What is NFT Music?
NFT music refers to any music track, album or music video that is minted and sold as an NFT on the blockchain.
Key Takeaways:
- Music NFTs are blockchain-based certificates that prove ownership of music content
- Artists can sell songs, albums, and videos directly to fans while earning ongoing royalties
- The global music NFT market is growing rapidly with projections of $6B by 2028
- Multiple marketplace platforms exist for buying and selling music NFTs
NFTs in the Music Industry
NFT music offers a fresh and innovative way to create, trade, and experience music. Music NFTs can represent individual tracks, albums, videos, or even serve as exclusive rewards, merchandise, or event tickets.
For artists, music NFTs provide a new revenue stream. By tokenizing their creations, musicians ensure that their work is securely stored on the blockchain, preventing tampering and ensuring fair royalties. Each time a music NFT is sold, the artist receives rightful compensation without intermediaries, revolutionizing how they profit from their art. Fans, in turn, gain the opportunity to support their favorite artists while potentially benefiting financially by owning unique and valuable digital assets.
The market potential for music NFTs is immense. Projections suggest rapid growth in the coming years. One report estimates a $398.1 million valuation by 2030, with a compound annual growth rate (CAGR) of 19.9% from 2024 to 2030. These figures reflect the growing interest and opportunities within this space.
What are the advantages of NFT music?
NFT music is typically issued directly by the artist, and has a number of advantages:
- Royalties. By issuing their music as an NFT, artists can gain perpetual royalties from secondary market sales of that music. This allows the artist to earn a small kickback from fans of their work who wish to get their hands on these music NFTs – which they may deem as fairer than standard industry royalties.
- Funding. Smaller artists may struggle with the raising the funds for the studio time and production costs to release their music professionally. By creating a NFT collection for their music, fans can directly assist artists with these costs, and help more music to be produced and released.
- Speculation. NFT music released by known artists typically commands a higher value, and can lead to speculation of the utility and opportunities that will be given to holders.
Popular artists that have released NFT music include Rihanna – who sold a collective 1% of the royalties to hit song “Bitch Better Have My Money” as NFTs in 2023, BABYMETAL – who have sold limited-edition packages of physical vinyls and NFT collectibles on multiple occasions, and Kings of Leon – who released their 2021 album “When You See Yourself” as an NFT in 2021.
What type of music NFTs exist?
In the music industry, Non-Fungible Tokens (NFTs) come in various forms, including event passes, exclusive merchandise, collectibles, and even ownership rights to musical creations.
- NFT Tickets – bring a new level of security and value to event entry. Unlike traditional tickets that lose their worth after the event, these digital passes can help prevent fraud and retain value post-event, allowing resale at market rates.
- Songs and Albums – musicians are now embracing NFTs to release their work. Entire albums or individual tracks are available as NFTs, giving fans the chance to own unique pieces of their favorite artist’s work.
- Video NFTs – performance and music videos are being turned into NFTs, allowing fans to own a moment in time. These videos can be collected or sold later for a potential profit.
- Music-related Digital Art – from concert posters to album covers and promotional images, digital art plays a significant role in the music industry. Turning these artworks into NFTs allows fans and collectors to own and trade these unique assets.
- Autograph NFTs – fans can now collect digital autographs from their favorite musicians and performers. These digital signatures not only hold sentimental value but also carry potential financial worth, making them a sought-after item in the NFT marketplace.
Leading Platforms for Music NFT
Artists can develop, mint, and trade their digital assets on several popular music NFT marketplaces. Here are some top music NFT marketplaces:
OpenSea
OpenSea is one of the best NFT marketplaces that offers music NFT creation with up to 5 mints per token. It stands out for supporting over 150 cryptocurrencies including major ones like Ethereum, Solana, USDC, and DAI, making it highly accessible for transactions.
Rarible
A multi-chain platform supporting Ethereum, Flow, Tezos, and Polygon networks. They offer free minting and allow artists to earn up to 10% in royalty fees from sales, creating an attractive ecosystem for musicians.
Royal
Specializes in music royalty NFTs, enabling fans to own shares in their favorite songs. Artists can bundle exclusive content, experiences, and artwork, with flexible payment options including both crypto and traditional payment cards.
Audius
Audius is a blockchain-based music platform running on Ethereum and Solana since 2019. It uses AUDIO tokens for governance and has integrated with TikTok. With 7.5M+ monthly users by 2023, it offers free hosting and unique staking-based revenue model.
OneOf
Built on Tezos blockchain since 2021, focusing on eco-friendly “green NFTs.” Partners with the Grammys and Warner Music Group, it accepts credit cards and has hosted major artists like Doja Cat.
Conclusion for NFT Music
Music NFTs are changing how musicians connect with their audience, offering new opportunities to share and profit from their work. These digital assets allow artists to distribute tracks, videos, and artwork directly to fans while earning fair royalties, ensuring a more independent and equitable approach to revenue. Fans can own unique pieces of music, supporting their favorite creators in ways that traditional methods often cannot match.
In 2023, the global music market generated $28.6 billion, but the majority of these earnings were concentrated among large publishers and streaming services. This has led artists to seek alternative methods, with NFTs emerging as a powerful option for greater creative and financial control.
Music NFTs, including digital tickets, exclusive merchandise, and collectable autographs, provide both creators and fans with exciting possibilities. As this trend grows, it offers a promising future for the music industry, empowering artists while giving fans a closer connection to their favorite music.
FAQ – Frequently Asked Questions
What does NFT mean in music?
An NFT in music is a digital asset that represents ownership of a song, album, music video, or other music-related content, stored securely on the blockchain.
What is NFT audio?
NFT audio refers to music tracks or sound files minted as NFTs, allowing fans to buy, sell, and own unique audio content directly from artists.
How can I create a music NFT?
To create a music NFT, choose a blockchain like Ethereum, use a platform such as OpenSea or Audius, upload your music, mint the NFT, and list it for sale.
What platforms can I use to buy or sell music NFTs?
Popular platforms for music NFTs include OpenSea, Rarible, Royal, Audius, and OneOf.
What are some examples of music NFT release types?
Music NFTs can include songs, albums, concert tickets, digital art, music videos, or even autographs.