Musicians have sold $70.5M worth of NFTs to date.Independent artists still run the show — but major artists and labels are quickly catching up.
Several technical, legal and political challenges remain to mainstream NFT adoption in the music industry — it’s getting a lot of hype right now, but it is far from the “new normal.”
Ref.: Stats from Patrons Water & Music presentation
One of the biggest myths about the music NFT market right now is that the vast majority of revenue is being generated from single-copy, 1/1 auctions, where scarcity inflates the final bidding price. NOT TRUE!
67% of music NFT revenue to date ($42.5M) has come from NFT price fixed at the point of sale. Auctions (silent and 1/1) account only for the remaining 33%.
Approx. 150 musicians and music brands have sold NFTs in the last year.
This is an EXTREMELY small number compared to the number of working musicians today, and that the NFT economy has only impacted a small niche of artists and fans to date.
It is far from the “new normal.”
The vast majority of NFT revenue to date has gone to electronic artists ($47.8M).
Hip-hop, R&B and soul artists generated over $15M in NFT sales in the past 75 days alone, and now account for 23% of all-time music NFT revenue ($16.1M) so the expansion outside electronic is clear…
What does this mean?
Too much focus on the short-term cash grab and not enough exploration of the post-transaction experience. What can creators do with NFTs that will have actual value outside of niche, wealthy crypto communities?
Barriers to market!
At this stage, music NFTs are still largely for people who are already familiar with the technicalities of how crypto works and who are sitting on enough crypto to be comfortable investing $600+ in buying a digital artwork (or paying around $200 in gas fees to mint an NFT in the first place).
Lack of knowledge from most creators about how NFTs work, how to set up a crypto wallet, etc.
The creative industries are severely undervalued in their monetization. Copyright owners are outsourcing the administration and collection of their royalties into a largely outdated and inefficient system where up to 60% of their revenues do not reach its owners or investors.
NIM, with its efficient royalties’ collection, can offer copyright owners a more efficient royalties’ collection and easy access to investors by “leasing out” copyrights in splits (10% to 100%) for a defined period of time. With NIM technology, a 50% leased will potentially give the same royalties payments as before (10 years leasing period with NPS -15% valuation).
NIM is making NFT (the visual proof of the registration of Copyrights) available for everybody through the market place memorabilia (owned by Copyright Flow ltd and soon to be launched) and extensive white label services.
We believe registration of Copyrights should be as easy as setting up a company with a name and initial price (share capital) and shares in that copyrights providing the right to receive royalties (both temporary by investors and permanent by creators).
The preparation of CREATIVES® transfer from the Waves platform to the Ethereum based Avalanche platform is well underway.
The testing and writing of help text and creation of help text have taken more time than expected (nothing new here).
We will get back to you as soon as we have managed to fix a date for the move.