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The music industry is well-known centralized, with major record labels often controlling nearly every facet of an artist’s career — from which songs they are allowed to release to what percentage of the royalties they keep and more.
While the rise of streaming platforms such as soundcloud and spotify has contributed to the democratization of the industry and has made it much easier to put your music before more ears, it is still difficult to build a dedicated fan base and generate sufficient income to survive.
While the expansion of streaming platforms like SoundCloud and Spotify has contributed to the democratization of the industry and has made it much easier to get your music in front of more ears, it is still difficult to build a dedicated fan base and generate sufficient income to survive. For those in the blockchain space, nonfungible tokens represent an opportunity for fans to directly support their favorite artists, for musicians to build stronger communities with their listeners, and for content creators to build more substantial and sustainable income streams.
To better understand the topic, Cointelegraph’s new podcast The Agenda sat down with Adam Levy, host of Mint — a podcast exploring the Web3 creator economy — and Jay Kila, a crypto-native rapper based in Mumbai who founded OTP India — a digital-collectibles and fan-engagement platform for Indian hip hop artists.
What is music at work?
Levy told The Agenda co-hosts Jonathan DeYoung and Ray Salmond that music NFTs generally fall under two categories. First, property rights, which are "primarily associated with [intellectual] property rights and royalties. One is property-based free trade agreements, which "are essentially related to intellectual property rights and royalties".
As a result, when you purchase the DTV, you are now entitled to the accumulation of revenues generated by Web2 audio delivery platforms such as Spotify, Apple Music, etc." Then there are free trade agreements based on patronage, which do not give property rights to copyright holders, but are "collected to support an artist".”
“It really just comes down to tokenizing an audio file and being able to set that up out in the open market and find a collector buy that, engage with that, and join you and your journey as a creator in the music industry.”
'It's really enough to tokenizing an audio file and be able to implement this on the free market and find a collector to buy, get involved in it, and to join you and your journey as a music creator."
Jay Kila told The Agenda that he first became interested in music NFTs in early 2020 after most of his performance opportunities disappeared with the onset of the COVID-19 pandemic. He was inspired by the fact that this new technology offers a new way for artists to earn a living that was an alternative to the traditional model. It was there that he and a friend founded Otp India.
"I just thought it was really cool for you to be able to sell a N.T, and even if you sold it for three hundred dollars, right, This is more money than you will see 10 years from now as an average artist,' he said. I just thought it was really cool that you were able to sell a NFT, and even if you sold it for three hundred dollars, right, That's more money than you're going to see from Spotify ten years from now as an average artist,' he said.
Spotify says it paid out $7 billion in royalties in 2021 alone, a figure the company claims “is the largest sum paid by one retailer to the music industry in one year in history.” Spotify claims to have contributed $7 billion in royalties just in 2021, According to the company, this is the highest amount a retailer has paid to the music industry in a year. Plus, Spotify reportedly pays only $0.003 to $0.005 per stream, and major record labels negotiate higher payouts than independent artists receive.
$1.85 (~$5.7K) levy in one week.
this was generated by 36 people.
1.4 million coins would be required to generate that on spotify.
not counting the primary sale of 10 ETH (~$31k) which is the equivalent of 7.75 million plays
136 people generated more than 9.1mil people. pic.twitter.com/cmwyI0yMa1
— rac.eth ??-? (@RAC) April 20, 2022
According to Jay Kila:
“NFTs are kind of like the last hope, I think, for independent artists to transition into this model where you can actually get money for your music in a much more direct way. Pic.twitter.com/cmwyI0yMa1— rac.eth ?? -? (@CARs), 2022According to Jay Kila:"ETFs are a bit of a last chance, I think, for independent artists to make the transition to this model where you can actually get money for your music in a much more straightforward manner.
Building a relationship between artists and fans
Establish an artist-fan relationship. The Mint podcast itself practices what it promotes and issues free NFTs to its fans as a way to reward its loyal listeners, grow its audience and generate excitement.
"When I deliver these free NFT, there is a ripple effect, and I get thousands and thousands of visits to my Web site," said sampling. I receive so many new followers, new listeners, and the ecosystem grows with each season.”
Related: NFTs are a game changer for independent artists and musicians
Related: ETFs change the game for freelancers and musicians. "Every artist card we have is priced at $27 because we wanted it to be affordable to the average person," he said. "We charge $27 for each artist card because we wanted it to be affordable for the average person," he says.
It's not really a matter of getting the money.
It's about connecting the fan with the artist and then building the community."
To learn more about music NFTs and how Levy and Jay Kila are using blockchain to build community and monetize content, tune into the full episode of The Agenda on Cointelegraph’s new podcasts page, Spotify, Apple Podcasts, Google Podcasts or TuneIn.
The Agenda is a new podcast from Cointelegraph that explores the promises of crypto, blockchain and Web3, and how regular people level up and improve their lives with technology. Be sure to check out Cointelegraph’s other new shows by heading over to the new Cointelegraph Podcast section.
