Towards the end of 2021, NFTs (non-fungible tokens) were all the rage in the music industry and beyond. Sales surpassed expectations and hit $25 billion in 2021 — a significant increase from the previous year’s $100 million in sales. However, some still don’t understand what NFTs are or how they are valued. The simplest explanation is that NFTs are minted digital certificates on a blockchain that guarantees unique digital asset ownership. These assets can be photos, GIFs, videos, audio, or physical assets such as real estate and artwork.
In the music industry, NFTs are disrupting the status quo. Musicians use them to communicate directly with their fanbase and diversify their distribution channels. In 2021, Kings of Leon became the first band to release an album as an NFT with When You See Yourself. Fans who purchased the albums were given tokens to access additional benefits like limited-edition vinyl and front row seats to future concerts. In addition, Grimes sold her NFT art collection — a total of 10 digital pieces — for a reported $6 million. Other artists like Ne–Yo, Bow Wow, Summer Walker, and The Game have joined together to create the first NFT investment fund, The Meta Panther Club.
While some suspect NFTs are a fad, there is a widespread belief that they will be an integral part of the music industry for artists and fans. Companies are constantly popping up in the space with innovative ideas to energize music. These companies are pushing NFTs and music to the next level.
Royal
Royal enables fans to invest directly in their favorite artists, including Diplo, The Chainsmokers, and Joyner Lucas. Nas made headlines in January 2022 when he partnered with the brand. Fans were able to invest in Nas’ music by buying limited edition shares in the royalties earned from streaming two of his songs, “Ultra Black” and “Rare.” Prices ranged from $50 to $9,999. Royalty percentages ranged from 0.0143% to 2.1400%. The NFTs sold out and put Royal on the radar.
Sound.xyz
Streaming royalties have been a point of contention in music. Musicians of all levels have pointed to an imbalance in royalties awarded to musicians and the industry-low rates given to songwriters. Sound.xyz was founded to help artists release music to wider audiences at a livable wage. Artists can host a listening party for new releases, and fans have access to a series of limited edition NFTs. This allows artists to get more value from their art and interact with their fans.
BAND Royalty
Barnaby Andersun and Noble Drakoln founded BAND Royalty in 2021, intending to create the first Metaverse music label. Through BAND NFT, fans can purchase NFTs that give them access to the BAND Royalty platform featuring music from Beyoncé, Rihanna, Justin Timberlake, and Jay-Z. Additionally, fans have the opportunity to govern new music royalty acquisitions and earn crypto from popular songs and artists worldwide.
Soulection
In 2011, Soulection launched as an independent radio station. It has since grown into a global musical movement featuring an Apple Music 1 radio show, a music label, a festival, a world-touring concert, and a clothing line. The brand has big plans to move into the NFT space in 2022. Soulection teamed up with Sound.xyz to launch Soulection+ Radio. Listeners can purchase NFTs edition of songs played on the show. Some NFTs from their initial drop is free, but fans can buy Golden Egg access. The upgraded access allows them to own exclusive royalties to a song.
To learn about NFTs in the music industry and pursue career paths, download Yellowbrick’s Ultimate Music Career Guide. You can also check out the Music Industry Essentials online course.
