Blockchain technology has come to stay, and its influence is currently being felt in almost all aspects of our lives, including the music industry. The ingenuity being showcased by innovators has particularly made blockchain an indispensable resource to artists, as this technology reduces the barriers to entry for new artists, most of whom do not have what it takes to showcase their work to big record labels.
The tokenization characteristics of blockchain technology have made it possible for artists to get a fair share of the revenue that comes from their work through royalty payments. While this push is arguably sustainable and has been proven to work, there is still the funding challenge that users must overcome to get their works out. While record labels have solutions to this challenge in the traditional music industry, blockchain innovators have found a way around this through “Fan Funding.”
Fan Funding through the Lens of Corite
The concept of Fan Funding is a simple one and when looked through the Corite platform, it becomes quite easy to explain. Through the Corite platform, which recently secured $6.2 million in funding earlier this month, artists can create a music campaign and invite their fans to provide the support they need. The Corite platform works as a bridge that connects music artists to fans.
The fans commit their financial resources to back the artists and join the campaign such that when the particular music album turns out successful, the rewards are shared between the artists and their supportive fans. The Corite platform helps conduct these transactions seamlessly, gradually growing as a hub for creative artists and fans who appreciate their work.
CryptoMarketsBeat spoke to Mattias Tengblad, CEO at Corite, an expert in the blockchain ecosystem to get more insights about the growing trend in fan funding, and the Play-2-Earn ecosystem respectively. According to him, fan funding is a new offshoot that has come to complement the underlying crowdfunding campaigns.
“Now artists don’t only have to rely only on merchandise or concert ticket sales: instead, they share a percentage of their future profits in return for the support of their active community,” Mattias said, adding that, “this model works like a charm for both prominent artists with a massive following, and those just starting out with the support of friends and family. With their idol’s success as their best interest, fans become the most dedicated marketing team you could ever imagine, helping promote the music they love through the Play-to-Earn model.”
For artists to become successful, their songs must have been heard and liked by a number of individuals, most of whom may even be instrumental to the publicity the project gets. Mattias pointed out that the emerging Fan Funding initiative is highly important in securing good fan engagement to a particular project through the promised incentive attached to the projects.
“P2E boosts the fan engagement further by creating an additional layer of incentive to push the songs they’ve backed. If balanced properly, I believe this model to be very sustainable,” he added.
Redefining Non-Fungible Token Capabilities
Fan Funding a particular music project is arguably a venture that is made more functional and profitable by the integration of Non-Fungible Token (NFT) technology. Non-Fungible Tokens are digital certificates that confirm the ownership of a particular piece of art and in this case – music.
NFTs are now being adopted by music artists to tokenize their works, and with the feature of NFTs that makes it possible to take a royalty on future sales, these artists can continue to earn a sustainable income from their works for life.
Blockchain technology, through fan funding platforms like Corite and NFTs, is arguably helping artists to bring out their true potentials, bypass the drudgery involved in attempting to gain favor from record labels, and finally make a name for themselves. By riding on the support of their fans, both new and old artists can leverage emerging technologies to tap into new revenue streams that are not known a few years back.
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