By establishing decentralized relationships between artists and their fans, NFTs eliminate most of the intermediaries between music creators and consumers. Artists regain control over the content they produce and interact directly with their communities to engage them more strongly. Fans, on the other hand, are finally involved in the success of their favorite musicians. Explanations with professionals in this industry.
NFTs create a direct link between fans and artists
Following the restrictions caused by the Covid-19 pandemic, the musicians took advantage of their free time to study the potential of non-fungible tokens (NFTs) and offer new experiences to their communities. What followed was a boom period marked by intense speculation, with sales lining up the zeros making mainstream media headlines.
Today, while the bear market is in full swing, it is clear that NFTs have left the spotlight, but they have not disappeared. On the contrary, this nascent market is taking advantage of the general apathy to structure itselfidentify the uses that work and the best ways to benefit music fans.
Before the arrival of NFTs, artists had to settle for centralized tools to communicate with their fans. This was mainly happening on social networks and streaming platforms that offer little freedom to artists, as Kevin Primicerio, CEO and co-founder of music NFTs marketplace Pianity explains:
“Digital technology creates barriers between musicians and their fans. On Spotify, artists have no way to interact with their listeners. On Instagram, it becomes complicated to share external links. There are more and more constraints and the conversion rates are bad. On this point, NFTs offer solutions. One of the big advantages is that you know exactly who bought your music, which makes it possible to imagine new types of interactions. At Pianity, for example, we use this information to open discussion groups between artists and the holders of their NFTs, in order to bring them closer. »
Beyond creating a direct link between musicians and their fans, NFTs are a great way for an emerging artist to gain exposure and build a community. They allow them to promote their music, but also their personality, their universe, and this at a lower cost. It is also a way for musicians to retrieve data about their fansto stay in direct contact with them without having to ask them for their e-mail address.
👉 To approach NFTs on a good basis: NFT: our explanations to understand everything in a few minutes
Buy NFTs on Binance
Discover Binance’s NFT Marketplace 🔥
NFTs empower music fans
In the music world, NFTs are revolutionizing fan engagement. Until then, musicians offered content and fans had only a passive role as consumers, with the only possible interactions being likes and shares on social networks or streaming platforms.
NFTs come rebalance the balance of power between musicians and their communities. Their relationship is no longer one-sided. Unlike the consumption of music on centralized platforms, the fact of buying an artist’s musical NFT makes it possible to contribute directly to their remuneration. Conversely, in the event of a misstep, a community could turn away from an artist overnight, which would have direct consequences on their career.
It doesn’t stop there, as NFTs hold unlimited potential in terms of listener engagement. They make it possible to create kinds of super fan-clubs with specific advantages granted to the holdersas Flavien Defraire, creator of the music and Web3 blog Le Son Dopamine and community manager of the Blockchain Game Alliance points out:
“The real revolution at the moment is the notion of “tokengate”, when an NFT offers access to exclusive experiences and rewards. Whether you’re a star or an unknown artist, this is what will change the game in terms of physical experiences, with backstage access for example, but also digitally by creating spaces in the metaverse reserved for holders of NFTs. »
👉 Read: Why do brands have so much to gain from taking an interest in non-fungible tokens (NFTs)?
Progress in the world of cryptocurrencies with Cryptoast experts 📘
Offer exclusive experiences to NFT holders
On the label side, NFTs are also the subject of numerous experiments. After being taken aback by the arrival of peer-to-peer downloads and streaming, there is no question of missing out on the Web3 revolution.
After all, NFTs can help them in so many ways. Currently, this already allows them to identify more qualified, more committed audiences, “super fans” in a way. It’s also a great way to connect with the most active listeners and reward those who get involved in the careers of their favorite artists.
Perrine Guyomard, Business Development & Innovation Manager at Warner Music France, is convinced of the potential of musical NFTs to engage fans more strongly:
“The holders of an artist’s NFTs could, for example, become moderators of his Discord server, listen to his next project in preview, give their opinion on his future collaborations or play as extras in a music video. It’s a bit like working with fan clubs, but adding that direct link to the artist that NFTs provide. However, the role of the artist is not just to please the fans, he must find the ideal balance so that his artistic approach remains authentic. »
👉 To go further: How to assess the potential of a collection of NFTs?
Order our Book to understand everything about cryptos
Published by Editions Larousse
The role of labels in the democratization of musical NFTs
If NFTs show great promise for the music industry, they still have many hurdles to overcome to achieve mass adoption.
The most obvious remains the technical brake, with many complex steps to complete before you can afford an NFT. For the moment, creating a wallet to access Web3 or buy cryptocurrencies is not given to everyone. The other barrier which is going to be hard to knock down, it is that of the ignorance of a good part of the population who does not know either what an NFT is, nor the interest that it can have. To move forward, it will be necessary to carry out an enormous work of popularization, education on these subjects.
Labelsand the majors in particular, have an indispensable role to play in the democratization of musical NFTs. They accompany musicians to help them make the best use of Web3 technologies, to hold their hand in this new field of possibilities with immense potential. But above all, they are in the best position to educate the general public on the use of musical NFTs and their potential.as Perrine Guyomard notes:
“Our goal is to limit technological barriers and support fans so that they can immediately understand the value of these NFTs, their usefulness, with healthy prices that are not there to recover as much value as possible, or even free NFTs. »
Expect to see many promising projects based on musical NFTs emerge in 2023, with unique experiences directly involving music fans. Warner Music France has several in the box, and no industry player wants to miss the innovation train.
👉 On the same theme: How to buy an NFT? Complete 2022 guide
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.