeful community around him. Becomes an artist, which will eventually lead to the independence of artists. Artists retain all of their music rights even when their NFTs are sold in a secondary market, and also earn an exclusive patent on every transaction made in the NFT market for their works.
In January In 2022, the popular Korean pop group BTS, along with Dunamu, is set to launch its own collection of NFTs in the form of postcards, digital versions of collectible cards with photos of its band members. Even the popular singer Akon looks like he will no longer partner with record companies and will release his next album in NFT to make money from day one!
On the other hand, fans Whoever buys these kits can easily investigate the authenticity of their NFTs. But the opportunity for transparency is another achievement of music entering the world of NFTs. Invest in art. This allows investors to get a fair share of the profits from the sale if the effect is successful. Others may want to keep these works in order to multiply the price of the works after a while due to their exclusivity.
What awaits the NFTs and the music industry
The introduction of this technology into the music industry allows fans to partner with their favorite artist in creating works of art and eliminate intermediaries. In addition, music NFTs can have more value in addition to their intrinsic value. Physical copies, the music franchise forever, behind the scenes and exclusive remixes are just the tip of the iceberg to reward the community of fans who invest in creating the musicians' work. In fact, the ways in which an artist can communicate with his or her audience and investors are truly endless. It sold $ 1 million, making it one of NFT Music's biggest deals. 3lau has even thought about allowing NFT owners to collaborate with him on the next song, and maybe even on the song! In addition, there are recent examples where artists thinking of making paparazzi photos with NFT can earn royalties. These applications of NFTs have the potential to make the music industry an equal playing field for all artists.