Although established artists may enter the world of NFTs with more ease than many, you can’t ignore the potential for creative independence that these marketplaces offer.

Are NFT sales the revenue drip that the music industry craves post Lockdown? So far millions have been made through the sales of Non-fungible tokens from high-profile musicians such as Kings of Leon, Steve Aoki, and Grimes. Yet, despite increasing conversation surrounding NFTs, a wide majority still aren’t entirely sure about how such transactions work, and the part they could possibly play in reshaping the future of the music industry and the nature of its market.

Unlike well-known cryptocurrencies such as Bitcoin, NFTs are considered ‘non-fungible’ giving them a uniqueness that appeals to collectors, investors, and fans craving more from their favourite artists. NFTs provide ownership for digital content ranging from art and graphics to musical compositions. Such transactions are monitored by blockchain technology that records information, acting as a ledger and making it highly difficult for hackers to cause corruption. NFT marketplaces provide buyers with the opportunity to purchase one-of-a-kind codes associated with the ownership of both tangible and intangible goods- such as songs or even merchandise, allowing musicians to increase revenue whilst retaining copyrights.

Due to the pandemic, many musicians sought out additional revenue streams, as they were prevented from performing live and therefore stripped of a major source of income. NFT marketplaces provide artists with a platform to raise funds by offering fans unique experiences, whether that be graphic visuals to complement musical compositions or backstage footage only accessible through the purchase of NFTs. Kings of Leon became the first band to release an album in this format, through their newest release of When You See Yourself. It’s easy to question the purchase of such NFTs, with the album being accessible on online streaming platforms such as Spotify and Apple Music- but the purchase of the album in an NFT format offered fans perks such as a limited-edition vinyl and access to exclusive online artwork. Selling their recent album as an NFT allowed KOL to curate an intangible good of rare status as such tokens cannot be reproduced only traded. But is it Kings of Leon’s over 12 million monthly listeners on Spotify that makes such experimental changes to one’s business model an easy risk to take?

Emerging artists, attempting to grow demand for their music, alongside industry recognition, may struggle to find success in such a marketplace. Demand for NFTs stems from a desire for rarity and uniqueness, something that smaller artists ironically already hold, due to their unfamiliarity with the majority. Therefore, the excitement of finding a hidden gem in the depths of Spotify may be thrilling enough for a listener not to require the purchase of its unique token in the form of an NFT. However, as fans constantly crave more intimacy with their favourite musicians there’s no surprise big named artists would want to use such online marketplaces to offer a more personal experience to their audience due to the detachment musicians face as a consequence of growing popularity.

Although established artists may enter the world of NFTs with more ease than many, you can’t ignore the potential for creative independence such marketplaces offer for smaller artists. By removing the middleman from the equation, NFTs provide musicians the opportunity to earn money without the need for shareholder intervention, allowing them to choose how they want to monetize their music. All it could take for a musician to receive both financial comfort and publicity is one super fan of a wealthy status to make a huge bid. There’s no doubt such marketplaces could be the tip jar for many or a source of income for others.

With online streaming sites offering access to millions of songs without any expense, the concept of placing numeric value onto musical compositions may seem unfamiliar to Gen Z. Yet, for many belonging to older generations, this had always been the case through CD, tape, and vinyl sales. However, unlike today’s NFT consumers, Beatles fans of the 60s most likely purchased vinyl as a form of musical appreciation rather than for investing purposes. The reality is many cryptocurrency owners aim to trade their digital goods for larger sums than they originally paid- labelling many musicians’ NFTs assets rather than art. Music has always been numerically valued alongside its artistic value, but there’s a clear danger that NFTs could blur the lines between the two.

The music market has always remained accessible to many, but the introduction of NTFs to the industry could create an artificial sense of scarcity. A song featured on your favourites playlist on Spotify sounds the same as its NFT audio file - but buyers receive a unique code and arguably a sense of status. Could the ability to purchase ‘bragging rights’, provoke a lack of genuine musical appreciation?

It’s still early days for NFTs and music, but we will most likely see more big names jump onboard. Artists have never felt more pressure to maintain an online presence and NFT marketplaces could give them the outlet to do so. We’ve seen the evolution of the music industry in the decline of physical media sales followed by the rapid growth of streaming services. Is it now time for another gradual directional change into the world of NFTs?

It’s clear NFTs will provoke a consequential change to the music industry and transform the way listeners value music. But will this change damage our perception of music from art to assets? There are only whispers surrounding NFTs now, but this conversation is only going to get louder and louder.

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