Marketer by trade, interested in web 3, DIY and making the world a better place
Marketer by trade, interested in web 3, DIY and making the world a better place
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Art for money or art for passion has been an age-old struggle. Passion doesn’t fill your stomach, so in order to pursue art and make a living, artists also have to be businesspeople. They are marketers promoting their art on Instagram and TikTok, and distributors managing their creations on Spotify or YouTube. The creators that keep these platforms alive receive only a fraction of their revenue (if any).
When I was exploring alternative ways to make money from my music, I discovered how Web3 could help. I was sceptical given the 2022 Crypto crash, I assumed NFTs, Cryptocurrencies and other hot topics associated with Web3 are dying. I discovered the Gartner Hype Cycle (worth a look), which explains the natural process that new technologies go through. We have just gone passed the Peak of Inflated Expectations, on our path to actually making the technologies useful on the Plateau of Productivity.
So what is Web3? After much research, I found that it’s really just a vibe. Web3 is just a marketing term which encompasses the next wave of web technology. This includes NFTs, cryptocurrency, AI, blockchain, and the Metaverse. The first wave (Web1) was static web pages, coders coded, and viewers viewed. Think of ‘read only’ websites. In Web2, viewers can also contribute and interact. Think of Instagram and Google. Since Web2 power holders are the host, they control our data, who see our content, and how much we earn from our content.
Web3 is decentralised, which means that the power is in the hands of users and creators. In terms of earning more money, this means:
Ownership
Instagram, can use, copy, distribute and sell user content for their own commercial purposes. They can even transfer the rights of content to third parties.
In Web3, blockchain technology allows creators to establish digital copyright. Creators can tokenise (generate an identifier for a piece of data to prevent unauthorized ownership) their content as NFTs (non-fungible tokens), which use blockchain technology to demonstrate ownership.
Art for money or art for passion has been an age-old struggle. Passion doesn’t fill your stomach, so in order to pursue art and make a living, artists also have to be businesspeople. They are marketers promoting their art on Instagram and TikTok, and distributors managing their creations on Spotify or YouTube. The creators that keep these platforms alive receive only a fraction of their revenue (if any).
When I was exploring alternative ways to make money from my music, I discovered how Web3 could help. I was sceptical given the 2022 Crypto crash, I assumed NFTs, Cryptocurrencies and other hot topics associated with Web3 are dying. I discovered the Gartner Hype Cycle (worth a look), which explains the natural process that new technologies go through. We have just gone passed the Peak of Inflated Expectations, on our path to actually making the technologies useful on the Plateau of Productivity.
So what is Web3? After much research, I found that it’s really just a vibe. Web3 is just a marketing term which encompasses the next wave of web technology. This includes NFTs, cryptocurrency, AI, blockchain, and the Metaverse. The first wave (Web1) was static web pages, coders coded, and viewers viewed. Think of ‘read only’ websites. In Web2, viewers can also contribute and interact. Think of Instagram and Google. Since Web2 power holders are the host, they control our data, who see our content, and how much we earn from our content.
Web3 is decentralised, which means that the power is in the hands of users and creators. In terms of earning more money, this means:
Ownership
Instagram, can use, copy, distribute and sell user content for their own commercial purposes. They can even transfer the rights of content to third parties.
In Web3, blockchain technology allows creators to establish digital copyright. Creators can tokenise (generate an identifier for a piece of data to prevent unauthorized ownership) their content as NFTs (non-fungible tokens), which use blockchain technology to demonstrate ownership.
In addition, it is estimated that more than 20% of song streaming royalties globally may go missing, unmatched or severely delayed through this system. With Web3’s on-chain records, projects such as Imogen Heap’s “Creative Passport” aim to resolve these issues. Her 2015 song, Tiny Human was the first song ever to automatically distribute payments via a smart contract to all creatives involved.
New Monetization Opportunities
Web 2 convinced you to give away your creations for little hearts but yeah tell me how Web3 is the real scam.
I often hear people asking, “why would you buy an NFT when you could just copy and paste it from the internet?” So many reasons! You can tell the time from any watch, but a Rolex tells you something about the person wearing it. The same is true for owning NFTs. Cultural value (clout) is a signal of status, and on an innately human level, it also brings a sense of community and belonging. Fortnite is a great example because, although the skins they sell aren’t blockchain-based NFTs, it provides a great perspective of market value for purely digital assets. One set of Fortnite skin was sold for $50M in 2021. Epic Games, the creators of Fortnite launched their first NFT game, Blankos Block Party in September 2022. The gaming industry is constantly ahead of the tech curve, which is probably why its market size is now EIGHT times larger than the music industry and has been rapidly growing for the last twenty years whereas music and film have largely stood still.
What does this mean for artists and musicians? Creators can now capitalize on this idea by directly monetizing their content. With tokenized media, artists, filmmakers and musicians can offer their fans ownership over unique digital assets. Not only will fans be able to support their favourite artists by buying merchandise, but they can also now claim ownership of a video or album cover too.
True fans over fleeting eyes
The profit model of Instagram, YouTube and social media platforms alike is reliant on advertising. Advertisers pay for the viewer's attention, and the artist/ content creator is only a side character. YouTube’s goal is to keep the viewer's attention for as long as possible, so they can feed as many ads as possible. Artists and creators, therefore, have to bend to whatever YouTube/ Instagram has decided to be the most engaging content, otherwise, their creations won’t be favoured by the dreaded algorithm. How social media platforms decide to maximise their profits also changes over time, forcing creators to adapt and “hack” the newest iteration of media manipulation.
Since Web3 platforms have alternative methods of revenue generation (ie through tokens) creators will be free from pressure to optimize content for the algorithm overlords. We can concentrate on our art in whatever format we like. As a result, the creator economy will be no longer inundated by nearly identical content made to optimise their favourability in the algorithm (much to Adorno’s relief*). With there being more creativity and variations in content, users are able to better identify and invest in creators they appreciate. This will usher in opportunities to create loyal fans, more valuable than just eyeballs skimming your post on the ‘Discovery’ page. According to Kevin Kelly’s 1000 True Fans theory, this is what could help generate sustainable income for creators. The theory goes, if you have 1,000 true fans who will buy everything you create and you can create $100 worth of products a year, you can earn enough creator income ($100,000 per year in this scenario) to sustain yourself. Companies such as Kapsule Studio were formed to tap into this, they help artists make Web3 products. Of course, there are other platforms such as Joystream (akin to YouTube), which are direct to consumers.
Overall, you’ll have fans who are early adapters, fans who are laggards and everyone in between. Web3 tools aren’t for everyone, but if you want to maximise your portfolio and reach, Web3 is a great place to do that. I will leave you with a list of Web3 direct monetization platforms to look out for:
NFT Marketplaces
ArtWallStreet, Async Art, Autograph, DeFine, Ethernity, Formfunction, Fractional, Holaplex, Jambb, Kalao.io, MakersPlace, Masterpiece, Mintable, Mintdrop, OneOf, Palm, Phantom, Portion, Quantum Art, Rarible, Showtime, SuperRare, Upland, Zora
Content
Music
Afterparty, Audius, Beatoven, CurrentsFM, Dequency, Dropstar, Mint Songs, Nina, Pianity, Royal, Sonomo, Sound, SoundMint, Stage11, Trubify, Unblocked
*The German philosopher Theodore W Adorno contended that cultural industries (eg film and music) exist to enforce (and reinforce) the capitalist ethos, comparing popular culture to factories that produce standardized cultural goods eg films and music.
In addition, it is estimated that more than 20% of song streaming royalties globally may go missing, unmatched or severely delayed through this system. With Web3’s on-chain records, projects such as Imogen Heap’s “Creative Passport” aim to resolve these issues. Her 2015 song, Tiny Human was the first song ever to automatically distribute payments via a smart contract to all creatives involved.
New Monetization Opportunities
Web 2 convinced you to give away your creations for little hearts but yeah tell me how Web3 is the real scam.
I often hear people asking, “why would you buy an NFT when you could just copy and paste it from the internet?” So many reasons! You can tell the time from any watch, but a Rolex tells you something about the person wearing it. The same is true for owning NFTs. Cultural value (clout) is a signal of status, and on an innately human level, it also brings a sense of community and belonging. Fortnite is a great example because, although the skins they sell aren’t blockchain-based NFTs, it provides a great perspective of market value for purely digital assets. One set of Fortnite skin was sold for $50M in 2021. Epic Games, the creators of Fortnite launched their first NFT game, Blankos Block Party in September 2022. The gaming industry is constantly ahead of the tech curve, which is probably why its market size is now EIGHT times larger than the music industry and has been rapidly growing for the last twenty years whereas music and film have largely stood still.
What does this mean for artists and musicians? Creators can now capitalize on this idea by directly monetizing their content. With tokenized media, artists, filmmakers and musicians can offer their fans ownership over unique digital assets. Not only will fans be able to support their favourite artists by buying merchandise, but they can also now claim ownership of a video or album cover too.
True fans over fleeting eyes
The profit model of Instagram, YouTube and social media platforms alike is reliant on advertising. Advertisers pay for the viewer's attention, and the artist/ content creator is only a side character. YouTube’s goal is to keep the viewer's attention for as long as possible, so they can feed as many ads as possible. Artists and creators, therefore, have to bend to whatever YouTube/ Instagram has decided to be the most engaging content, otherwise, their creations won’t be favoured by the dreaded algorithm. How social media platforms decide to maximise their profits also changes over time, forcing creators to adapt and “hack” the newest iteration of media manipulation.
Since Web3 platforms have alternative methods of revenue generation (ie through tokens) creators will be free from pressure to optimize content for the algorithm overlords. We can concentrate on our art in whatever format we like. As a result, the creator economy will be no longer inundated by nearly identical content made to optimise their favourability in the algorithm (much to Adorno’s relief*). With there being more creativity and variations in content, users are able to better identify and invest in creators they appreciate. This will usher in opportunities to create loyal fans, more valuable than just eyeballs skimming your post on the ‘Discovery’ page. According to Kevin Kelly’s 1000 True Fans theory, this is what could help generate sustainable income for creators. The theory goes, if you have 1,000 true fans who will buy everything you create and you can create $100 worth of products a year, you can earn enough creator income ($100,000 per year in this scenario) to sustain yourself. Companies such as Kapsule Studio were formed to tap into this, they help artists make Web3 products. Of course, there are other platforms such as Joystream (akin to YouTube), which are direct to consumers.
Overall, you’ll have fans who are early adapters, fans who are laggards and everyone in between. Web3 tools aren’t for everyone, but if you want to maximise your portfolio and reach, Web3 is a great place to do that. I will leave you with a list of Web3 direct monetization platforms to look out for:
NFT Marketplaces
ArtWallStreet, Async Art, Autograph, DeFine, Ethernity, Formfunction, Fractional, Holaplex, Jambb, Kalao.io, MakersPlace, Masterpiece, Mintable, Mintdrop, OneOf, Palm, Phantom, Portion, Quantum Art, Rarible, Showtime, SuperRare, Upland, Zora
Content
Music
Afterparty, Audius, Beatoven, CurrentsFM, Dequency, Dropstar, Mint Songs, Nina, Pianity, Royal, Sonomo, Sound, SoundMint, Stage11, Trubify, Unblocked
*The German philosopher Theodore W Adorno contended that cultural industries (eg film and music) exist to enforce (and reinforce) the capitalist ethos, comparing popular culture to factories that produce standardized cultural goods eg films and music.
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