How music NFTs beat Spotify
Convincing an industry to adopt NFTs is like trying to convince a group of people to start day drinking.
In many instances, it's frowned upon.
But in the right industries, the technology has been quickly embraced (like a round of mimosas at brunch).
One of those fast-adopting industries, is the music industry...which is something we haven't completely understood until now.
Not because we don't understand the value NFTs offer to artists, but because we couldn't see how they would appeal to the broader listener base.
You're going to ask your listeners to set up a crypto wallet, buy an NFT, so they can access an .mp3 download...
And then what? Load it onto their phones via iTunes?
Get outta here! It's never going to happen.
But we had it all wrong...
We were looking at how music NFTs might appeal to the broader listener base.
When really (in the case of NFTs), it's the top 1%, of the top 1% of fans that matter - the 100 die hards that are willing to drop hundreds/thousands of dollars on rare memorabilia.
And this case study proves the model:
RAC, a Grammy award-winning recording artist has earned about $40,000 by selling unique copies of a single song to just 100 fans.
To earn that kind of money on Spotify? The song would need to rack up 9.75 million streams!
(And the artist would only end up seeing a sliver of the total revenue after royalty and publishing splits were doled out).
So here's the Oprah-patented 'Aha Moment' we just experienced:
Music NFTs aren't for the masses - they're for a select few.
And in that way, they work.
