The music business is one of the oldest entertainment industries. It has undergone several technological advancements, the most recent being the digitization of music. This has helped artists reach any audience around the world. Digital distribution has given talented people unlimited access to their music.
Advances in music distribution have come with some drawbacks. Drawbacks affect music monetization. Profits made from digital formats of music are decreasing gradually. Artists are forced to generate revenue from offline ventures such as concerts and merchandise sales. According to Takayuki Suzuki, CEO at MetaTokyo, a Web3 Entertainment Studio,
“Web3 and existing platforms help us build a new chapter of the music industry…It was hard to find good music for me, checking many record stores in Tokyo and sometimes overseas. Now it’s very accessible via streaming.”
The latest paradigm of Web3 tools allows developers to turn existing audiences into communities. The relationship with fans has become critical. The platform makes fans closer to a Web3 artist.
Disrupting the Music Industry Once Again
Limewire is a music NFT marketplace that was initially a music-based peer-to-peer free software file-sharing platform. Its CEO, Marcus Feistl, told Cointelegraph,
“The music and creator industry is certainly on the verge of a step change, moving from a Web2 model focused on content consumption to a Web3 model focused on content ownership. Artists are just beginning to find their way to utilize Web3 best to interact with their audience.”
The critical use of NFTs is the ability to form communities around token holders. The rise of decentralized, autonomous organizations has led to attempts to coordinate communities digitally. This opens up potential opportunities for independent artists ready to innovate in the next iteration of the music space.
The music industry is always attempting new ideas. Mattias Tengblad told Cointelegraph,
“These adoptions often start slowly but eventually become mainstream.”
The Web3 platform is still in its early stages. Most users are crypto-savvy;
they have a basic technical understanding of on-chain interactions. As the space evolves, the Web3 music platform could become essential in how labels and artists do business.
Prospects from this technology promote connections between like-minded individuals. It breaks down all previous barriers to community formation. According to Suzuki,
“It’s been difficult to maintain great relationships in this industry.”
These innovations are not just for established music industry companies. Young talent familiar with Web3 can open the door to new forms of expression and monetization. Facilitate relationships between artists, intermediaries, and fans to transform into communities.
Creativity in music offers an opportunity for artists to test new technologies. Some may become the following established artists of the next generation. This can reduce the importance of record companies in an artist’s success. Many record companies are involved by moving part of their operations to chains and releasing NFT collections.
The success of music NFT drops shows how Web3 can disrupt funding models by giving artists direct access to fans for cash. Artists who try to connect with their community and directly with their fan base will benefit most from Web3.