Atlantic Records on Web3 Strategy and the Future of Music

The music industry is developing. Musicians and record labels have begun experimenting with NFTs to help them engage with their fanbase in ways they never could before, hoping to seize the positive opportunities of blockchain technology, and separate the signal from the noise.

And for the past year and a half, Atlantic Records has done just that. Since partnering with rapper Rico Nasty to release a 1-of-1 animated NFT in honor of the artist’s music video for “OHFR” in March 2021, the major label has been slowly and steadily working with the artists on its roster to educate them on what possibilities Web3 has to offer. The slow-burn strategy could end up paying big dividends for the label, while empowering the artists and bringing millions of fans organically onto Web3 in the process.

Atlantic Records’ Web3 strategy

Non-Web3 native companies are often wary of blockchain-based technology, but as brands like Nike, Gucci and Lamborghini have proven, moving into the crypto and NFT world can work quite well for legacy brands. Aside from developing strategies that appeal to Web3 natives, companies need to make sure they don’t alienate or scare their consumer base by playing too fast and loose with a technology that remains poorly understood and much maligned.

The team at Atlantic understands this well. That’s why they’ve largely focused on creating Web3 engagements for the artists on their roster that involve free coin – NFTs that cost nothing to fans. In August, for example, the company helped indie artist Arden Jones send a free NFT to fans who pre-saved his monthly Age Tape project. Earlier that summer, they also introduced Jones to Dented Feels NFT Collection and community, all of which helped increase his presence in the Web3 space while also making him known for the same. But Atlantic knows it can’t throw its artists into the deep end with NFTs — that desire has to come from them.

“We don’t convince artists to come into the space. It has to be their interest,” explained Jordan Chalmers, Senior Director of Custom Activations and Emerging Technology at Atlantic Records, while speaking to nft now. “It must be their passion. They must be curious [about the technology]. And then it’s our job to educate and empower them and put them in a position to step into the space as a human being—not as this big celebrity trying to monetize their IP. We show them the playing field and let them take the first steps.”

Some artists are more eager than others. For example, singer, producer and multi-instrumentalist Sueco became Warner Music Group’s first artist to be featured in The Sandbox earlier this year. Part of the success of this partnership came from the artist’s pre-existing enthusiasm for the Web3 space. That excitement, Chalmers explained, carried over to his fan base.

Singer-songwriter Foauzia is another example of someone who was already an NFT enthusiast when Atlantic started helping them organically grow their Web3 presence. Already the owner of a Boss Beauties NFT, Faouzia and the Atlantic team began brainstorming ways the pop star could get more involved in the community without having to break the bank. They eventually licensed the artist’s song “Puppet” to be used in Boss Beauties’ announcement trailer for their Supper BB collection. Since then, the artist has become an active member of the community, joining the project’s Twitter room and engaging in the female-led mentorship program.

Navigating the bear market

The team at Atlantic has found that the deepening crypto winter has had a positive impact on the frequency and type of conversations they have with their artists. The past six to nine months have “supercharged” the kinds of questions the team is getting about the crypto climate, what’s causing the swings and how it might affect their ambitions in the space. These are important learning opportunities that, regardless of the broader economic context in which they play, help familiarize them with Web3.

IRL POAP activations

One of the more natural Web3 passports for musicians is the POAP protocol, which enables users to create digital badges or collectibles using blockchain technology. POAP engagements targeting fans attending a concert, for example, can significantly stimulate fans’ Web3 interactions while organically educating them about token-gated activities and benefits. The Atlantic team has experimented on several occasions with POAPS, such as when they did an activation for fans who turned up to singer and producer Oliver Tree’s pop-up event to celebrate the launch of his album Cowboy Tears earlier this year. Likewise, the label helped plan the appearance of a massive QR code onstage during rapper Kevin Gates’ Red Rocks April performance, allowing fans to create an NFT by simply pulling out their phones.

“We’re thinking of ways to retarget those fans and offer them some value,” said Joseph Khoury, VP of A&R and Marketing at Atlantic Records, in an interview with nft now. “[We want to] give them an opportunity to really understand and experience first hand how token gating works and how cool the opportunity is to be one of 75 people to claim [something like] a physical or digital wearable. We are always thinking of interesting ways to get as many people to create their first digital collectible. And we’ve seen an increasing number of people doing that, which is very exciting for us as we try to develop our strategy.”

Atlantic Records’ Web3 plans

Atlantic is currently in talks with some well-known entities in NFT and digital securities alongside “some major gaming platforms” for potential partnerships to coincide with the label’s upcoming 75th anniversary next year. Khoury and Chalmers are also focused on slowly building the company’s Web3 base and showing the music community how NFTs can work to their advantage if they so choose. Khoury and Chalmers also praised Warner Music Group’s business development team for striking Web3 partnerships that give them the freedom to engage creatively with artists on their roster. When asked what advice the two would give to non-Web3 native musicians wary of the volatility of the space, the pair responded by stressing optimism and education.

“I wanted to focus on the good,” Khoury emphasized. “Focus on the great work that a lot of really amazing creators are doing in the space. It’s very easy to get sucked into the headlines and the negativity. It’s easy. But really see and uncover the amazing stories that are happening from both visual artists and musicians who are navigating and use these tools to their advantage.”

Likewise, Chalmers emphasized that musicians who want to enter the Web3 space should do so in a way that feels natural to them.

“First of all, it’s not right for everyone,” Chalmers stressed. “But if you’re curious as a musician, go and watch [an NFT] collection and choose one that speaks to you. It’s no different than why we wear the shirts we wear, and why we shop in the stores we shop in – it’s because it resonates. My advice to them would be to keep it authentic. Don’t just do it for the sake of doing it. There must be a reason.”

Such attitudes are refreshing, especially set against a backdrop of NFT releases from major entertainment entities that often feel like shallow cash. And given the music industry’s unfortunate history of mistreating and taking advantage of the artists who run it, Web3 is poised to provide an injection of equity and refreshment to the sector that badly needs it. If they stay the course, Atlantic Records could very well end up leading that effort.