Music Industry has a new Business Model in the shape of NFTs: Here’s Why
When Grace Christian and her neighbor started recording music together at the age of 15, she did not know she would be using NFTs to move up in her career. The psychedelic pop artist, also known as Mazie, always has this “do it by yourself” approach to music, making an independent music label with her producer to keep everything private and under control.
What are NFTs?
Non-fungible tokens (NFTs) are authenticity certificates shown as proof of ownership for digital collections. Among other categories, these tokens are initially allocated to unique digital music, sports memorabilia, and virtual real estate.
NFTs and the Music World
NFTs are providing a new business model to the music industry, emancipating several artists to fund their careers through them. At the same time, simultaneously, fans can earn as the artists grow and NFT increases in value.
In a recent interview with Yahoo Finance, she said that this is a massive opportunity for her to give her fans the chance to invest in her and provide such a relationship that if she grows, her fans grow with her. Now, she is among those small groups of specially picked out artists who will sell NFTs on Quincy Jones-backed NFT platform OneOf.
OneOf is one of the most well-known music platforms heading the MFT music charge. Other platforms like Royal are also claiming the same, while Coinbase (COIN) just introduced their NFT marketplace partnering with various artists for exclusive drops.
OneOf, an NFT platform supported by Quincy Jones, a 27-time Grammy award-winning record producer, who has worked with icons like Frank Sinatra and Michael Jackson, has presented NFT collections from the Grammy Awards and prominent artists like Doja Cat. Now OneOf is introducing a new initiative called “rookie cards” that will help the independent and contemporary artists sell NFTs.
Initially, artists were to find a record or publishing deal to earn money so they could either record songs in a professional studio or make professional videos. Now, they can use the funds generated through NFT to support themselves.
Taking a loan for themselves
Through NFTs, artists can earn royalties which gives them a portion of the sale when their record is first sold, as well as every time it is resold in the market. This means that after the original artist sells the NFT for the first time, the buyer can resell it in the secondary market, resulting in the original artist receiving royalties on that secondary sale.
OneOf’s new program, called CO//SIGN, can help you start the process, generating continuous revenue where the artist has an economic relationship with their fans. CO//SIGN will emphasize the breakout and exciting artists and propose them with innovative, financial, and marketing support. Each artist will have their own “rookie card,” trading card-style 3D animated NFT for sale through oneof.com, and receive a considerable portion of the earnings regularly, making a lifelong source of revenue through which they can finance their careers. By buying the digital collection, fans directly put money into the artists’ pockets.
NFT platform is centralized on the secondary market where artists make money as NFT appreciates. NFTs range from $10 to $50 with multiple gaming opportunities as the collection of CO//SIGN artists increases. Built on the Tezos blockchain, making NFT on the OneOf platform means using up less energy than other proof-of-work networks, giving them a chance to charge less for NFTs. OneOf gives out a limited number of rookie cards issued to the artists, banking on only a selected number of cards that will increase in value as fans grow in number. However, if NFTs of all the artists sell out, OneOf does not make its back.
The company aims to airdrop new buyers with free NFTs every time an artist reaches a milestone in their career, which will give the fans a motive to retain their original assets. Since NFTs have a wide array ranging from art to sound recording and more, you can earn around $25 billion in overall sales in 2021.
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