NFT, a market worth more than 3 billion dollars.

3 billion dollars.

That's the NFT market in 2021.

Following the growth of crypto-currencies, NFT have been making a lot of noise in 2021.

This revolution has allowed new artists and big names in the industry to develop a new artistic universe. Deadmau5, 3LAU and Richie Hawtin participate in this movement by creating new art with NFT.

But before going into detail about how NFT are a revolution for music producers you need to understand what is a NFT.

What is a NFT?

NFT means Non-fungible tokens.

Non-fungible tokens are distinguishable precisely by their non-fungibility—that is, their non-interchangeability. They are able to provide a unique representation of a virtual asset and are authentic, unique, and encrypted.

For example, an image in a .jpg file, can be replicated countless times, but the token cannot be, and it is the token itself that gives value to the image, enabling it to bought, sold, and collected like the finest works of art.

Therefore, the purchased token is a certification of the media or digital work, not the work itself. NFTs, consequently, give a digital creation all the rights it would have as a physical work: rarity, authenticity, and ownership.

That's what makes an NFT so extraordinary. Non-fungible tokens are changing the digital world forever. It's a bit like an artist creating a work of art for just one person: many might admire it on the web and appreciate its beauty, but only the person who buys it holds the rights of ownership, including the ability to resell it and make a profit.

This is why there is speculation about certain works and the emergence of new horizons for artists.

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Why are NFTs important for music producers?

In today's music world, it mainly follows the 80/20 law. The record companies take 80% of the revenue and only 20% is distributed to the artists. Whereas with this system 80% of the revenues are distributed to the artists if not more. And only 20% for the distribution platforms.

NFTs will allow you to sell your work directly to your audience without labels and others taking a high percentage of your tracks. This allows producers to earn a better living from their art.

Here is an example:

You are a music producer and you want to sell a song, EP or album.

Limited copies of your album can be sold on a platform like Opensea, creating exclusive content that only the people who bought your album can have and listen to.

If one of these people decides to resell your album on a second market. You will get a commission on each secondary sale of the NFT.

So you will get money on the sale, the royalties and the secondary market. This was impossible until now because the labels controlled these revenues.

Here are some other use cases for NFTs for producers.

- You can allow your fans to invest in your career from the beginning.

If you are an up and coming artist, you can give your fans the opportunity to invest in your future success. They can buy your NFT now in the hope that if you become a known artist, the NFT will have multiplied its value.

It can be compared to a crypto-currency project that issues a token or you can invest in it as soon as it is released.

And finally, you can use NFT to finance your next project. If you want to release an album but you don't know how to finance it, you can raise money by issuing NFTs.

- You can create experiences for your fans.

Many artists create NFTs that include their digital product, plus an exclusive benefit or experience that buyers can redeem in real life.

For example, Richie Hawtin issued NFTs of his Plastikman project basslines on the Open Sea platform to allow the producer to rework them. Or the American producer 3LAU very active in the NFT scene, which offers the possibility to collaborate with him for those who have a particular NFT.

These benefits encourage people to buy and keep their NFTs. They are also passed on to the next buyer when the NFT is resold on the secondary market.

To recap:

To end this article, what you need to understand is that NFTs are a revolution for the music world.

They allow :

- A better remuneration for the artist
- Create new experiences for the fans

The creator of an NFT can prove ownership, earn royalties every time it is sold, or sell it independently on any NFT marketplace platform without involving any third party. It is the creator of the NFT who decides the scarcity of their digital asset. Often creators generate multiple editions of their tokens, each of which is unique. All of this can create passive income streams that last for the life of the artist.