As one of the oldest entertainment industries in existence, the music industry has experienced many technological advancements that have fostered widespread adoption. The digitization of music means that artists can reach any audience around the world, and digital distribution gives people unlimited access to music.
Along with these advancements in distribution, music monetization has also presented some flaws. The way musicians make money in digital format reduces the margins of media or video revenue. With the online environment filled with cut-throat intermediaries, artists are forced to generate income from offline events such as concerts and selling merchandise.
“Web3 and existing platforms have helped us usher in a new chapter in the music industry,” Takayuki Suzuki, CEO of MetaTokyo (Web3 Entertainment Studio), told Cointelegraph, “It’s hard for me to find good music, I’m in Tokyo and even overseas. Many record stores have seen it. It is now accessible via streaming.”
The new paradigm of Web3 tools provides creators with ways to develop existing audiences and turn them into communities.fan relationship becomes critical In Web3, their relationship with the artist has never been stronger.
Marcus Feistl, COO of Limewire, a marketplace for music NFTs, told Cointelegraph:
“The music and creator industries are definitely on the verge of change, moving from a Web2 model focused on content consumption to a Web3 model focused on content ownership. Artists are just beginning to figure out how best to use Web3 to engage with their audiences. “
in numerous use cases Non-Fungible Tokens (NFTs)The most popular are the ability to form a community around token holders.The Rise of Decentralized Autonomous Organizations coordinating these communities in a digitally native way. All of this unlocks potential opportunities for independent artists willing to innovate in the next iteration of the music space.
Disrupting the music industry again
The music industry is always open to trying new things. As Mattias Tengblad, CEO and co-founder of blockchain-based crowdfunding music platform Corite, told Cointelegraph: “When music videos came out in the ’80s, it was brand new and people didn’t know what to do. The adoption of these things It usually gets off to a slow start, but it eventually becomes mainstream.”
The Web3 platform is in its early stages. Most users are cryptocurrency-savvy and have a basic technical understanding of how to interact on-chain. As the space grows, the Web3 music platform can be a key part of the way labels and artists do business and market themselves.
The opportunities this technology provides fosters connections between like-minded people, breaking down any previous barriers to forming communities. “It’s hard to maintain good relationships within the industry,” Suzuki reflects, “I’ve been meeting and reconnecting with visionaries all the time.”
These innovations are not unique to established players in the music industry, and young talent native to Web3 can open the door to new forms of expression and monetization. It encourages the relationship between artists, intermediaries and fans to transform into a community.
Musical innovation gives those artists who test new technologies the opportunity to become the next generation of next-generation artists. This could reduce the importance of record labels to an artist’s success. Many record labels are getting involved, moving some of their activity on-chain and releasing NFT collections.
“There will always be a need for record labels, but I think those that cannot adapt to changing circumstances risk being left behind,” Tengblad said, adding:
“Once you have a loyal following, I think this technology opens the door for you to directly monetize your work, while also sharing the benefits of your success with your supporters.”
A successful Music NFT launch shows how Web3 can disrupt the fundraising model by allowing artists to seek funding directly from fans. Artists who strive to engage with their communities and build direct relationships with their fan base will benefit the most from Web3.
From audience to community
Audience is often understood as a one-way relationship, while community means a two-way communication between an artist and its fans. For a community to be productive, those involved should enrich the creative process by actively listening to each other’s needs and coming up with solutions that improve the community as a whole.
As artists move to a more community-driven approach, blockchain and NFTs allow artists to raise money from fans without a middleman and provide unique benefits and opportunities for those who contribute to them. The popular platform remains an important tool for community building and music distribution to complement the Web3 strategy.
Tengblad commented: “Affordable digital recording has led to a surge of musicians on YouTube who collaborate with the community, give instant feedback, livestream and more,” social media and chat programs such as Twitter, Instagram, TikTok, Telegram and Discord allow for People who are interested in what you do have the opportunity to engage with more of your content, connecting with you and each other. “
If an artist posts a new video on Youtube, their community can contribute to the artist’s work by providing instant feedback and suggesting new ideas that can help the artist grow and develop further.
Activities undertaken by the community tend to have a greater impact and an immediate impact on the artist’s growth. With strong community support, artists have a solid foundation on which to build their careers.
The engagement process between artists and their communities must be as simple as possible. Suzuki explained:
“Web3 will empower artists and creators, so education is needed. The intermediary could be a supporter or contributor in the community who doesn’t intercept information or money.”
The first is clear communication and making it easier for everyone to use NFTs. Bringing NFTs and content ownership models closer to fans is what ultimately drives the artist community as it creates a stronger and more unique connection between fans and creators.
“For creators, this means an easy-to-use self-guided process where they can create their first NFT project in just a few clicks,” Fesitl concluded, “For fans, it means you A fully managed service can be used without the need to own a wallet or directly connect to an external wallet, providing a full Web3 experience.”
The artists most prepared to succeed in today’s industry are those willing to use all the tools available to build an interactive and engaging community around their work.