Note: This article is a summary of research and is not financial advice.
Musicians are using NFTs to sell their music as unique digital assets, creating a whole new way for fans to own and experience their favorite songs.
What is NFT music?
Music NFTs play an important role in the Web3 economy. They're designed to provide a secure and transparent way of buying and selling digital content, including music and visual art. NFTs, or non-fungible tokens, are unique digital assets stored on a blockchain.
The benefit of owning a music NFT is that it provides a way for fans to own a piece of the music they love. Traditional music ownership involves purchasing a physical or digital copy of the music, but with NFTs, fans can own a unique and limited digital copy of the music.
If you're completely unfamiliar with NFT music, check out a project like WVRPS on Opensea. You can click play on an image to listen to the image's NFT song. The screenshot below shows the site's layout if you don't feel like navigating away.
Chaos: Our favorite NFT music super-project
Here at AudioCipher we're always on the lookout for innovative music projects that dream big. To date, our favorite Music NFT project is Chaos by Songcamp.
Chaos is a "headless" band consisting of ~80 artists. They came together for a six week period, forming three-person bands that changed members every two weeks. Ultimately, they were able to finish 45 studio quality songs and create 21,000 music NFTs.
"Upon minting a Pack, you receive 1 Pack NFT. You then have the option to open your pack, which will burn the Pack NFT and randomly mint 4 music NFTs." - Chaos.build
Each of the four music NFTs that comes in a pack has its own visual fingerprint. We estimated that 466 original images were minted for each song.
Songcamp is the web3 lab that brought the artists together. They go on to showcase their works, demos, and ideas on a site called Present Material to provide fans with a view on their songwriting process.
Be sure to sign up for the Songcamp Discord. They facilitate a supportive and inclusive community where musicians can create and share new content.
How to sell music as NFT
To sell an NFT, a creator first has to upload music and art to a blockchain platform. The NFT is minted with a unique digital signature that verifies its authenticity and ownership. A minted NFT can be bought and sold on marketplaces like Opensea and Nifty Gateway.
Selling is about more than putting your music up on a marketplace though. Social media platforms such as Twitter, Instagram, and TikTok can be powerful tools for marketing your NFTs. Here are some of the basics to keep in mind:
NFT Marketplaces: There are several online marketplaces specifically designed for buying and selling NFTs. Artists can list their NFTs on these platforms to reach a wider audience and potentially attract new collectors.
Influencer Marketing: Collaborating with influencers and celebrities can be an effective way to reach new audiences and generate buzz around NFTs. Artists can offer NFTs as a part of a giveaway or promotion, which can help to increase exposure and drive sales.
Email Marketing: Building an email list of fans and collectors can be a valuable asset for promoting NFTs. Artists can send newsletters and updates about new NFT releases and special offers, keeping their fans engaged and informed.
PR and Press: Securing press coverage and media attention can be a powerful way to generate interest and excitement around NFTs. Artists can reach out to blogs, podcasts, and other media outlets to pitch their NFTs and share their story.
Overall, the key to marketing NFTs online is to build a strong brand and community around your work. By engaging with fans and collectors, creating high-quality and unique NFTs, and utilizing a variety of marketing channels, artists can increase their chances of success in the competitive world of NFTs.
Music NFT royalty structures
Music NFT royalties work similar to traditional music royalties. They provide a way for artists to earn revenue from their music. When a fan purchases an NFT, they are essentially buying a piece of the music and artwork. The artist who created the NFT receives a percentage of the revenue from that sale.
The percentage of revenue that the artist receives varies depending on the platform where the NFT is sold. Some platforms take a higher percentage of the revenue, while others allow the artist to keep a larger portion. Additionally, some platforms allow artists to set their own royalty rates, which can be adjusted based on the demand for the NFT.
One key difference between music NFT royalties and traditional music royalties is that the artist receives the revenue directly from the sale of the NFT, rather than through a record label or distributor. This provides a more direct connection between the artist and their fans, as well as a larger percentage of the revenue for the artist.
We've recently published an article on AI music royalties, which goes more into artist remunerations and the ethics of training on other people's music.
In conclusion, music NFTs are a new and exciting way for artists and fans to interact with music. With the ability to create unique and irreplaceable digital assets, NFTs provide a new level of ownership and connection between artists and fans.
Mike at One37 compiled his list of the best music NFT projects, and Pitchfork has authored a thoughtful piece on how music NFTs are shaping the way music sounds. For a deeper technical dive on how to buy and manage a collection, check out the Music NFT Bible by NFTNow.
As the music industry continues to evolve, it will be interesting to see how NFTs continue to shape the industry and the relationship between artists and fans.