In this post we show you the 5 platforms that have adopted blockchain technology and NFTs to change the rules of the game in the music industry. Blockchain and non-fungible tokens are revolutionizing the music industry, allowing artists to verify the copyright of their songs and being able to monetize their music directly.
Platforms such as Audius, Sound and OneOf, among others, use the potential of blockchain to give artists a fairer and more balanced treatment and reward them better for their work. Through NFTs, these platforms also facilitate song ownership. In this way, they offer a solution to one of the most persistent problems in the music industry: piracy.
Although traditional video and streaming platforms such as YouTube and Spotify continue to dominate the market, more and more world-renowned artists are joining the new technologies provided by blockchain. Even these two giants are seeing how to adapt to the new times of Web3.
Platforms using blockchain and NFT in music
Audius, known as the Spotify of the blockchain, is a decentralized streaming platform based on the Solana network. From this platform, any artist can freely post and share their work as NFT tokens. Likewise, you can interact directly with your fans and followers.
This blockchain music streaming platform was born as a space for artists to communicate directly with their fans. While directly monetizing their work, thanks to non-fungible tokens. Therefore, their goal is to give power back to artists and content creators.
3LAU, Rezz and Deadmau5 are some of the most recognized artists that are part of the Audius ecosystem. In March of last year, 3LAU sold over $11 million worth of their “Ultraviolet” vinyl collection as NFTs.
Audius has designed its own token, called AUDIO, to build and sustain a digital economy between users and artists. In this way, the clients of the platform can pay the artists through the native token. The AUDIO Token can be traded on exchange platforms, such as Binance and Crypto.com, to access liquidity.
According to Audius, more than 6 million users meet on this platform every month to enjoy the music of some 200,000 artists. Last August, the blockchain streaming platform partnered with the social network Tik Tok, to allow its users to play the songs of their favorite artists on the popular application.
Sound is another of the streaming platforms that uses the blockchain to empower its artists and consumers. Like Audius, it tries to find a balance in the music industry, so that all artists can benefit equally.
Within this platform, artists can release their songs as exclusive NFTs. For their part, consumers can support their favorite artists for their work. In Sound, song NFT holders can have unique feedback on tracks and creations. In addition, thanks to the immutable and transparent record of the blockchain, it will be easy for users to show how long they are fans of the artists.
Sound song NFTs also serve as a membership pass for the user community on Discord. Where exclusive events, interactions and collaborative projects with artists take place every week.
Unlike the previous one, Sound is not a platform open to everyone. On its website, it states that scalability has been the main limitation. However, he details that he is working to open the door to all artists, composers, producers, curators and music collectors who want to interact in his community.
World-renowned artists like Whitney Houston and Pitbull are part of OneOf. A platform that is barely a year old, but that uses NFTs to connect people, artists and collectors and immortalize the best moments of music and lifestyle on the blockchain.
From this platform, artists can create entire collections of NFTs with their songs, or release exclusive, limited-edition, or single-edition NFTs. According to the platform, the latter are used by artists, mainly, to offer unique experiences to their fans, present unreleased music, sell VIP tickets to concerts, among others. Last November, Whitney Houston submitted a previously unreleased track, which she had created at the age of 17, as an NFT.
This blockchain platform is partnering with the US National Academy of Recording Arts and Sciences. To commemorate the 64th, 65th and 66th Grammy Awards ceremonies with a collection of exclusive NFTs.
Founded by 3LAU and DJ Ross, Royal is a music platform that uses blockchain and NFTs to allow artists and collectors to list their songs for sale and receive profits. Through royalties for streaming services.
On its website, the platform explains that the artists and fans on Royal co-own the music together. So both can choose what percentage of royalties to receive with the sale of the songs. Royal points out that, in this way, both benefit from the success of the songs, according to their popularity and reproduction. In addition to streaming royalties, collectors also receive a license for non-commercial use of the digital art associated with the music NFT token; as well as other benefits that artists wish to include.
From Royal, artists and creators can sell ownership of their songs and creations and give consumers and collectors access to special experiences and benefits. Additionally, NFT song collectors can list their assets on secondary market platforms without losing their royalty rights.
Like Sound, artists and creators who want to be part of this community must apply to the platform and wait for approval. However, one of the advantages that Royal offers is that it allows its users to use both cryptos, from wallets such as MetaMask, and fiat money, through credit cards.
Vetz is introduced with the first blockchain-based music rights marketplace. The platform uses the Initial Song Offering or ISO, for its acronym in English, so that artists can negotiate their rights as authors and share part of them with their fans. The Initial Song Offering includes a particular date and time when song royalty rights will be made available to the public, the platform notes.
Therefore, this music rights market functions as a music investment platform. Vetz uses a proprietary blockchain to keep track of artist royalties.
In a blog post, the developers at Vetz indicated that ISOs have an edge over NFTs when it comes to song royalties. Steve Stewart, founder of the platform, pointed out that the royalties for the reproduction, use and license of songs worldwide are distributed equally among those who participated in the ISO.
Blockchain and NFT transform the music industry
With the rise of digital assets in the last year, NFTs have become quite an attractive business option. So the goal of these blockchain platforms is to return financial power and control to artists and creators.
According to music industry law firm Sympathy for the Lawyer, technological advances such as blockchain and NFTs have created a new business trend in the music industry. These technologies, he indicates, are incorporating the concept of “exclusivity” in the industry, which is opening new business avenues for artists, musicians, creators, record labels or promoters.