NFTs in music, how do they work in this sector?

By now you will have heard of NFTs. Non fungible tokens are a digital or virtual cryptographic item that represents something unique, as we saw in a previous article. Everywhere there are projects related to NFTs and the metaverse. And digital music also has its space to develop new ideas and innovate in the musical field.

First of all, if we do an online search, we will find that there are already spaces that unite digital music and NFT. Online markets such as AirNFTs or OpenSea already have specific spaces for music. Come on, you can acquire, through cryptocurrencies, musical NFT content. The question is, what does a musical NFT consist of?

Using blockchain technology, an artist can turn a song or video clip into a music NFT and put it up for sale. And as with other NFT content, it is still not entirely clear what does that NFT consist of and what is it for, apart from create it, sell it or buy it. Let’s see what a musical NFT is and what possibilities it offers to the world of music.

From streaming to NFT, music evolves

The online market for NFTs AirNFTs explains it very well. “The music industry has seen many transformations over the years.” Although he forgets live music and concerts, he remembers the changes in the music market at the level of formats, from cassettes to compact discs. Currently, we all consume music through music platforms such as Spotify, Apple Music or Movistar Música. Music on all your devices over the Internet.

The NFT stands as an evolution of music. Or rather, as one more alternative for musicians and singers to have a additional source of funding. In addition to the records themselves, the reproductions, the concerts, the merchandising and/or the appearances in television, fiction or video games, the music can be acquired in the form of NFTs that give the buyer a unique digital element. Going back to the words of AirNFTs, “In the world of music, artists manage to sell limited digital content to their fans who pay through cryptocurrencies. now you can produce any musical content that cannot be falsified.”

There are several examples of what gives the NFT in digital music. For starters, release limited editions of music albums. Each edition is an NFT, a limited copy for sale online and with exclusive content. But there is more. Physical or virtual merchandising, musical rights to a specific song or piece… In short, any virtual element that can be manipulated and seen or heard, is likely to give rise to an NFT that will be sold and resold in the markets or marketplaces of the crypto ecosystem. .

Examples of music in the NFT market

One of the most important news related to digital music and NFT occurred in February of this year. Coachellaone of the most innovative and popular music festivals today, announced tickets for your festival in NFT format. And not tickets for a single festival. Tickets for life. 11,010 NFTs divided into three collections that were equivalent to tickets to the festival, unique experiences once inside the festival and/or other gifts and exclusivities. A way to sell alternative tickets and bypasses the usual intermediariesso criticized in recent years for overpricing and/or problems accessing purchase platforms.

The rights or royalties on digital music are another of the great outputs of the NFT. One of the most recent cases is that of the hip hop singer nas. Two of his latest hits, awarded with two Grammys in 2022 and 2021, were put on for sale in the form of NFTs. In total, 760 tokens that gave ownership rights over the reproduction of those songs on streaming platforms. Depending on the purchased token, the owner receives a percentage of the royalties. A very small portion in percentage but that means “owning” songs as reproduced as Ultra Black or Rare. In practice, it is one more way of contributing to a group or singer of our liking beyond go to their concerts or buy their music.

Other NFTs play with exclusivity. At the end of 2021, a song by whitney houston that had not yet been published. An exclusive song that corresponded to an audition that the singer did at the age of 17. The ideal NFT for collectors and fans Of the singer. The song, accompanied by an exclusive video clip, was sold for almost 1,000 dollars Americans. Of course, this time the money went to the singer’s foundation.

In short, the NFT opens the doors to digital music to create new ways of interacting with the public. A twist to what the singer or musician can offer to their unconditional fans and an alternative to finance new albums and projects bypassing the major record labels. And it is still for all that the NFT can give in music and other audiovisual and media sectors. content creation.