The market for composers of music is more competitive than ever before, which means that revenue is lower and more difficult to achieve if you don’t have a stable and recognized position. The sale of physical products – i.e., CDs – has decreased, and the industry has witnessed a steady increase in digital music, with streaming platforms like Apple Music and Spotify taking center stage. As times change, it’s critical to adapt to remain competitive. NFTs help develop a new market targeted at direct users, amateurs, fans, etc., so it’s no longer necessary to rely on record contracts, brand deals, and extensive touring to advance a music career.
NFTs are the latest in a series of crypto assets based on blockchain technology, and there’s optimism around their acceptance and development as they make transactions more efficient, eliminate intermediaries from the value chain, and enhance security. NFTs are mainly linked to the Ethereum blockchain, but it’s not a prerequisite for creating digital assets. Bitcoin, for instance, can be used to create unique and immutable digital artifacts owing to the Ordinals protocol, and the cost to create an NFT can vary depending on the Bitcoin price today. Inexperienced creators run the risk of losing their money if they don’t pay close attention to what they’re doing.
In The Ever-Changing Landscape Of The Music Industry, Securing Income Is Vital To Thrive
It can be hard to navigate the music landscape, especially when it comes down to making a living from your art, so you must secure various revenue streams to push your career forward and pursue your passion. All endeavors that are taken seriously should be treated as a business model. Here are the key revenue streams to keep in mind:
- Record sales: Record sales, or music sales, are activities related to selling albums, singles, or music videos. With the rise of digital downloads and streaming services, physical sales have declined, meaning they’re not as lucrative as they used to be.
- Music streaming: Music streaming provides an uninterrupted listening experience without saving the files on the user’s device. The revenue generated is often modest, so musicians earn a fraction of a cent per stream.
- Live performances: Live performances allow artists to reach new listeners and transform those in the audience into fans. Concerts, festivals, and tours offer an important revenue income. Still, there are high production costs, including sound equipment, venue rental, and stage setup.
NFTs offer a novel approach to ownership, monetization, and, above all, fan engagement, and early adopters enjoy the advantages of security, immutability, and decentralization.
Artists Can Create NFTs That People Can Own, Use, Or Trade
A music NFT is a unique digital asset tied to music, such as songs, albums, concert tickets, exclusive merchandise, or virtual experiences, which can be collected by fans, providing a sense of exclusivity and uniqueness that other asset types can’t match. Music NFTs can be traded and exchanged for money, cryptocurrencies, and other NFTs; it depends on the value the market and the owner has placed on them. You can tokenize a myriad of digital media, and what’s associated with the content of the NFT is stored in the metadata, typically specified in a JSON format. It can point to the link you use to view the NFT.
If you’re new to the world of NFTs and are curious to know what you can do to make money, here are our suggestions:
Decide What Content You Want To Turn Into An NFT
As discussed earlier, you can convert almost anything into an NFT, so select your best work to make the most impact online. For example, you can release a video clip in the form of an NFT, but attention must be paid to the fact that each platform has its own process for creation, so do your homework and choose one that meets your needs. By using NFTs, you can build a community around your music, connecting with fans, influencers, and peers. The more emotionally connected people are, the more money you’ll make in the short and long term.
Choose A Blockchain Platform
Indeed, Ethereum is the dominant force in the NFT space, but more and more developers are exploring the potential of minting and trading on the Bitcoin blockchain, which guarantees security, stability, and scalability. Ordinals, as they’re referred to, are relatively new, so their accessibility is limited to the Bitcoin ecosystem. To mint a music NFT, you must run a Bitcoin node and install an Ord wallet, which supports sat control and sat selection, allowing you to send, receive, and store your inscriptions. You can inscribe Satoshis into the wallet you control – it’s just that this method is highly technical and more suitable for computer literates.
Another way to inscribe a Bitcoin Ordinal is to use a no-code inscription tool. Binance, for instance, has an Ordinals Inscription Service, so ensure you have a Taproot address and a verified account; the process is relatively straightforward if you’re familiar with Bitcoin. There’s a cost incurred when you turn music into an NFT. Ethereum and Polygon use gas fees, whereas Bitcoin uses transaction fees, a small amount paid to incentivize miners to include the transaction in the block of chains. The price of your music NFT can be a fixed price or an auction-style sale. It’s completely up to you, but think about factors like your popularity as an artist and the uniqueness of your NFT.
Set Up Your NFT Listing
Once you have Bitcoin in your wallet, upload the desired file from your desktop, decide on a transaction fee rate, and designate the address where the Ordinal should be sent. When your art is actually converted into an NFT, you’re free to list it on a marketplace, with the guarantee that you’re the owner. The description field is an excellent opportunity to tell your story, so spend as much time as necessary crafting a meaningful description. You’ll receive payment for the sale of the NFT in your crypto wallet. Following a successful listing, you must attract potential buyers, so strike a partnership with an influencer. Why not?
