But, instead, they become the value itself – while the NFT is the thing that is added. The next generation of women music.Īs with many recent NFT releases, these ancillary elements are used to market the NFT and are intended as added value. The last two years of pandemic-driven disruption in the music industry may just have created a window of opportunity for real change in the fight for gender equality. Each token also unlocks a range of exclusives: access to a Discord server and secret menu at chain restaurant Sweet Chick for the lowest tier a merchandise item for the middle tier and VIP concert tickets, a signed vinyl, and a video conversation with Hit-Boy for the highest tier. On the other hand, many fans may have purchased tokens not for the investment potential, but rather for the novelty of owning a piece of a Nas song. Anyone who invests in the Nas drop expecting a solid payday will be both confused and sorely disappointed, and the experience may turn them away from crypto music projects in the future. While this napkin math should ring alarm bells for anyone in the music industry, the average music fan is blissfully unaware of streaming economics. This is unlikely to happen anytime soon, as the song has accumulated only 8 million Spotify streams since its release in August 2020. As Music Ally pointed out, a fan who purchased the highest tier and spent $4,999 for 2.14% of ‘Ultra Black’ will only turn a profit once the track has been streamed 34.3 million times. However, the equation all but falls apart when you consider the economics of music streaming, where very few artists can generate meaningful income.įor the Nas drop, fans could purchase between 0.0133% and 1.5789% of Nas' streaming royalties for the track ‘Rare’ and between 0.0143% and 2.14% for the track ‘Ultra Black’. Everyone wins when the artist becomes more successful, and the earlier you invested, the higher your return. Platforms like Royal align incentives between artist and fan, reward early supporters, and pave a new path for artists (particularly independents) to monetise their work. Streaming royalty investments: It does not add up In the meantime, other music crypto projects that circumvent the traditional system entirely are building a new and parallel music industry. However, by building atop of the incumbent music rights framework, some drops are simply dragging all of its issues over to unknowing fans, thus damaging fan sentiment around the crypto space. The 3LAU-owned Royal is part of a growing list of companies that use blockchain technology to sell fractional ownership of music rights, including Republic and Vezt. The drop was delayed by a week after high demand crashed Royal’s site, signaling potential for the concept of fans and artists co-owning music rights. Last Thursday, a Royal NFT drop allowing fans to purchase a share in the streaming royalties of two Nas songs sold out within minutes.
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