Non-fungible tokens are shaping most industries, and recently, the music industry has now started to feel its impact. Saying this, I’m not referring to music artists purchasing popular NFTs; what I mean is that NFTs are changing how music is owned and distributed.
In the past, musicians had to be signed to a record label or agency, and this record label handled the distribution of the artist’s music. With this process, the artist’s career lay in the hands of the record agency.
However, with the coming of TikTok and social media supporting audio features to allow creators to add music to their content, musicians started getting direct artist-to-fan interaction with no record label in the middle. Now, thanks to non-fungible tokens (NFTs), artists, not record labels, are now at liberty to distribute and monetize their works better and keep the lion’s share of the revenue.
What is an NFT record label?
NFTs are a new type of cryptocurrency that can be used to buy and sell items on the blockchain. They’re like vouchers for goods, but they don’t actually contain any value themselves – it’s just an encryption system with some extra features!
An NFT record label guarantees music artists complete ownership of their unique songs and recordings by providing them a certificate of ownership of the asset. You must also note that with NFT labels, the owner of the NFT is the person who has the exclusive right to control the work and dictate how it’s used.
With the concept of NFT labels, a token of the music work is on the blockchain, and the artists are able to form direct relationships with their fans without the intervention of a music-streaming service or a traditional record label.
Thanks to this new model of the NFT record label, the arist ends up earning bigger revenue from his/her works.
However, NFT labels are not free – costs are involved in the creation of NFTs out of music works. The artist has to acknowledge expenses, of which the most significant is usually Ethereum gas fees. This involved the cost of computing and recording transactions on the blockchain. Another essential expense is the cost of listing and selling the music on an NFT marketplace.
Frequently asked questions about NFT record labels
What is an NFT in the music industry?
With NFT labels, musicians can list their unique works on NFT marketplaces and get a certificate of ownership of their songs or recordings. With this done, the artist has exclusive rights to the work and can singlehandedly determine how the piece of music if used and distributed. Artists are able to sell this certificate to a third party, together with all applicable rights.
How do I NFT my music?
There are special exchanges for creating an NFT of your recordings. To create an NFT of your music, simply submit your recording to one of these platforms, and they’ll help you get it on the blockchain and advertize to investors. Alternatively, you can mint them yourself and sell directly on an NFT marketplace.
Are NFTs the future of music?
At this point in time, NFT seem to be the way to go for unique ownership of assets, including music. Recordings stored as non-fungible tokens have the potential to disrupt the music industry in the near future.