As one of the oldest entertainment industries in existence, the music industry has witnessed many technological advancements that have contributed to its widespread adoption. The digital transformation of music means that artists can reach any audience around the world, and the digital distribution of talented people with unlimited access to music.
With these changes in distribution came some shortfalls in music monetization. The way musicians make money digitally has led to a reduction in media or video revenue. Artists have been pushed back to profit from offline activities such as concerts and merchandise sales as the online scene has been filled with middlemen who take a piece of the pie.
“Web3 and existing platforms help us open a new chapter in the music industry.” Takayuki Suzuki, CEO of MetaTokyo – Web3 Entertainment Studio, told Cointelegraph, “I’ve had trouble finding good music and I visit many music stores in Tokyo and sometimes overseas. It’s now easily available via broadcast.”
The new Web3 tools model gives creators tools to expand existing audiences and turn them into a community. Relationships with fans have become extremely important and have never been closer to the artists in Web3.
Marcus Vestel, COO of Limewire, an NFT music marketplace that was originally a free music platform for peer-to-peer file sharing, told Cointelegraph:
“The music industry and creators are definitely on the path to gradual change, moving from a content consumption-centric Web2 model to a content ownership-centric Web3 model. Artists are just starting to find a way to better use Web3 to interact with audiences.”
Among the many use cases for non-fungible tokens (NFTs), the most popular was the ability to form communities around token holders. The emergence of decentralized autonomous organizations has been an experiment in coordinating these communities in a digital, local way. All of these potential opportunities open up for independent artists looking to innovate in the next iteration of the music space.
Shut down the music business again
The music industry has always been ready to try new things. As Matthias Tengbla, CEO and co-founder of Corite, a blockchain-based music crowdfunding platform, told Cointelegraph: “When music videos came out in the 80s, they were brand new and people didn’t know what to do. Often they are accepted. Things are slowly but surely becoming mainstream.”
Web3 platforms are at an early stage of development. Most users are experts in cryptography and have a basic technical understanding of how to interact throughout the chain. As the space evolves, Web3 music platforms can become an integral part of how record labels and artists do their jobs and market themselves.
The possibilities offered by this technology facilitate connections between like-minded people to break down any previous barriers to community formation. “It was difficult to maintain good relationships in the industry,” Suzuki reflected. “I met and reconnected with visionary people.”
These innovations are not limited to the music industry players, and young talents from Web3 can open the door to new expressions and income generation. It encourages relationships between artists, moderators and fans to move into the community.
Related: Web3 creates a new music genre based on NFT
Musical innovation gives these artists who test new technologies the opportunity to become the next big names of the next generation. This can reduce the importance of record companies to the success of an artist. Many record labels are moving some of their business online and releasing NFT sets.
“Record companies will always be needed, but I think companies that can’t adapt to the changing landscape are in danger of being left behind,” Tingblade said, adding:
“When you have a loyal following, I believe technology gives you the opportunity to monetize your business directly and also share the benefits of your success with your supporters.”
NFT’s successful music forecasts show how Web3 can disrupt the fundraising model by allowing artists to approach fans directly for funding. Artists who make an effort to engage with the community and build direct relationships with their fans will benefit the most from Web3.
From public to community
The public is usually understood as a one-way relationship, while the community involves a two-way communication between the artist and his fans. For a community to be productive, its members must enrich the creative process.