NFTs are Bringing Back Democracy in The Music Industry

NFT

NFT

Here’s how NFTs help to democratise the music industry by redistributing song rights

The music industry is constantly coming up with new ways to incorporate decentralized technology into new releases that benefit both artists and fans. R3HAB, an EDM artist, and another block, a blockchain-based music community, released a single on Friday with the goal of “democratizing music rights.” Holders of the nonfungible token (NFT) included in the drop can earn royalties based on streaming popularity. The single, “Weekend on a Tuesday,” was released alongside an exclusive NFT. Each of the 250 available NFTs entitles the holder to 0.02% of the streaming revenue. Anotherblock’s platform includes a value tracking tool that allows holders to forecast payouts and overall value.

Many artists have been using digital assets to connect with their fan base through NFT-related exclusives. Extras are typically artwork, additional music, or behind-the-scenes footage. Another block CEO Michel D. Traore said that this way of implementing NFTs allows those who create value around songs to take part in receiving some of it back. The concept behind this vision of spreading the value from record labels and music catalogs to include more artists and fans can be viewed as a “democratization” of the music industry.

While it’s easier to introduce these concepts to larger artists like R3HAB and Steve Aoki, doing so only allows up-and-coming artists to enter the industry with these concepts before committing to a restrictive contract. In an interview with Cointelegraph, R3HAB emphasized EDM fans’ affinity for new “cutting-edge” technology such as NFTs. R3HAB stated that his team had studied fans’ interest and engagement with Web3-based platforms. Another block polled its Discord community on music genres of interest for NFTs, according to Traore, and EDM came out on top, followed by HipHop and R&B. Furthermore, according to a recent Ripple report, 55% of major financial institutions are interested in music-related NFTs.

As the crypto industry refines itself in the aftermath of the market crash, projects that lack real value and utility are being pruned. Traore sees the link between real-world value and music rights NFTs as a sign of something long-lasting.