Music industry

Explain NFTs and how they benefit the music industry

A popular Canadian rock band is releasing their next album direct to their fans as NFT, or ‘non-fungible token,’ a new digital product that is growing in popularity and creating a product that has given some music and music creators art more control over their work.

In an age when musical artists face limitations on live performance and engagement with fans, NFTs are expected to bring greater participation to the music industry with an opportunity for greater profit for individuals. bands like Our Lady Peace and their fans.

The group’s fourth major album, Spiritual Machines, released in 2000, featured several technological predictions from inventor and futurist Ray Kurzweil. His voice has been featured on the tracks, making predictions about computers with human ability and consciousness, pointing to some advancements that have materialized over the past 20 years.

Kurzweil will appear again on the group’s latest project, due out later this month. The album was recently promoted during an invite-only pop-up show in Syracuse, which included something more than just a show for viewers, using technology that even Kurzweil couldn’t foresee 20 years ago. .

Fans received NFTs from the group, unique, non-reproducible artwork, and a remixed song performed by the group’s lead singer, who said it was something they could potentially enjoy in the years to come.

What would you like to know

  • NFTs are a new form of blockchain-controlled digital content sharing
  • NFTs take the form of GIFs or other digital works of art
  • Canadian rock band pushes NFTs further to share music directly with fans and collect royalties without middlemen

“I was literally driving here, creating things on my iPhone to give to fans,” lead singer Raine Maida said.

The NFTs were sent to viewers for free through an app Maida is involved with called DRROPS.

“This edition of Syracuse drop that happened on our app is just for Syracuse. So it will be a collector’s item in itself. In two years, there are maybe only about 500 that people have, they can trade them in or sell them back and earn some money, ”Maida said.

However, the group is now going further, adding music to the art, in effect releasing the album Spiritual Machines 2 as NFT on S! NG, a marketplace for music NFTs. It will include the album and the extras, various digital bundles – some with video – which will be released in extremely limited quantities.

“There is nothing like it on the market. It’s really cool. It’s remixes, it’s demos. We would never give this stuff away before, and now we are, ”said Maida.

This new digital platform can do a lot for the creators themselves, too, no matter if they’re as popular as Our Lady Peace, or if they’re just starting this journey to get there.

Currently, online music streaming services are the destination of choice for listeners, with smooth and easy-to-use applications such as Spotify and Apple Music accounting for a significant percentage of the global market share.

Despite this ever-increasing ease with which people can listen to music, according to a Citigroup study, artists receive only 12% of the money made by the entire music industry. This is where NFTs make all the difference.

“The best thing about the DRROPS app and NFTs in general is that we go directly to the fans. You’re removing all of those middle layers, which has always been a barrier for creators, whether it’s distribution, monetization, and also community building, ”Maida said.

NFTs, which have a unique digital ID code, are a breakthrough for creatives looking to grow online because they ensure that true ownership of content remains with the creator regardless of digital replication. It also allows fans and members of the community to interact directly with the artists’ music and pay royalties directly to those who produce the content whenever the NFT collectible is resold.

As a higher percentage of revenue goes to content creators, they too have an incentive to create better quality works, thereby increasing the overall quality of music and democratizing the entire music industry.

Information from the Associated Press was used in this report.