Musicians are using NFTs as a New Revenue Stream

Antoine Maurice King, MBA, MSIT

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e.g. Bored Ape Yacht Club

The music industry took a big hit when streaming became popular because the profit margin for selling CDs was much higher. Many thought that the music industry was dead until streaming started picking up and record industry execs signed 360 deals. In 2021 total album sales grew 11% while streaming increased 10%, not so shabby after all. The music industry is losing its fear of the digital world. Enter NFTs, a BlockChain technology that will add Revenue to the music industry.

How do NFTs Work?

NFTs reside on the BlockChain, a secure way to transfer data, and that has been a game-changer for the art world and the music industry. An NFT can be anything you can make into a file, like JPEG, GIF, MP3 MP4, etc... These files are then secured on the Blockchain using an autogenerated secure hash. The hash can identify when two files are the same. I don't want to go deep into Blockchain technology, but this makes your file unique, like a fingerprint. Owners can prove these files to be unique and authentic. They can now sell them as one-of-a-kind items. Blockchain technology can track the owners of the NFTs and leave a trail of authenticity that anyone can view. That gives artists a secure and authentic way to sell art. A great example of this is The Bored Ape Yacht Club.

How are Musicians using NFT's for added Revenue?

NFT's are changing the music industry as well. A handful of music artists are taking advantage of the new technology and adding a new revenue stream. Artists like Nas, Rolling Stones, Dave East, Donald Wayne King, and Grimes, to name a few, are cashing in on the latest trend. NFTs can transform the music industry, and there are many different ways artists can utilize the technology. Nas uses his NFT collection to give fans a piece of his music royalties. Some artists are even offering a Fanclub membership when you buy their NFT. The owners of the NFT have perks like backstage access to events. What artists can do with NFTs is only limited to their imagination.

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Antoine Maurice King, AABA, BSIT, MBA, MSIT Founder of Spate Media writer and blogger for www.spatehiphopnews.com. I love to write about music and entertainment, and local entertainment is something I find very interesting. I want to let you know about the best events, places to eat, and more in your area—over 15 years of experience working in media and technology.

Bronx, NY
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