{"id":8422,"date":"2022-02-21T01:41:19","date_gmt":"2022-02-21T01:41:19","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/music\/nfts-in-the-music-business-from-collectibles-to-communities\/"},"modified":"2022-02-21T01:41:28","modified_gmt":"2022-02-21T01:41:28","slug":"nfts-in-the-music-business-from-collectibles-to-communities","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/music\/nfts-in-the-music-business-from-collectibles-to-communities\/","title":{"rendered":"NFTs in the Music Business: From Collectibles to Communities"},"content":{"rendered":"
If you\u2019re reading this article, you\u2019re likely aware of all the hype and speculation that NFTs drove in the music industry earlier this year. At Water & Music, we\u2019ve tracked nearly $70 million worth of these music NFT drops over the last 12 months, and have published several longform reports on the trends we\u2019ve spotted. We think the music industry presents an illuminating litmus test for how crypto could facilitate innovative use cases around co-creation and co-ownership of intellectual property \u2014 and upend incumbent industry power dynamics in the process, especially when it comes to supporting independent creators.<\/p>\n
For instance, according to our research, independent artists have commanded a 65% majority of all primary music NFT sales to date \u2014 a complete reversal of the major label-dominated market share in recorded music. The independent artist 3LAU broke industry records when he earned $11.8 million in his Ultraviolet NFT drop from just 33 fans, flipping the script on the high-reach but low-margin economics of music streaming. When it comes to interesting use cases, artists ranging from V\u00c9RIT\u00c9 to A Tribe Called Quest have executed on some of the first use cases of NFTs as vehicles to facilitate fractional IP ownership and royalty splits.<\/p>\n
We\u2019re also well aware that the music NFT market has crashed by 97% since its peak, from a high of $26.8 million in primary sales in March 2021 to under $1 million in July. Skeptics might point to this crash and say the market is done for, and that music NFTs are inherently worthless.<\/p>\n