The NFT Concert Poster of the Future
( token concept )
“Artists are beginning to discover the entrepreneur in them … I have to believe there’ll be another platform player that comes along and gives artists more direct control, including more ways to monetize their relationship with fans”
- Youngme March 24, 2021 in After hours Podcast FROM HBR
There is no doubt blockchain and cryptocurrencies are disrupting many markets and that they will continue to do so for the following years. As this new digital concept has evolved, more and more industries and disciplines have fallen victim to its disruption. Although the long term effects of these are still unknown, their popularity is impossible to ignore. One of the latest most popular blockchain uses is the trendy NFTs, or non-fungible tokens. Thanks to the traceability of blockchain transactions, the authenticity linked to these tokenized digital creations allows for the ownership of digital assets as well as the creation of digital scarcity. These digital assets range from video, gifs and audio files to even tweets and memes - and the blockchain technology lets artists create a limited, traceable quantity of copies of their creation.
“Think of an NFT like a first edition of a book signed by the author, a print of a painting signed by the artist, or a limited-edition vinyl record signed by all the members of the band.”
- Mikel Jollett, From Airborne Toxic Event, March 16, 2021 in NBC’s Think
These digital creations started with a hype, and its bidding system and ability to create scarcity have made it possible for artists to sell their digital artwork for enormous sums of money. The most expensive NFT sold so far was sold by digital artist Beeple for $69 million. The music industry has also started exploring this new market, creating artwork + music video NFT collections for auction. Canadian artist Grimes’s collaboration with Mac Boucher sold for $5.8 million in February. A single clip from Steve Aoki’s first drop sold for $888,888 in early March.
* A preview of Steve Aoki's "Dream Catcher" NFT collection, sold on Nifty Gateway.
However, not all music-related NFT creations sell for those inaccessible prices, Kings of Leon was the first artist to release an album in the form of NFT. Their collection included a digital album that came with a physical vinyl and artwork that started selling for around $50. However, six golden tickets that guaranteed front row seats to one show in every tour the band made were auctioned as well, resulting in a first NFT drop that generated over $2 million for the band. The possibilities are endless and the technology allows for artists to get as creative as they can be.
During 2017’s crypto hype, numerous startups were founded based on blockchain technology. The idea that through blockchain technology, artists would be paid a fairer price for their music became popular. Several music streaming startups attempted to achieve this through their platform. The reality at the time was that crypto-based streaming services were based on unstable currencies that hadn’t been adopted by a significant amount of consumers - making it pointless for musicians and artists that were looking to grow their fan base.
Four years and a pandemic later, the narrative has changed - at least for cryptocurrencies. Although there are still skeptics, the popularity and acceptance of these digital, blockchain-based currencies has grown. The fact that more corporations are accepting these currencies as payment and investing significantly in this market has also strengthened the technology’s acceptance. This had a strong influence on the new NFT craze, which at the same time created a spike in blockchain’s popularity. Now might be the moment when musicians and artists finally benefit from blockchain technology.
From digital albums and concert tickets to gifs and exclusive digital material, artists can generate all kinds of unique digital tokens they can sell to fans, including - the classic concert poster. Original concert posters, just like the new digital tokens, are limited in amount. Unlike the physical version of concert posters, the digital version of these artworks can be traced an authenticated, avoiding the creation false replicas that currently undervalue original concert posters.
NFTs have been born in an era where digital ownership is finally valued. Moreover, through this technology, fans can support the artists they follow - musicians as well as other kinds of artists. There are thousands of digital artists that can collaborate with musicians to create collaborations in the form of digital art. These tokens don’t have to be limited to physical events, concert posters can be created for digitally streamed events as well. They could be sold in limited amounts bundled with special admission tickets and exclusive material before both physical and live streamed shows. Similar to buying band merchandise, buying digital traceable versions of a concert posters would have the same emotional value - knowing that we are supporting the artists we love.
The pandemic caused a halt in shows and concerts but as things slowly go back to normal, fans will be the first in line supporting these events and their favorite artists. Imagine going to a festival and buying the poster you always buy as a keepsake - but not having to carry it around. Instead, you buy a tokenized digital version of this limited artwork in a booth and carry it around in your digital wallet to later display it in a screen - without any scratches and in perfect condition.
Musicians and artists need ways to deepen and monetize their relationship with fans, and blockchain technology is finally allowing them to do so. When larger streaming platforms finally start using these technologies the possibilities of what they could create will be endless. Blockchain technology goes far beyond the idea of paying artists a fairer price per stream, it allows for fans to individually put a price on the artists they value the most and obtain all sorts of unique digital tokens in return for supporting them. Large streaming services could create their own ticketing and NFT blockchain platforms where they give artists the opportunity to engage in new, more profitable ways with their fans. Platforms that at the same time give fans unique experiences and ways to invest in the artists they love by acquiring traceable unique digital art tokens - such as digital concert posters.
sources
https://hbr.org/podcast/2021/03/the-nft-craze-and-the-future-of-spotify-and-streaming-
music)https://www.nbcnews.com/think/opinion/what-are-nfts-what-could-they-do-music-industry-artists-ncna1261205
https://www.digitalmusicnews.com/2018/05/16/blockchain-streaming-music-choon/