Posts tagged "NFT music"

NFT Streaming and Community-Owned Entertainment

Most people believe NFTs are great since they help launch a creator economy. They’ve allowed thousands of creatives to publish and market their works on their terms. However, the impact of the NFT creator economy might be seen in many other areas outside the arts.

NFT music

DJ 3LAU was the first artist to tokenize an album, generating $11.6 million from the 33 NFTs of the album he sold. His next project, Royal, will aim to revolutionize the music streaming industry.

Royal aims to tokenize music so that its ownership may be transferred to the buyer with the help of $16 million in investment. These song NFTs may then be fractionalized by artists, allowing them to sell a portion of the song’s ownership to fans and investors while keeping the majority share.

The multiple shareholders of the fractionalized asset would then split the streaming royalties equally.

Consider this scenario: a musician you like creates a new song that you believe will be the next great smash. They’ve minted it as an NFT, fractionalized the NFT, and are selling shares in the song via Royal. You buy up 30 percent of the music. A month later, the song became viral. The masses are streaming it, TikTok stars are grooving to it, and Coca-Cola is considering licensing it for an ad.

You and the musician who created the song might cash in on its success if it becomes viral. You’d be able to play the music at parties and tell your pals that you’re a co-owner. You may even make money off of selling your portion of the song.

Thus, listeners may take an active role in helping musicians succeed. They can show appreciation for their most devoted fans by sharing a portion of their future earnings if and when such earnings materialize.

NFT movies and TV series

The voices of Mila Kunis, Chris Rock, Jane Fonda, Seth MacFarlane, and Vitalik Buterin can be heard in the latest episode of the NFT cartoon series Stoner Cats (the creator of Ethereum).

As of this writing, a Stoner Cat would set you back roughly $1,000 (0.3 ETH), and there are only 10,400 of them in existence. Fewer than 5,000 cat owners are allowed to watch the show.

Many people, including yourself, would wonder why someone would spend $1,000 to see an animated show. Buyers, however, get further benefits.

Also, you now own something that may increase in value as time passes and the program or project becomes more well-known.

And this is just the beginning of NFTs’ forays into the realm of popular culture:

  • Fox is investing $100 million into numerous NFT initiatives, including a new blockchain-based animated series.
  • Along with the release of the film Dune, Warner Bros created collectible NFTs.
  • One of Vuele’s newest releases is an NFT featuring Anthony Hopkins.
  • Steve Aoki has successfully raised money for a new NFT show.
  • Disney is introducing digital collectible NFTs in conjunction with Disney+ memberships.
  • Jambb now allows comedians to sell jokes and comedy specials as NFTs.

A Brief Overview of NFT Music

The NFT for music, in general, is tokenized album art or music files stored on a blockchain – a public ledger where transactions can be recorded. The term “non-fungible token” refers to a unique asset that identifies ownership of a digital asset; “non-fungible” refers to the inability to replace or change the asset.

NFTs are purchased by collectors to display in their personal galleries or to sell on the secondary market for profit. Besides the NFT itself, every transaction associated with that NFT is also recorded on the blockchain, allowing the musician who minted the NFT to earn royalty payments.

Musicians can earn royalties by releasing physical albums together with NFT-linked vinyl records. Additionally, they can introduce IRL perks to their tokens to engage their fans.

The music NFTs are typically accompanied by an animated or static image and a play/pause button so you can listen to the music. The length of some music NFTs ranges from entire albums to short sound clips. 

How can you profit from music NFTs?

Music NFTs allow creators to earn money via royalties on minted NFTs or through buying and selling music NFTs.

The creator opens an account on a marketplace and then creates the digital file to be tokenized. By minting NFTs, creators earn royalties via smart contracts. Code is used to identify ownership, allow for transferability when the NFT is sold, and ensure that the NFT cannot be duplicated. This will ensure that its initial creator can continue to earn from future sales. 

Whenever an NFT is sold, the creator receives a percentage of the sale price – usually between 1% and 10%. Also, NFT transactions are subject to a fee, called a gas fee, that’s much like the processing fees on credit cards. 

There is no guarantee that your NFTs will sell. Its value depends on the author’s ethos, its use, and even its rarity.

Here are some steps you should follow when if you want to create and sell music NFTs

  1. Choose the music file or album art you wish to mint. NFTs for music are usually album art, sound clips, or some combination of both – such as audiovisual NFTs. The majority of marketplaces accept the MP3, MP4, and WAV file formats if you are creating audio. If your file is larger than 100mg you may have to compress it. 
  2. Provide your NFT’s details. Marketplaces usually provide buttons and guidance to mint an NFT, including fields for a title, description, tags, and genre. You can also link to social media. 
  3. Finish the minting process. You will have to pay a gas fee to digitize your NFT. The gas fees cover the energy costs of validating the transaction.
  4. Select a method for sales. Put your newly minted NFT up for sale. You can list it for a fixed price or set it up for auction. OpenSea and a few other marketplaces allow private sales. In order to maximize your profits, choosing the right marketplace may be the most important decision you will have to make. 

Buying music NFTs can also generate income in the long run 

Buying low and selling high is the golden rule of investing in NFTs, just like with any other type of asset. However, investing in NFTs doesn’t guarantee profits, and you could earn nothing at all, just like with other assets. 

The action has attracted many celebrities as well. According to Decrypt, Snoop Dogg holds around $17 million worth of NFTs in his digital wallet. Unless you are able to find highly valuable NFTs cheap, owning a notable collection can get expensive quickly.

Obviously, tokens created by well-known musicians are likely to be valued higher. The musician or creator who minted the NFT and its historical significance are major factors that contribute to the value of the NFT. 

Shady con by Eminem, Dream Catcher by Steve Aoki, and When you see yourself by Kings of Leon are some of the most valuable NFT music collections that exist on the market today. Dream Catcher is estimated to value at a whopping $4.25 million.