In the past few years, people have digitized the creative industry in hopes of keeping up with the high demand for fast, accessible and innovative creations. Facebook's recent announcement of their rebranded company ‘Meta’, exists to bring the metaverse to life and help people connect, find communities and grow businesses. This is a sign of social enterprises expanding social experiences with other people, evidently giving content creators, marketers and creatives the chance to continuously grow.
In connection the rising phenomena that is revolutionizing finance, particularly around the way the people invest in art, music and sports is no stranger to this growth and trend.
What are NFTs and their popularity?
Non-fungible tokens (NFTs) are being seen as the new frontier of revenue generation, with a great regard to the arts. Non-fungible means there is no equivalent for which the item can be exchanged. When it comes to NFTs, the technology establishes the uniqueness and ownership of a piece of digital art, which is then sold via a platform. As a result, each sale of this art is recorded on the blockchain, creating a digital provenance that can not be altered by anyone.
The previous industry mistakes.
With the industry's previous mistakes regarding digital technology and the evolution of independent artists and even the way the consumer listens to and purchases music, the industry can not afford to repeat previous mistakes in the fast changing pace of the sector. In the 2000s when consumers took a shift in the way they record, distribute, store, and play music, it caused a widespread economic change in the music industry. Their resistance to developing the surge in new digital methods to discover, access, listen to, share and purchase music caused a death spiral.
The relevance of the them in the music industry.
This year in particular the rise of NFTs have taken the world of music by storm. By selling tokenized versions of their tracks, digital art, or virtual and real-world merchandise, some of these performers have added millions to their revenues. NFTs and fan tokens have the power to reform the entire music industry with a reformed way of creators engaging with their fans and producing music.
How creatives can benefit from them.
Part of the promise of this new technology is that creatives are now able to connect directly with potential buyers on each platform, liberating artists from third party platforms. Artists can also now offer their fans unmatched experiences by providing signed digital copies of albums, each one distinct from the other, all represented by a unique token. That same policy can apply to digital one-on-ones and limited entry shows, ensuring fans feel closer to their favourite acts. NFTs can particularly benefit the indie scene providing unique rewards for using a streaming platform, motivating them to stay loyal.
The unique engagement can translate into crowdfunding opportunities as well. For example new film projects can entice funding with unique digital collectibles related to characters and other key aspects. Considering each unique item can be tokenized, it is easy to transfer the token to a valuable user, or winner, leading us to NFTs growth.
The direction of NFTs in the creative industry is their increased validity within the community for both users and consumers. NFTs having a unique signature and there being no way to duplicate or scam the assets will go a long way in providing financial security for the developing fanbase. They're much more likely to spend on tickets and collectibles, knowing they won't be scammed. Even physical art can benefit here. Considering anyone can track token transactions, it's possible to check if a piece is real or a counterfeit. For example, artists can simply certify their work via an NFT, which users can then purchase a license to access
In conclusion, the music industry is willing to branch out and explore the advantages of NFTs. The engagement from consumers and fans can translate to opportunities for artists to fund even their other creative revenues. Considering each unique item can be tokenized, it is easy to transfer the token to a valuable user.
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LinkedIn: Ownors Technology Inc.