#167 - Can NFTs Benefit Independent Artists
Enabling equitable compensation - For decades now, musicians haven’t been paid fairly for their music. And when it comes to streaming services, the figures are far more grim. NFTs, in theory, have the potential to ensure that musicians are more fairly compensated for their work.
Artists can retain ownership - Artists can retain ownership over their music by making it an NFT. This means that, when they sell this content, they can receive fair pay. And, if the original NFT owner decides to resell the NFT, the creator can automatically receive royalties - a process that will be replicated each time the NFT is sold. This is all thanks to the record built into the NFTs metadata.
Good for remixes and collaborations - Collaborations are undoubtedly a great way for artists to double the reach of their music through simultaneously appealing to two fan bases. NFTs make remixes and collaborations easy due to the ability to edit being inbuilt into NFT exchange systems. Not only does it encourage collaborations between musicians, but also between creators across different industries.
Capitalising on scarcity - NFTs are lucrative due to their scarcity. And while their limited nature is the main driver for fans buying creators' work, it also has the potential to drive prices beyond affordability. While this is unlikely to be an issue for fans of smaller artists, for larger artists backed by big-label budgets, this could lead to an increase in the cost of tickets and merch, making these products less accessible to fans with a smaller budget.
Caveat: NFTS can also benefit big labels - While labels have been slower to the mark when it comes to adopting NFTs, big names in the industry are beginning to get involved - most notably Warner and the Grammys. If this trend continues, we may begin to see NFTs become increasingly adopted by those with more influence and power, again putting independent artists with smaller budgets at a disadvantage.
