I’m sure by now you’ve already heard about NFTs, NCTs, and this new blockchain craze going in the art and music world; in fact, here at BTCPro we already have a couple of articles written: an introductory piece and one on hashmasks. But rather than talk about the consumer side of things, I want to take the time and talk about the artist’s side of NFT because I find that angle to be the most interesting.
After all, it’s their work that’s affected and NFTs have the potential to change the music landscape for the future.
Methods to directly supporting artists financially have grown exponentially over the past couple of decades from online streaming to pay-what-you-want via websites like Bandcamp to websites like Patreon. Several big-name artists have profited greatly from using NFTs: Daft Punk issued several NFTs on Rarible prior to breaking up, Mike Shinoda from Linkin Park sold a digital art piece for $30,000, and art-pop singer Grimes sold 10 art pieces with one almost reaching $400,000.
Dropping NFTs tomorrow at 2pm EST. enter the void pic.twitter.com/l9fNFUCheX
— ☘︎𝔊𝔯𝔦𝔪𝔢𝔰 (@Grimezsz) February 28, 2021
RFTs can also be designed to pay the original artist a royalty if the original work is resold as is the case with UK graphic designed Brendan Dawes who gets a 10% royalty fee whenever his work is resold.
Making the Case
NFTs are all well and good but this begs the question as to why the consumer would want to purchase an NFT and “own” a piece of digital art. Early investors could be early participants in something new in the world of blockchain technology, as well as solve the messy issue of digital art ownership, and allow more access to people interested in investing in art.
YouTube music critic The Needle Drop talked about NFTs on his channel and points the benefits for artists stating “there are a lot of young up-and-coming artists out there that might not necessarily have the means to go blow a bunch of money on a run of records.”
High-Cost Entry Point
In contrast to what The Needle Drop said, NFTs currently appear to be meant for the super fans. The artists that I mentioned earlier are all big-name artists with a deep established fan base and lots of money.
also yes crypto will take copyright/IP businesses for a wild ride, but it's definitely the other way around, too
technological determinism gets us nowherehttps://t.co/zestxS5Wjj
— Cherie Hu (@cheriehu42) March 9, 2021
Industry analyst Cherie Hu states its cost a minimum of $70 to mint a single NFT and to make money off of the token, the artist would have to price it at around $100, which for a big name artist like King of Leon, who is selling their new album via NFT, it’s not too big of a cost, but for a small artist, it’s a different story.
In that same video, The Needle Drop brings up the idea that “it could be fun to do a one or two copy thing of a project… and do it as an NFT.”
In the days of the pandemic, NFT are a great way to supplement income until the day comes when concerts and shows can resume safely. And afterward, I think this will be an interesting alternative for future musicians and artists to take.