NFTs were the hottest craze of the 2021 crypto bull market and managed to gain widespread attention thanks to various celebrity endorsements. Along with that, it was clear that many people could see that these items could potentially be valuable in the future, especially when virtual worlds become the norm and people want to own things within them.
One of the primary uses of NFTs is to distribute creative content, with artists and musicians able to sell original works as NFTs. There’s a chance that this distribution model could affect the current market and disrupt services like Spotify.
NFTs Quickly Entered Mainstream in 2021
Crypto enthusiasts have known about NFTs for some time, but news of them also spread to the mainstream market. The online casino industry is a good way to assess if something has permeated popular culture, and the emergence of NFT-themed games highlighted that these tokens had. NFT Megaways was released during the NFT craze and aimed to capitalize on the growing interest surrounding them.
When NFTs first emerged, they had the backing of many major names as well. This helped them reach a much wider audience quickly. It was clear that musicians liked the concept of releasing music in this way, with the likes of Kings of Leon jumping on board early on. The Sex on Fire artists dropped When You See Yourself as an NFT, and gave purchasers of the album the chance to win special perks such as front row seats to future concerts.
A New Way for Artists to Distribute Music
When Kings of Leon released their 2021 record, it came out as part of the NFT Yourself collection at the same time as it dropped on streaming platforms. This was a great strategy, as it gave loyal fans a way to connect more deeply with the band and get access to added benefits that others couldn’t avail.
Back in the days before MP3s took the world by storm, listeners had to purchase singles and albums if they wanted to listen to them. NFTs could bring about a resurgence in that form of marketing, with fans potentially enjoying the fact that they have real ownership of material. If this comes with special features and extra content, it could catch on and become a hot trend in the industry.
A Potential Threat to Services Like Spotify
Spotify has taken the music industry by storm over the last decade, giving listeners access to almost any track ever recorded. However, it has made it more difficult for artists to profit from their work. Therefore, many musicians may find it preferable to sell their records as NFTs as it may allow them to make more money.
The beauty of NFTs is that smart contracts can be embedded in them as well. This means that artists would be able to receive royalties if their music was resold on secondary markets.
NFTs have already shown their potential as a new outlet for musicians to release music. This marketing strategy might not usurp established services like Spotify, but it could provide competition and please both fans and artists.