Music NFTs: 10,000,000 Streams = 1 NFT, True Fans, Music Royalties

NFT #0084 from the Meta Trends collection.

View on OpenSea

“I made more income from one NFT drop than my 15 year career as a musician.” — RAC

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❓ What You’ll Learn

  • What are “headless” artists?
  • Which CryptoPunk rapper earned $200,000 in 60 seconds?
  • What tools exist to help artists create, sell and manage Music NFTs?
  • What’s an example of a token-gated experience built by a musician?
  • How are artists building experiences for their fans in the metaverse?
  • What do Music NFTs grant you ownership to?
  • How to align yourself with the success of your favorite artists?

💎 Why It Matters

You can align yourself with the success of your favorite artists.

🔍 Problem

Indie artists have few ways to monetize.

  • Streams pay roughly $0.004 each. An immaterial amount unless you’re a large artist.
  • Live performances take time, relatively large fan bases, planning and coordination.
  • Music licensing deals (movies, tv shows, video games) are few and far between.
  • Merch sales depend on building high-affinity relationships with lots of fans.
  • Brand deals may be limited to well-known artists.

💡 Solution

Music NFTs help artists create without compromise. With help from superfans.

Latasha sold “GoGo Wyne” for 13.4207 ETH (≈ $41,000) to Jesse Grushack.

This is equivalent to 10,000,000+ streams.

🏁 Players

Music NFTs

Music NFT Platforms

  • Foundation • Web3 Platform for Creators and Collectors
  • Audius • Music Streaming Service
  • Zora • Protocol to Buy, Sell and Curate NFTs
  • Catalog • Digital Record Shop
  • Mint Songs • Music NFT Marketplace
  • Royal • Music NFT Marketplace
  • Opulus • Music Copyright NFT Platform
  • Enter • Visual and Audio NFT Marketplace
  • Sound • Collect Music NFTs 
  • Power • Web3 Music Platform

Music NFT Communities

🔮 Predictions

☁️ Opportunities

🏔️ Risks

  • Legal or Lit? Platforms make onboarding faster and easier. Be careful to avoid legal hiccups.
  • Choosing Chains • There are trade offs to consider when choosing which chain to use. What’s more important to you? Security or transaction costs?

🔑 Key Lessons

  • Fans will support artists regardless of the model. Nipsey Hussle sold 1,000 copies of Crenshaw for $100 in 1 night
  • Artists must understand the business of music and the creation of music to retain artistic freedom.
  • NFTs do not prevent others from enjoying art. The more they enjoy it, the more valuable ownership becomes. This resembles a patronage model.

🔥 Hot Takes

  • Fans will use Music NFTs as “proof of discovery.” A symbol to show how early they were to (and how much they) support their favorite artists.
  • Unofficial fan clubs will emerge around Music NFTs. Owners will use tools like Guild to meet others who have skin in the game. See Tesla car clubs.

😠 Haters

“I can listen to music without buying NFTs.”
Sure. If you want more, Music NFTs offer unique experiences. Direct relationships with artists, early access to future drops and access to communities with other true fans.

“NFTs mean more hassle for musicians.”
Managing your career as an independent artist means more “hassle” and ownership. There’s no free lunch. Commitment to continued growth is a prerequisite for creative freedom. 

“I don’t understand the value of Music NFTs. Do they give me royalties?”
There are patronage models and ownership models. Platforms like Royal focus on royalties. Music NFTs may prove to be more valuable as collectibles than financial instruments.

🔗 Links

📁 Related Reports

🙏 Thanks

Thanks Cherie Hu, JAWAN.mp3, Lyrah, Azeem Khan, Candace Stewart, Stefan von Imhof, Asher Fishman, Arslane, Bogusz Pękalski, Maciej Cupial and Omari Harebin. We had a great time jamming on this report.

✏️ Devin researched and wrote this report. Dru researched and edited this report.

📈 What else?

Trends PRO #0085 — Music NFTs has more insights.

What you’ll get:

  • 17 Music NFTs (142% More)
  • 21 Music NFT Platforms (110% More)
  • 6 Music NFT Communities (100% More)
  • 7 Predictions (133% More)
  • 10 Opportunities (150% More)
  • 4 Hot Takes (100% More)
  • 10 Links (233% More)

With Trends Pro you’ll learn:

  • (📈 Pro) Which artist made $11,700,000 from a Music NFT?
  • (📈 Pro) What are Soulbound NFTs?
  • (📈 Pro) How to calculate the costs and benefits of record deals?
  • (📈 Pro) Which company wants to become Shopify for NFTs?
  • (📈 Pro) How do artists gamify Music NFT releases?
  • (📈 Pro) What are examples of tickets as NFTs?
  • (📈 Pro) How to manage and split royalties?
  • And much more…

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