Novel Music Royalty-mechanics Through NFTs

Kings of Leon released their new album as a NFT and generated over $2m in a week. Next to the music, the NFTs came with live show perks or exclusive audiovisual art boosting fan communities and interaction.

In the last decades the music industry was traditionally dominated by few major global record labels. These companies were typically the driving force behind bringing most successful music artists into the market – in exchange for healthy returns.

A little more than 10 years ago the rise of music streaming platforms – like Spotify or Apple Music – promised to disrupt the industry and strengthen the artistic autonomy. While significant portions of revenues within the industry were shifted from labels to platforms, the revenue share for artists did not change significantly. Musicians typically only receive a fraction of a cent per music stream. Hence, it’s not a surprise that of the $42 bn revenue generated in the US alone, only 12% is paid to…