Over a hundred million people watched Rihanna open the Super Bowl LVII halftime show with her multi-platinum hit Bitch better have my money.Surprising, those who cheer the loudest
canhave been a few hundred blockchain fans.
Earlier this month, Web3 startup AnotherBlock (in partnership with music producer Deputy) released a collection of 300 NFTs that give holders, among other benefits, a share of streaming royalties for BBHMM.In theory, this means that the owners will get paid every time the song is streamed on platforms such as Apple Music or Spotify. In reality, things are a bit more complicated.
First, each NFT entitles its holder to 0.0033% of so-called master royalties from licensed digital service providers, but the NFT Ownership Agreement notes that AnotherBlock and Deputy will deduct taxes, blockchain “gas” fees and other costs and expenses from this amount . The agreement also makes clear that royalties will not be paid automatically; instead, NFT owners must use their crypto wallets to claim their share of royalties, paid out in ETH cryptocurrency, when those shares become available every six months. Also, AnotherBlock and Deputy will collect royalties for BBHMMin US dollars and convert them to ETH “within a reasonable time” after receipt. Given the volatility of cryptocurrency and the uncertainty of the regulatory landscape, NFT holders can watch from the sidelines as the real value of their royalties fluctuates wildly. As the agreement is “subject to Swedish law” and requires disputes to be resolved by the Stockholm District Court, NFT holders may find their options limited in the event of a dispute.
Nevertheless BBHMMNFTs are a great example of how blockchain technology and NFTs can empower artists and their fans. Offering NFT holders a share of streaming royalties could give artists a new way to monetize their music, control revenue streams and engage audiences without the need for a record label. At the same time, fans can strengthen their connection to their favorite artists by owning a direct stake in the music they love.
As music NFT services such as AnotherBlock, Royal and SongVest continue to work with popular and up-and-coming artists, we are likely to see increasing interest in music NFTs and perhaps a disruption of the music royalty landscape. But for this to happen, these services need our money…
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