One of the largest and most powerful businesses in the world is the music business. In 2020, music that was made brought in about $23.1 billion for the music business.
Even though the music business is getting bigger, licensing has always been a problem. Over the years, there have been more and more well-known events. Regulators have tried to find answers, but haven’t been able to.
But when NFTs were put into place in 2015, the answer was finally there. Then, what are NFTs, and how might they help settle royalty disputes over music? Keep on reading.
Music tokens that can’t be traded
Non-Fungible Tokens (NFTs) are digital certificates that show ownership of a certain asset. They can’t be traded for each other, so they can’t be used in place of each other. Almost everything about each is different from the other. As soon as an NFT is added to the chain, the record can never be changed again. Also, it cannot be replaced in any way.
NFTs have been getting more attention lately, especially in the music and arts industries. Several music fans say that they can solve problems in the music industry that have to do with royalties. Here are some viable options.
Artists own their songs and get royalties from them.
The most important benefit of NFTs in music is that they give you control. One of the biggest problems in the music business today is that artists can’t control how their music gets out there. In the music business, there are two main types of copyright. That means;
The most well-known type of music copyright is called “compositional rights.” This copyright is about the person who wrote the lyrics, melody, or rhythm.
In the second type of copyright, music recordings are the main focus. It belongs to the record label and is used to show who did the work that was recorded.
Most of the time, the publisher collects the royalties and splits them between the record label and the songwriters. The author and the person who made the melody are both parts of the composer. Each of these people gets a share of the royalties. Even though the artist is an important part of music, their work is sometimes overlooked. So, they only get a very small amount of the royalties.
But when NFTs take over the music industry, royalties will be split in a very different way. There will be more ways for musicians to get their songs out there and make money right away. Artists will work with the people who make NFT and will be paid royalties for their work.
Due to the benefits of the NFT, many musicians have made NFT music. This year, King of Leon put out the first NFT record to make more than $2 million. NFTs give power to the artist.
Change the way royalty payments can be tracked and seen.
Also, NFT will change the way that royalty payments can be tracked. It has been hard to track down royalties in the music business. Since the artist can’t keep track of the money, it’s not a direct benefit.
A recent MLC report from February 2021 says that the network has more than $424 million in unmatched royalties. Digital Service Providers (DSPs) can’t find the artists, so these methods are the only ones that work.
Still, the NFT market will offer several ways to make it easier to track things. Blockchains like Ethereum, Cardano, and BSC NFTs are stored in a permanent database. Using blockchain technology, they record who owns a certain piece of music.
It also keeps track of the necessary royalty splits at the time the NFT is made. So, blockchain technology and non-fungible tokens help artists and creators keep track of everything, including how much money they get paid. Everyone who has a stake in music copyrights would benefit from being honest.
rights to own part of something
We’ve already talked about how composition and recording are the two most important copyrights in music. But there are many people involved in making music, including the artist. The problem with the current system is that it is hard to own a part of the music rights.
NFTs make fractional ownership possible. They could be split up. After every split, each NFT has different rights and abilities than the others. Each NFT will help bring money in its special way. Also, anyone can own a piece of an NFT and get a share of the royalties based on how much they own. The ability of NFTs to offer partial and partial ownership may make conflicts less likely.
How platforms that use NFT could help musicians
Even though there are already a few NFT systems, it seems that very few of them have solved the most common problems that music artists face. But the music industry is still open to new players who will figure out how to help artists run their businesses in the best way. One platform like this is the Band Royalty project. It uses its native token royalty (RYLT) and Band NFTs to provide governance and efficiency that the network badly needs.
The public will soon be able to buy tokens from this project. Music fans and investors can invest in music royalties and make money from them. You will be able to listen to songs by Jay Z, Beyonce, and many others that are of high quality.
Even though license disputes have been around for a long time in the music business, NFTs will help settle them. These assets are pieces of paper that show who owns a physical thing. In the art and music industries, the idea spread quickly.
Artists who use NFTs to release their songs will get a bigger share of the rewards. You will be able to manage and keep track of royalties that come in from NFT.
In the music business, another benefit of NFTs is that even fans can buy a royalty share. When a fan buys some NFTs, they get a share of the profits. The benefits of NFTs in music are being looked into right now. But this new technology will change how music is made.