What are NFT's, anyhow?
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NFTs (non-fungible tokens) allow digital art, music and other files to be bought and sold on the blockchain, with proof of ownership. Popular artists like Grimes, Kings of Leon and Mike Shinoda from Linkin Park have sold their art and music as NFTs, with Grimes raising $6 million and Shinoda selling a song teaser for $33,000. The music industry sees opportunities for ongoing revenue from reselling collectible digital music and art files, as well as getting paid in cryptocurrency. However, mainstream adoption may depend on educating older generations about cryptocurrency.
What are NFT's, anyhow?
- 1. Q: What are NFT's, anyhow? A: They're an exciting innovation for the Music Industry
- 2. What does NFT stand for?
- 3. NON - FUNGIBLE TOKEN “Non-fungible” means that it’s unique and can’t be replaced with something else. The token refers to a unit of currency on the blockchain. This blockchain is how cryptocurrency is bought and sold. Source: The Verge
- 4. WHAT CAN BE SOLD AS AN NFT? Drawings Music Hey, here's my brain turned into AI file.
- 5. Jack Dorsey (CEO, Twitter) - sold his first ever Tweet as an NFT. Sale price: $2.9million USD
- 6. Great story. But how do NFT's work?
- 7. ETHEREUM BLOCKCHAIN NFTs are part of the Ethereum blockchain. Source: Blockchain Explained The ethereum blockchain works somewhat like a fancy Carfax, in that it supports the transparent record of all prior ownership of a digital file.
- 8. Grimes - Raised $6million selling her art in NFT form. Source: The Verge Kings of Leon - released their album as an NFT. They're the first band to do so. Income unknown. Source: Rolling Stone Mike Shinoda, co-founder of Linkin Park - Auctioned a 30- second teaser of an unreleased song as an NFT for $33,000. Source: Hypebeast
- 9. Why can't I just download the file from the internet?
- 10. YOU COULD, BUT NFT’s give you something that you can't just copy: that is the legally recognized ownership of the work. Let's call it kudos, or clout.
- 11. WHAT DO THE EXPERTS THINK? “"The potential to provide tremendous value to artists." Oana Ruxandra, Warner Music Group chief digital officer and executive vp business development to Billboard Magazine. "NFT ownership is a step forward in collectable items which bring fans closer to their favorite artists.” Celine Joshua, Universal Music Group’s executive vp commercial & artist strategy to Billboard Magazine
- 12. Ok, but what does this really mean for the Music Industry?
- 14. “Even if I upload the full version of the song to DSPs worldwide (which I can still do), I would never get even close to $10k, after fees by DSPs, label, marketing, etc.” - Mike Shinoda, Linkin Park Founder Source: Hypebeast
- 15. OPPORTUNITIES Sell music, concert tickets, poster art as collectible items The resell value and ongoing revenue from resales Get paid in a viable new form of digital currency
- 16. MARKET & TECHNOLOGY "While NFTs are important as a newly developing market, they have similar potential to their gaming and fitness initiatives" - Billboard Magazine “Look at Flow as you would iOS. Ethereum, like Android,” - - Billboard Magazine
- 17. POTENTIAL AUDIENCES Gen Z - raised online - implicitly understands cryptocurrency and NFT's. They already actively purchase digital goods. Eg. In-app purchases on games like Fortnite. Comparatively, cryptocurrency education for older generations is going to be key.
- 18. STILL NOT CONVINCED? When you started using the internet, did you think one of your most-used, favourite tools would be to stream and listen to music online?
- 19. SOURCES NFT's, explained - The Verge Grimes sold $6 million worth of digital art as NFTs. - The Verge What 's an NFT? And why are people paying millions to buy them? - NPR NNFTs Boom as Collectors Shell Out to ‘Own’ Digital Art - Wired.com Mike Shinoda Sees the Future of Creative Ownership in NFTs - Hypebeast Kings of Leon Will Be the First Band to Release an Album as an NFT - Rolling Stone The Major Label NFT Strategy Will Focus on Long-Term Revenue - Billboard