Music NFTs Can Revamp Music Royalties
This was first published as a Twitter thread.
Here’s a hot take: artist streaming royalties are really just rent-seeking behavior.
It makes no sense for artists to make money every time a song is played when streams are just radio advertisements for their personal brand.
In the future, artists will:
- Free content
- Maximize distribution
- Monetize via web3
Music NFTs are not going to replace Spotify. They are a net new product that can work alongside streaming.
Here is a glimpse at my timeline right now:
My partner Jesse Walden has written about commoditizing the complement between NFTs and streaming before, but here the reverse may work better.
Instead of commoditizing the complement, monetize the complement. I.e. maximizing distribution (free streams) monetizes via NFTs (through hardcore fans).
A mental model for music NFT collectors is the progressive decentralization (unbundling) of the record label. Collectors can be a net new addition to an artist’s fanbase. Financial speculation is no longer reserved for just the suits and music executives.
The entire legacy music system is broken for artists and doesn’t work. It’s inevitably trending towards zero.
In some cases, music labels are pushing artists towards violence, taking out life insurance policies and then profiting off their death, like
Where are we headed? Hear it from David Greenstein.
Read more about the future of creator NFTs per my partner Li Jin