Music industry

How Cryptocurrencies are Changing the Music Industry by DailyCoin

© Reuters. How Cryptocurrencies are Changing the Music Industry

  • Blockchain and digital assets have become an opportunity for new companies to emerge in the music industry.
  • These companies are promoting a profound change in the way artists and fans interact and engage with their work.

Blockchain technology and digital assets serve as an enabler for many things, including putting artists back in control of their creations. American singer-songwriter Curtis James Jackson was one of the first to discover the huge potential of cryptocurrencies as a way to improve their business.

In 2014, the popular rapper, better known as “50 Cent,” accepted payments for his new album “Animal Ambition.” That year, he made $7.7 million in equivalent cryptocurrency sales. It was a risk taken without much analysis⁠ – the artist admits that only his flair for business told him that this was the way to go.

Then came Icelandic singer Björk, who also chose to accept bitcoin payments, in partnership with AudioCoin (ADC) for the release of her album “Utopia” in 2017. Those who purchased her music also received 100 AudioCoins to be used for the purchase of more music. .

Since then, the foray of artists into the crypto industry continues to grow by leaps and bounds around the world. In this way, music creators and bands take control of their own business, limiting the influence of major record labels.

Take back control and increase revenue

The digital asset industry has provided artists with the unique opportunity to have more control over their productions, increasing the autonomy and security of their music. Blockchains are not only secure channels for sharing music, they could even serve to prevent copyright issues.

Since the launch of titanic shared music platforms such as Spotify (NYSE:), artists have been pushed into the background, forced to submit to the disadvantageous rules of global companies in order to be present in their catalogs.

The use of cryptocurrencies and other digital assets in the music industry has changed the way musical artists share their work, while the business relationship between artists and fans is becoming deeper and deeper. direct.

The Chainsmokers is one of the most striking examples of how blockchain technology helps artists connect with their fans without intermediaries, while increasing their profits at the same time.

Earlier this year, the New York pop duo launched 5,000 free NFTs. With these non-fungible tokens, fans got a number of benefits, including discounts on the purchase of Chainsmokers’ latest album, VIP access to purchase tickets to their concerts, and free merchandise.

The ability (OTC:) to invest in favorite bands

The duo aren’t the only band experimenting with digital assets to market their work and associated shows. Royal, a cryptocurrency startup from music DJ, producer, and entrepreneur Justin “3LAU” Blau, is innovating the music industry using blockchain technology.

Royal was founded in 2021 by Blau and his partner JD (NASDAQ:) Ross, another music industry entrepreneur. The platform allows artists to sell royalties from their work to fans as NFT collectibles, though Blau prefers to call them “limited digital assets.”

The company is giving fans greater access to the music they love, but also the ability to invest in and support their favorite bands that was unimaginable just a few years ago. Innovation represents a new source of funding for emerging music groups, and even those that have fallen through.

Blau was a pioneer in launching a blockchain-powered music festival in 2018. At the event, attendees could win collectibles by scanning QR codes. Three years later, he organized an auction of 33 NFTs to commemorate the third anniversary of his album “Ultraviolet”.

In just 24 hours, the NFT auction, featuring songs from the album as well as physical vinyl records and previously unreleased music tracks, raised $11.6 million.

“All the people who had spent money on this stuff believed in the narrative that I had been pushing for many years,” Blau said in an interview recently. He added that he “felt an innate responsibility to see technology evolve into what I wanted.” whatever.” “Since the day (of the launch of Royal), we have never used the word NFT,” Blau pointed out, perhaps because the NFT market had gone through difficult times as many companies were qualified of “fraudulent”.

“There is all this baggage that is carried by this sentence. And in building Royal, the goal has always been to provide access to an asset class: music,” explained the CEO of Royal. Among the list of bands and artists who are already working with Royal are The Chainsmokers, Nas, Big Boi, Diplo and many more.

Fractional ownership of royalties is sold to fans along with other benefits. Among them are experiences with bands or artists, merchandise, access to unreleased songs, and bonus privileges to attend events and access future releases.

The metadata behind these NFTs marketed by artists offers a wealth of information about their work. This data includes: author/composer; the name of the license for advertising purposes; where, how and when the work was recorded; the album or playlist in which the song was published; and more.

Why You Should Care

  • Some believe that the music industry associated with blockchain and cryptocurrencies will launch a new financial wave after the crypto winter.

There are a range of other NFT companies in the music industry working alongside Royal. Some of those working to develop the industry are Opulous, Catalog, and song royalty selling platform RoyaltyExchange.

There are a handful of major labels that aren’t far behind in the Web 3.0 space, with sony (NYSE:) Music, Universal Music Group (AS:) and online music streaming giant Spotify are all making strides to explore the technology.

Nevertheless, currently only companies like Royal – created by artists, for artists – are the ones that are truly pushing for a radical change in the music market with their innovative approach to the industry.

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