You can now invest in a song through an NFT; Here’s how

You can now invest in a song and earn royalties by buying an NFT. This is because FanTiger, which is a dedicated music NFT marketplace, has launched its debut music NFT featuring renowned Punjabi singer and actress Sunanda Sharma.

Through their platform you can make a contribution by buying music NFT and in exchange you get many exclusive privileges along with the royalty income. With this arrangement, the artist only needs to focus on the art and FanTiger supports them in marketing and distributing the song.

“In this case, even fans will promote the song as they have partial ownership of the song. This is completely different from the old days concept where fans would just listen to the song and maybe talk to one or two of their friends about the song. But with NFT- er, fans have an incentive to promote and popularize the song. Therefore, in my opinion, NFTs create an equal, open and transparent field both in terms of funds raised and distribution of revenue among fans. All of this is captured on the blockchain. When we open the marketplace in the next 2-3 months, these NFTs can be sold person to person and generate more revenue,” said Prashan Agarwal, CEO and co-founder of FanTiger, who is also the former CEO of Gaana. com .

For example, if an artist wants to raise Rs 20,00,000 to make a song video and promote it. In this case, 2000 NFTs of Rs 1000 each can be issued to raise the money. Once the song is created, it will be played on various streaming platforms like gaana.com, spotify.com, youtube.com etc. The royalty income generated from the streaming of the song will be shared between the artist and the fans in a 50:50 ratio.

“If the song becomes a hit, the upside will benefit both the artist and the fans. So it’s a win-win situation for everyone,” adds Agarwal.

“We’re trying to bring the fan community together, to support the artist on three fronts: funding, marketing and distribution. Depending on how much money the artist collects, the NFTs are created and value is derived for each NFT. Fans then buy these NFTs on the FanTiger platform and help the artist raise the desired money,” adds Agarwal.

It is not only royal fans who also get various privileges as NFT holders (fans) will be part of an exclusive community where they can interact with the artist and share feedback. “As part of the community, fans will have access to an exclusive listening party where the artist will play songs for the community members. It would be like a mini and exclusive concert for the community members,” says Agarwal.

Depending on the level of NFT, (silver, gold or platinum) one can meet the artist, have an exclusive video call with the artist, get VIP passes to the artist’s concerts, get personally signed merchandise and other benefits. “In the future, FanTiger will create events/tours/concerts that will be NFT gated. This primarily means that only if the person has NFT, he/she will be able to attend the event/tour or concert,” says Agarwal.

How does FanTiger earn? “We take 2 percent of the fund raised, and that is our primary income. We also take 10% of the royalty generated on the song during the 5-7 year period (it would be different for different NFTs). When the FanTiger marketplace opens in the next 2-3 months, we will charge 10 percent of the profit on the secondary sales of NFT (charge the user) which will be equally shared between us and the artist,” says Agarwal.

Importantly, while the industry waits for clarification, NFT should be considered VDA and taxed at 30 percent. “With NFTs that have an underlying asset, it is already taxed and therefore cannot be taxed again. However, every secondary sale will be taxed as per the regulation,” said Agarwal.