There is no doubt that NFTs (Non-Fungible Tokens) are rapidly changing the way the world is transacting, as well as redefining what it means to build digital identity and online communities. While some people are sceptical about the long-term viability of NFTs, others believe that they have the potential to revolutionize many industries from finance to real estate; and many celebrities like Steve Aoki, Snoop Dogg, Paris Hilton, and Justin Bieber are actively investing.
We’re seeing NFT capabilities expanding across other industries and for musicians and voice-based artists in particular, it’s an exciting new frontier. NFTs are disrupting traditional models of steaming with musicians looking to find alternative revenue streams, own their control and connect more deeply with their fan base.
First things first, what is an NFT?
NFTs are unique cryptographic tokens, that can represent many different assets including videos, images, tickets, digital or physical real estate and of course, music! In simple terms, when assets are traded as NFTs, transaction records are kept on the blockchain, making it a permanent public record, and providing a certification of authenticity that can’t be altered or erased. The benefits to trading assets as NFTs mainly surround ownership and authenticity and for many artists and investors, opening whole new economies.
How are NFTs shaking up the music industry?
Today, about 80% of the music industry’s revenue comes from streaming services, but around 90% of all streaming revenue goes to the top 1%. For other artists, there is still a huge struggle to build a financially viable career. Now the tides are turning, there is a growing market for music NFTs and in 2021 alone, sales of music NFTs totaled over $83 million (Water & Music). While this figure alone isn’t indicative of what went directly to artists, it does give a fair representation of the value fans and collectors see in this space.
For the first time, NFTs are presenting a future in which musicians can have less reliance on traditional models in the industry, without labels or streaming services. The technology underwriting NFTs allows artists to set their own pricing, have more creative control over releases, see greater financial incentives and connect in new ways to their fans.
Musicians’ NFT collections can create a whole new world of fandom, with certain rights and benefits given to token holders. Anything from exclusive access to experiences, merchandise, concert tickets, meet and greets or other private fan communities. One great example of this is when musician 3LAU auctioned his 2018 album as an NFT and has since sold 33 NFT albums, which he live-streamed on his Twitter account. His fans could redeem their albums for products such as limited-edition vinyl, access to never-released songs, to several physical experiences. The auction lasted for 48 hours and generated a profit of nearly $11.6 million USD.
How can musicians use Logcast to earn money?
If you want to get a boost from your earnings, you can join the Logcast platform to share and sell your audio clips — direct to your fans. Payments are made directly to you from your fans, and you can withdraw your earnings in just a few days. With nearly 80% of artists on Spotify having less than 50 followers, imagine if they could monetize those 50 fans more directly. Logcast offers a variety of ways for musicians to monetize and get greater financial benefits from their art.
Within the Logcast app, musicians can record voice notes/audio of up to 10 minutes which can be minted as an NFT within the app, with a few clicks of a button. As well as this, Logcast also offers creators ‘pay-2-stream’ capability known as $UPERLOGS where content is placed behind a paywall at a price set by the artist, with fans paying to listen.
For musicians looking to embrace a holistic, long-term and thoughtful approach to integrating NFTs into their business models, the mindset should be not just about collectibles either but about communities. Musicians can also harness Logcast to create two-way dialogue with their fanbase through features like ‘Circles’, which are group-based conversations in the app, based on special topics or interests.
Learn more about Logcast by visiting our website or downloading Logcast from the App Store.
About Logcast
Logcast™ is a social audio network empowering the next generation of audio creators. Built out of Sweden, the app lets people record, share and monetize short-form audio updates (known as “logs”) instantly with one tap. For the first time, podcasting has been made social — you can follow friends, join conversations, share your ideas and earn money directly from your listeners. The app is available worldwide on the iOS App Store.
