As one of the oldest entertainment industries in existence, the music industry has seen many technological developments that have broadened its use. Digitizing music means that artists can reach any audience around the world, and digital distribution gives people unlimited access to music.

With these developments in distribution came some flaws in music monetization. The way musicians make money digitally has resulted in lower media or video revenue. Artists have been forced back into generating income from offline activities such as concerts and merchandise sales as the online scene is filled with middlemen taking a piece of the pie.

“Web3 and existing platforms help us open a new chapter in the music industry.” Takayuki Suzuki, CEO of MetaTokyo, a Web3 entertainment studio, told Cointelegraph, “I had a hard time finding good music while checking out many music stores in Tokyo and sometimes abroad. It can now be accessed through live streaming.”

Web3’s new tools model gives creators the ability to develop existing audiences and transform them into a community. Relationships with fans became very important, and they were not very close to the artists in Web3.

Marcus Vestel, COO of Limewire, an NFT music marketplace that was originally a free peer-to-peer music file sharing platform, told Cointelegraph:

“The music and creative industry is definitely on the cusp of a major shift from a Web2 content-driven model to a Web3 model of content ownership. Artists are just beginning to figure out how best to use Web3 to interact with audiences.”
Among the many use cases for non-fungible tokens (NFTs), the most popular was the ability to form communities around token holders. The emergence of decentralized autonomous organizations was an experiment in the digital coordination of these communities. All of this opens potential opportunities for independent artists looking to innovate in the next iteration of the music space.

Once again, the music industry has exploded
The music industry has always been willing to try new things. Matthias Tengbla, CEO and co-founder of Corite, a blockchain-based crowdfunding music platform, told Cointelegraph: “When music videos came out in the 80s, they were completely new and people didn’t know what to do with them. These things often start slowly but they eventually become prevalent.”

Web3 platforms are at an early stage. Most cryptographic users are literate and have a basic technical understanding of how to interact on the chain. As the space evolves, Web3 music platforms can become an essential component of how labels and artists do their business and market themselves.

The opportunities offered by this technology facilitate connections between like-minded people who overcome previous barriers to forming a community. Suzuki said, “It was difficult to maintain good relationships in the industry, I constantly met and reconnected with forward-thinking people.”

These innovations are not limited to the music industry, and young talent from Web3 can open the door to new expressions and income generation. It encourages the transfer of relationships between artists, sellers, and fans to the community.

Related: Web3 creates a new genre of music based on NFT

Musical innovation gives those artists testing new technologies the opportunity to become the next big names in the next generation. This can reduce the importance of record labels to the artist’s success. Many record companies get involved by moving some of their activities up the chain and releasing NFT sets.

“There will always be a need for record companies, but I think those who cannot adapt to changing circumstances risk being left behind,” Tingblade said, adding:

“When you have a loyal group of supporters, I believe technology opens the door for you to monetize your business directly while sharing the benefits of your success with your supporters.”
NFT’s successful music drops show how Web3 can disrupt the fundraising model by allowing artists to connect with fans directly to get funding. Those artists who make an effort to interact with the community and build direct relationships with their fans will get the most out of Web3.

From the public to the community
The audience is usually understood as a one-way relationship, while the community is understood as a two-way communication between the artist and his fans. For a community to be productive, members must enrich the creative process through active listening.

Source: CoinTelegraph