Launch an NFT Music Marketplace: A Business Model With a Sound Future!
Look at the need for businesses to launch NFT music marketplaces and the reasons these applications can be successful.
Explore the various benefits of these platforms that address the shortcomings of the existing music industry. Learn how an experienced NFT marketplace development company can deliver steadfast platforms supporting music NFTs for aspiring business minds.
Web3 technology has been overflowing with numerous innovations that make someone’s life easier than earlier. This market, powered by cryptocurrencies and non-fungible tokens (NFTs), works in unassuming ways to revolutionize conventional practices across industries. Music has been one of those industries that witnessed the rampant impact of Web3, as this technology opened the industry’s gates to artists who did not receive enough monetary benefits in the Web2 space. Our blog will focus on what possibilities exist for a business-minded individual planning to launch an NFT music platform and how an experienced NFT marketplace company can make the process easier for you.
Problems the Modern-Day Music Industry Faces
According to a report from ReportLinker, the global music market is expected to reach a value of $28.93 billion in 2023, with an estimated CAGR of 8.54% till 2028. Obviously, music has a place in most people’s lives, and people who cherish it more will be creators. But has the current music industry been creator-friendly? The answer depends on whom you ask as a creator not exposed to the benefits of Web3 will say Yes, and a creator who has witnessed the benefits of NFTs will say No. Yet, the modern-day music industry is riddled with problems, especially when it comes to creators who put all the hard work into their compositions.
Today’s music industry is mostly ruled by streaming platforms and record labels that reap huge profits compared to artists. The streaming service offers some money for each stream of the song, which is transferred to the recording label (in case the artist comes under one). The label only transfers a small portion of the money to the artist, which isn’t sustainable in the long run.
Piracy is yet another issue that has been plaguing the already-under-monetized artists. People download and listen to music from such portals, which reduces the number of streams, leading to reduced monetary benefits.
Due to such low monetization from streaming, creators have to opt for other ways like concerts, merchandise, business collaborations, and even jobs in other facets of entertainment, such as acting. This serves as an additional pain point for artists who could not tap into music as a stable income opportunity.
NFT Music Marketplace: What It Offers
After seeing the shortcomings of the current music industry’s monetary flow and thinking of NFTs’ potential, you might have a spark about how an NFT music platform could be helpful. NFT marketplaces for music can aid creators to mint their albums, extended plays (EPs), or even singles as NFTs. With NFTs representing their music, it becomes easier for them to gain monetary profits without the need for intermediaries like streaming services and record labels.
Several generic NFT marketplaces allow creators to list music-based NFTs, including OpenSea, Rarible, Mintable, Binance NFT, and Enjin Marketplace. These platforms open opportunities for musicians to get sufficient market exposure before they can get on full throttle.
Even NFT marketplaces predominantly known for their artwork-related listings, like SuperRare, Nifty Gateway, and NFT Showroom, offer provisions for music-based NFTs to be listed and traded. These apps enable creators to tap into a more artistic section of Web3 enthusiasts, elevating their NFTs’ value proposition.
Apart from these platforms, there exist exclusive NFT marketplaces for music where only music and related products are available for trading. Platforms like Sound.xyz, Audius, Royal, Async Music, and Catalog empower musicians to list and sell their musical compositions.
What Do Music NFTs Offer Creators and Fans?
Many creators have already been hooked to the idea of music NFTs, mainly due to their work that allows them to benefit more than ever. These NFTs come with numerous utilities that can range from simple provisions to complex rights to holders while blessing creators with flourishing benefits.
Most NFT music platforms are open for all creators, irrespective of their background, genre, or experience levels. Artists can mint and list NFTs for sale in simple ways akin to the workflow in most generic marketplaces without any eligibility criteria.
Some NFT music platforms offer NFT holders a share of revenues and royalties for music albums. This can be a small portion of the overall revenues and royalty proportion depending on the particular NFT’s rarity traits. Such platforms tap into external streaming services as a way to ensure regular monetary flow.
Several platforms offer users (creators and fans) the capability to create token-gated playlists, which can create a closer bond between creators and fans. Even Web3 influencers can tap into these playlists as a means of fostering meaningful relationships with followers.
Types of Music NFTs One Can Launch
NFTs based on music can back different kinds of music-related products. Different creators approach music in different ways, and NFTs offer them endless possibilities, allowing them to reap the benefits in the long run. Even ardent fans and music listeners can benefit from various NFTs based on what they provide.
Album Releases: Music composers and artists can launch their album releases as NFT collections that ensure exclusive access to fans for the album. Doing so can enable creators to reap considerable income aside from other channels, and even passive income through royalties becomes possible.
Beat Selling: Creators can sell beats they had composed through an NFT music platform to fellow creators and fans. These can come with predefined conditions for royalties for secondary sales and usage in the public domain, enabling original creators to gain stable income.
Merch and Ticket Sales: Artists can sell their exclusive fan merchandise and event tickets as NFTs. These enable people to purchase and trade these items without concerns about counterfeit products and entry passes that have been rampant over the years.
Rights Distribution: Music NFTs can also offer profit distribution rights to holders through on-chain agreements. Such types of NFTs can attract an artist’s big-time fans who wish to be closer to them while garnering a part of the income the underlying music yields.
How Can You Launch an NFT Music Marketplace?
From initial conceptualization and platform design to smart contract development and post-launch support, such companies provide you with best-in-class services to realize your novel NFT marketplace application.
Hence, we have seen why one should launch an NFT music platform by seeing everything related to the model in depth. Suppose you’re a business-savvy individual looking for a great business model viable in the long run. In that case, a skilled NFT marketplace development company can assist you in building an application that can fulfill your expectations. Such firms come with proven experience in the industry, seasoned professionals, and the latest technological stacks, allowing you to create a marketplace that can attract music creators, artists, fans, and NFT collectors. Get started with your NFT musical business adventure right away for optimal success!