The Music NFTs industry has undergone major changes in recent decades due to the steady decline in physical record sales and the income streams of artists, labels and audio engineers have changed significantly. While not so long ago, sales were primarily achieved through record sales and live concerts, nowadays several, smaller streams of income are usually necessary in order to be able to live from art.
In addition to streaming income, merchandise, GEMA royalties, concert fees and the like, the direct path between Music NFTs and fans is more popular than ever - Patreon, Bandcamp, Ko-fi, crowdfunding and brand cooperations are just a few platforms and Keywords that have gained in importance for musicians. And if you look at the developments numerically, you will find: Some fans are quite willing to support their favorite musicians financially, but there is often a lack of offers.
Anyone who can secure these so-called "super fans" can look forward to an amazingly reliable income as a content creator. This article sheds light on another way to build a direct trade with "super fans".
In connection with the growing popularity of cryptocurrencies and blockchain processes in general, a new distribution concept for music has recently caused a sensation: Music NFTs! The impact of the headlines is mainly due to the large sums of money that individual artists (including Tory Lanez, Deadmau5, Grimes or Kings Of Leon) were able to achieve with this format on relevant auction portals.
What are Music NFTs?
Music NFTs stands for "Non-Fungible Token" (roughly "non-replaceable character"). Music NFTs are therefore unique goods. They differ from "fungible tokens" primarily in that they have an individual value. It is therefore not a currency unit that can be exchanged on its own and only has a general market value (it doesn't matter which bitcoin or which euro you own, only the quantity counts), but a unique object. Basically, an NFT can represent anything that has an individual value, eg physical possessions or even digital works of art.