How Is The Music Industry Changing With Web 3.0 and NFT?
In 2022, when Web 3.0, Music NFT, and blockchain technologies become more accessible, the music industry might experience a significant transformation. In the music business, song ownership and fair pay discrepancies have long been prevalent. Many of the greatest painters in history, such as Rembrandt, Vincent Van Gogh, and Paul Gauguin, perished without obtaining adequate compensation for their creations.
In 2022, analysts estimate that record sales will total $25.9 billion, but only 12 percent of that amount will go to artists.
There are pros and cons to modern music. Musicians can now connect with a global audience thanks to Spotify and Apple Music. Spotify pays significantly less than Apple Music, paying only $0.01 per stream to bands. These meager royalties might be more than enough for a few celebs with billions of streams, but they’re not enough for the majority of musicians.
Web 3.0 provides artists with more funding options and audience connections.
Many vinyl enthusiasts contend that the aesthetic quality of vinyl has been sacrificed in favor of streaming’s instant gratification and shuffle and repeat options. In the past, musicians anticipated that listeners would sit on the couch, appreciate the record cover art, and listen to an album straight through. Some traditional music listeners still do it, but they are a minority.
— wheatstones (@wheatstones_) July 1, 2022
How we listen to music has changed significantly, and the financial resources available to musicians have largely remained the same.
As in the past, touring is the majority of musicians’ main source of revenue nowadays. Traveling was and still is a drag. Most of the time, partygoers and concertgoers only get to see the most heartfelt parts of an artist’s tour (the concerts). The vast majority of music tours are a never-ending roller coaster of anxiety:
- setting up logistics
- speaking with venues
- eating budget fare (and sleeping on buses)
- spending time away from friends and relatives
Despite the numerous difficulties, travel was a reliable source of revenue. Everything changes when Covid-19 joins the scene. Even if the pandemic’s grip on the live music industry is beginning to lessen, if concerts ever return to their pre-pandemic status quo, it will take some time.
Currently, musicians face difficult circumstances in history. However, there is a benefit in the form of web 3.0.
Web 3.0 empowers artists
It is difficult to define web 3.0 because it is similar to how we define social media. It’s a wide term that covers both a specific technological advancement and a phenomenon in a society that is drastically changing. Decentralization and transparency are the two pillars upon which web 3.0 is constructed, as opposed to the top-down, hierarchical techniques of control that have dominated the internet since its inception in the early 1990s. This definition is a nice place to start, though.
The blockchain, which is essentially an immutable digital record, is at the core of Web3, which also includes other non-fungible tokens (NFT), the metaverse, and other modern technologies.
Web3 has already changed the music industry. Consider the metaverse, for instance. Numerous businesses have offered their interpretations of the “metaverse,” a term that has been tossed about. However, the metaverse has unquestionably expanded the creative possibilities and audience engagement strategies available to artists.
What does Bonnaroo cost? Music in the metaverse is about accessibility. You might spend $1,000 to $2,000 on a shoestring budget. That’s a significant sum of money, and now you may attend a music festival. However, anyone with a [VR] headset can access a new entertainment realm in the metaverse.
However, touring may be simpler for artists in the metaverse compared to the actual world. It uses up a lot of one’s energy. From the perspective of an artist, it’s intriguing. This is particularly true for musicians whose entire careers have been spent traveling; they’ve gone out, made a living by performing at concerts or other events, and may have reached the point when their bodies have had enough.
Also, read – Everything you need to know about: Utility NFTs
Opportunity and difficulty lie ahead.
NFT, or the “currency of web 3.0,” is what Blockparty CEO Vlad Ginzburg refers to as the mainstream use-case for cryptocurrencies. To ensure that collectors can access the mint they purchase, artists can control the contracting and minting processes. Lively, a pandemic-era website that connects musicians and producers with fans, and Blockparty have officially announced a partnership.
Being an artist right now is fantastic. When the music industry appeared to be dead, NFTs began to appear as a powerful tool that might aid artists in regaining control over their careers and reviving a thriving connection with their audience, which may have given people pause about the idea of music in the natural environment. The music on web3 was still just getting started.
For prospective web 3.0 musicians, a significant hurdle continues to be a lack of formal education. As a result, NFTs are more accessible than most people think because they use decentralized databases to offer 100% unquestionable proof of ownership.
NFT drops should always be customized for the audience and goals of the developer. “We want artists to distill their creativity and its impact on their communities, then consider how they may give their audience more agency and what they might hope this NFT will inspire them to do. Making a new contribution to the web 3.0 ecosystem is a value addition. Similar possibilities can be found in the metaverse, where organizations like Soundscape VR collaborate with artists to create virtual experiences that are tailored to each artist’s fan base and aesthetic.
Impressively, the new web 3.0 music scene has emerged swiftly. Web 3.0 was unheard of a few years ago. It is now a widely used financial and promotional tactic that, like social media, might significantly impact a musician’s career. Much experimentation is yet to be done, and more money is to be made by artists and their web 3.0 professional advisors.