Muse and their latest NFT sales will be included in the music charts

Muse breaks new ground with its latest offering. NFTs have gradually evolved from a fringe theme in an emerging market to one of the cornerstones of a multi-trillion dollar industry, says Emelie Olsson, Chief Operations Officer at Corite.

Nowhere is the uptake of NFTs more evident than in the music industry. Non-fungible tokens are increasingly being adopted by record companies, mainstream players and indie artists alike.

One of the latest examples is the limited edition NFT albums. The first will be released soon by Muse, an English rock band that almost everyone has heard of. While it’s clear the band isn’t the last to use NFTs, it’s not clear why this is such a big deal. Let’s take a closer look at the unique benefits NFTs can provide for both the artist and the fan.

Muse rewards its tech-savvy fans

Muse’s Will of the People NFT campaign is pretty easy to understand. The collection of 1,000 NFTs will be listed for sale on the Serenade NFT platform for £20, or approximately $24. Buyers will receive the NFT token and a high-resolution downloadable version of the album containing digital signatures from the band members. They will also have their names permanently listed on the associated list of buyers.

Issuing a limited number of ‘NFT editions’ of an album is a logical first step for record companies. These albums will continue to be made available through all traditional outlets, meaning the NFT experience can be offered as a bonus option to tech-savvy fans eager for a more unique and collectible experience.

Muse will be the first band to put out a chart-eligible NFT album, but they’re just passing the baton. They won’t be the last. A similar promotion has already been announced by Virgin Music, who will release 300 NFT copies of The Amazon’s third LP How will I know if heaven will find me? on September 2.

Other bands (such as Kings of Leon in 2021) have released NFT albums. The two upcoming albums are notable in that they have been designed to be “chart-able”. This means that the sales of the NFTs will be included in the band’s official sales totals. These developments suggest that similar campaigns may become increasingly common and larger in scale in the months and years ahead.

Things to think about before issuing an NFT

Producing and marketing a single or an album already requires a lot of time and financial resources. Offering a compelling “NFT Edition” is not as simple as clicking a few buttons. It requires developers and graphic designers, as well as an artist and a fan base with some basic blockchain knowledge.

Here are some things I think artists and people who want to create their own non-fungible tokens should know. Before creating NFTs, you should determine how much you are willing to spend on them. If you want to do it as cheaply as possible, choose the blockchain with the minimum fees.

You can coin at night when traffic is much lower and see the floor price of the secondary market value. Remember to think about gas, account and listing fees.

The cost of issuing an NFT call can vary between $1 and $1000. You need to invest in marketing in addition to coin spending, so start working with tokens when you have an emergency fund and a steady income.

Choose a fair price and don’t expect NFTs to pay quickly. An Andreessen Horowitz report showed that NFT collections with coin prices above 0.25 ETH rarely get more than 10x returns.

NFTs can give you:

-Residual Income: NFTs can be programmed to derive a certain percentage of the transaction’s value each time it is bought and sold. If a collector’s item becomes more desirable over time, it can potentially be bought and sold many times over for far more than its original selling price. In this case, the artist and/or record label receives a long-term source of income that is not possible through traditional album sales.

-The ability to stand out in a crowded market. Offering an NFT album is something that can introduce existing fans to new technology, or introduce fans of the technology to the artist. As both blockchain and NFTs have become popular topics recently, being an early adopter can attract attention.

-A new way to engage fans. Releasing a limited edition NFT will pique the interest of dedicated fans. Non-fungible tokens can be used by performers to reconnect with music lovers and reward them with exclusive merchandise or other digital collectibles.

Challenges can turn into opportunities

The main challenges are the technical knowledge required and the costs associated with developing and marketing an NFT collection. As this trend gains momentum, I predict that there will be an increasing number of platforms offering “NFTs as a Service” to musicians. This will lower the entry barrier and streamline the entire process.

Interestingly, NFTs themselves can provide a solution to one of these challenges by helping independent artists raise the funds needed to produce and market their content.

NFTs as a crowdfunding entity

Alan Walker’s Origins EP is a recent notable example of NFT crowdfunding. The first fan campaign on Corite allowed fans to share streaming revenue from platforms like Spotify. The Origins NFT case that followed allowed owners to receive a portion of the music video’s streaming revenue from YouTube.

Through the NFT sale, a total of $47,000 was raised. This case is a proof-of-concept that can be used by smaller actions in the future. Artists can issue NFTs that give holders a claim to future revenue, or even partial rights to the music itself.

The artist is paid upfront to help produce and market their material, while the fan gets the potential to benefit from the artist’s long-term success.

Another example is singer-songwriter Pip’s Cotton Candy NFTs campaign, which launched on March 21, 2022. Through this campaign, he hoped to raise 35 ETH, or $109,660 (the exchange rate has changed since then). Pip stated on his Mirror.xyz crowdfunding page that he needed the funds for the release of his EP NFT and the establishment of his own record label.

Notably, all 15 gold backstage passes were sold for 0.5 ETH, while only 51 of the 300 silver backstage passes were sold. So before starting a crowdfunding campaign, it’s crucial to set realistic goals. Building an audience is also important.

Users are now more than mere spectators

In traditional models, fan interactions have been one-way. For example, they can buy an album on iTunes – their money goes to the platform, the label and the artist, and they receive the music. But apart from the content, nothing else is received. The difference between this traditional experience and the NFT experience is that with NFTs the end user can contribute to an artist while being rewarded.

In the Muse example above, the buyer receives not only the music, but also the limited edition, which can become a desirable digital collectible for avid fans of the band. NFTs can also be used to offer additional privileges, income rights and more.

In all cases, the result is the same: end users gain primary benefits with the added luxury of selling their collectible to a secondary buyer if the price is right. As people become more comfortable using blockchain technology and get used to the additional benefits it can provide, I believe the demand for NFT editions of both singles and albums will increase dramatically.

NFTs are not a surprise; they are the new standard

For many new artists, the goalposts have already moved. Instead of asking “How can I get signed to a bigger company?” they are now asking “How can I build and monetize a dedicated fan base in a win-win way?”

Countless success stories have already emerged where artists produce their own music, establish a Twitter presence, build YouTube or Twitch followers, get discovered on TikTok, etc. Blockchain’s peer-to-peer nature is a natural next step for artists and fans to connect directly. .

Major brands and streaming platforms, such as Spotify, have also demonstrated that they will move to embrace and adopt NFT technology. The most creative use of Web3 technologies will be developed by independent artists and emerging platforms. But mainstream companies will take the use cases that have built a proven track record and run with them.

Muse is in good company

It is unrealistic to expect NFTs to transform everything in the music industry at once. However, some blockchain applications will surely prove to offer a superior experience for artists like Muse and fans and become industry standard practice.

One thing is certain – blockchain has sparked a shift that can transform consumers of content into active participants, asking, “What’s in it for me?” This puts the power of ownership in the hands of the fans and artists.

About the author

Emelie Olsson is Chief Operations Officer at Corite, a blockchain crowdfunding music platform. She has a previous background in the media, especially writing, podcasts and digital marketing. She has also successfully implemented various charity projects with a focus on helping socio-economically vulnerable families and individuals around Sweden.

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