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HomeNFT NewsRecord music streaming profits highlight how NFTs will empower content creators

Record music streaming profits highlight how NFTs will empower content creators

The music sector hit record revenues at $25.9 billion in 2021, which amounts to an 18.5% growth from 2020, according to IFPI’s “Global Music Report.” Of these nearly $26 billion, streaming drove the bulk of the growth, with a 24.3% increase relative to 2020. These trends are great news for emerging NFT musicians and highlight the need for audio and video content.

Even though streaming has changed from central platforms like Spotify to decentralized NFT marketplaces, streaming will remain . The rise in streaming is part of a broader transformation in media and entertainment towards digital content — print media is quickly fading. With profound consequences for the sector, digital media replaced print media many years ago. Economists find that national digital media is partly linked to the decline of local newspapers. This partially explains why there has been a greater focus on national issues and more politicization.

But, we have the opportunity to do things differently in the emerging Web3 era. Individual musicians are now creating their own NFTs, marketing them and keeping the majority of the revenue instead of transferring them to record labels and other intermediaries.

Related: Web3: Onboarding the next billion users — The road ahead

Building community

Many commentators have already pointed out that community-building is important for successful NFT projects. NFT artists must rely on their networks and personal connections to spread the word without a central platform. This requires different skills than music production. You need to have financial savvy and soft skills to be able to decide when you should say yes or no to an opportunity.

However, such skills are not taught in traditional music programs. They instead focus on vocal technique and music history. These skills are valuable to different degrees, but they do not suffice for a successful career in music. Record labels and central entities are essential because they help musicians fill a gap that is not their fault.

But community-building is more than a way to sell NFTs. It’s a dynamic and interactive process that feeds into the artist’s underlying artistic work. The usual centralized model of media and entertainment requires musicians not only to give up the majority of their potential revenue, but also their rights, and governance. They can’t even decide how to govern their music without approval from the controlling entity.

While some may be fine with this, most artists hate giving up creative autonomy and control, especially when they don’t get well compensated for it. Wages for performing artists are projected to experience limited growth over the next several years, suggesting that little is going to change unless we shift from the current trajectory.

Related: The Metaverse will change the live music experience, but will it be decentralized?

Music was never designed for centralization. Artists create experiences that others can enjoy together. Record companies may talk about creating community but the evidence is in the pudding. Many musicians struggle and it’s not because they lack talent. Rather, it’s due to a lack financial and business knowledge that leads them to sign contracts with labels that don’t serve their interests. We are seeing the emergence of decentralized options. Recently, MuseDAO was announced. This organization aims to bring together classical musicians and organize local get-togethers with the aim of growing and enjoying culture.

Immersive digital experiences

Prior coverage from Cointelegraph has already highlighted the financial benefits that music NFTs offer artists through the initial sale. We don’t need to look too far to see the windfall that talented musicians have brought home, most notably Justin Blau, known under his performing name 3LAU, as one of the early movers through his Ultraviolet NFT drop last year.

Related: Journeys in Blockchain: 3LAU, DJ and Producer

However, what the latest numbers on streaming highlight is that there is a growing audience for music NFTs beyond just streaming — if that was all that there was, then we would expect to see steady, not exponential, growth. We saw continued momentum as consumers seek audio and video content to enrich their lives and replace traditional print media.

NFTs could unlock a new market in creative economy. Artists and content creators are people who create experiences for others. NFTs can be used to authenticate and transmit unique artistic content.

While there has been some talk of buying music-related NFTs in the Metaverse — most notably for fashion — imagine if creators came together in the Metaverse to create immersive digital experiences that combine audio, visual, and potentially other forms of content simultaneously. There are many creative possibilities. NFTs can be used for more than leisure activities. They can also be used to support educational and training needs.

Although there are now several examples, Arizona State University, in partnership with Dreamscape Immersive, launched the Dreamscape Learn project in 2020. As Michael Crow, President of Arizona State University, said:

“We’ve always known there is huge potential to unlock new learning realms for students by merging VR — and all that it empowers educationally and socially — with advanced, adaptive educational experiences.”

The latest streaming revenues and expansion of the music sector is great news for content creators across the board. Data shows that there is more demand than supply. NFTs, Web3 tools, and other tools, are poised for content creators to take advantage of these trends to make their businesses more sustainable and to create more immersive experiences in the Metaverse.

This article does not contain investment advice or recommendations. Each investment and trade involves risk. Readers should do their own research before making any decisions.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Christos A. Makridis is a research affiliate at Stanford University and Columbia Business School, and the chief technology officer and co-founder of Living Opera, a multimedia art-tech Web3 startup. He has a doctorate in engineering and management science from Stanford University.

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Henry Hicks
Henry Hickshttps://nonfungibletalk.com
NFT and Crypto Enthusiast. Loves Travelling and Exploring the Metaverse!
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