1. NFTs as tickets

This might be the most popular way to incorporate NFTs in entertainment. In this case, each NFT serves as a ticket/invitation to a certain event or club.

Pros: it’s a way to unite your community, gives a real-life utility to the NFT, allows holders to sell it on secondary market & get some profit.

Cons: it’s a widely used technique which means there’s no surprise factor in the space, prices might be too high for fans to buy on secondary market (due to speculation).

2. NFTs as a way to release music

It’s an interesting topic that seems to be raising a lot of interest in the space lately. Instead of releasing your song through a streaming platform you can mint it as an NFT and sell it on a NFT marketplace.

Pros: artist decides how much of the royalties they keep, buyers own the song & decide how they want to use it, fans can directly support their favorite artist and can earn on the song if they decide to sell it on secondary market.

Cons: artist has to deal with the distribution of the release, artist is in charge of marketing the song, passive income relies on secondary market sales

3. NFTs as merchandise

This one is simple and a self-explanatory. The artist releases NFTs (pfp, 1/1 art, unique animation + music combo, photoshoots, teasers of their new projects…) so fans can buy and collect it as they would do with tangible merchandise.

Pros: artist can release NFT merch + give it a second utility (can be a ticket to a concert, VIP experience to the holders, charity fund…), unlike traditional merch the artist can get royalties every time it’s sold on secondary market.

Cons: on its’ own it lacks utility but that doesn’t differ from traditional merch

4. NFTs as proof of royalties ownership

In this case, artist + investors each own a NFT that represents the specific % of royalties they own of a certain release. This might be our favorite usage of NFTs & we’re currently developing our project that will have this system integrated.

Pros: artist decides how many % of their release they want to sell, allows the holder of the NFT to sell their royalties on secondary market making the selling & purchasing of music royalties easier than ever, artists can easily increase the % of royalties they own (by buying from secondary market), gives the artist exposure to the web3 space but it’s not tied to it.

Cons: the holder of the NFT has to remember to claim their royalties before selling the NFT on secondary market.

This has been a quick dive in the role of NFT in the music industry. There’s many more applications to this technology and only time will show were the limits are.

This article is based on a thread we posted on our Twitter.

Official RLD links: Website, Twitter, Discord