Musical NFTs a powerful tool to transform an audience into a community

Music artists have the opportunity to develop closer relationships with their fans through the use of NFTs.

As one of the oldest industries in entertainment, the music industry has seen many technological advancements that have led to widespread adoption. The digitization of music meant artists could reach any audience around the world, and digital distribution gave people unlimited access to music.

These advancements in distribution have led to some drawbacks in music monetization. The way musicians make money in a digital format has squeezed margins from media or video revenue. Artists have been forced to generate income from offline activities such as concerts and the sale of merchandise, as the online landscape has been filled with middlemen taking a slice of the pie.

"Web3 and existing platforms are helping us open a new chapter in the music industry." Takayuki Suzuki, CEO of MetaTokyo – Web3 entertainment Studio – told Cointelegraph: “It was hard to find good music for me, checking many record stores in Tokyo and sometimes overseas. Now it's very accessible via streaming."

A new paradigm of Web3 tools empowers creators to grow an existing audience and turn it into a community. Fan relations have become crucial and they have never been so close with Web3 artists.

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

"The music and creator industry is certainly on the verge of a dramatic shift from a Web2 model focused on content consumption to a Web3 model focused on content ownership. Artists are just getting started find the best way to use Web3 to interact with their audience."

Among the many use cases for