When people think of nonfungible tokens (NFT), the most popular collectibles such as CryptoPunks, Bored Ape Yacht Club and Decentraland usually come to mind. Beeple’s digital artwork that sold for millions will most likely ring a bell, and most recently, gaming came together with the Metaverse to usher in an altcoin season.
However, one particular type of nonfungible token that rarely gets looked at is music NFTs. With NFT sales raking in billions of dollars across other categories in 2021, music NFTs seem to have lagged behind.
According to Cointelegraph Research’s recent report, the global awareness of NFTs has increased over time. This is evidenced by the fact that the term “NFT” continues to trend upward in the volume of Google searches.
However, two surveys explored in the report reveal that many are still in the dark when it comes to these tokens. What’s more, many of those who had previously transacted with cryptocurrencies had no prior experience with NFTs. In one of those surveys, 57% of the respondents stated they had not used NFTs before, while only 3% used NFTs daily. Such data illustrates the market’s nascency.
Music NFTs vs. streaming services
Like NFT artworks, music NFTs have been touted as a revolutionary way for artists to connect with their fans and monetize their work. They embrace the concept of ownership, which has proven to be essential in building a loyal fan base. Tokenizing an artist’s work also makes it tradable, providing another way for them, along with their fans, to make money. Kings of Leon was the first band to release an NFT album, which generated about $2 million in revenue, marking one of the more successful music NFT projects.
Music NFTs also provide a much more cost-effective alternative for artists. For instance, music NFTs allow fans direct access to the artist’s music without needing streaming giants and record labels, which are known to take substantial revenue cuts. However, for most music lovers, particularly those not in the cryptocurrency space, the $9.99…