The creator economy is changing with the rise of Web3. Now independent music artists have newer ways to connect with their community, share music without a middle party's involvement, and get paid in crypto directly by their fans.
Currently, the music industry generates $43 billion in revenue, but only 12% of it goes to artists. Web3’s decentralization has made it much easier for artists to have complete control of their revenue.
Web3 streaming services and NFT marketplaces for musicians are fast gaining popularity. What are they, and what makes them better than dominant Web2 players such as Spotify and Apple Music? Let’s find out!
What is a Web3 Streaming Service?
NFT or Web3 music streaming services improve the overall experience for both artists and listeners. Unlike Web2 streaming platforms such as Apple Music and Spotify, Web3 artists have full control over their revenue. This means they don’t need to pay a cut or fees to music labels or middle parties.
By using NFTs, streamers can also create unique incentives for their fans and listeners. They can make special concert passes, or a token of authenticity, so fans can get exclusive benefits like invitations to private parties, exclusive footage of music videos, and much more.
Also, artists have full freedom over the type of music they create. Web3 is completely decentralized, and there are no barriers to creativity here.
Popular Web3 Streaming Services
Audius was launched in 2019 and is one of the very first Web3 music streaming platforms. It is a fully decentralized marketplace that gives all the power to creators and the community. Artists can build a fanbase, share the progress of their work, create, grow, and monetize songs without the need to sign with a record label. Rewards are paid in the project's $AUDIO token.
OPUS provides a great decentralized hosting, listening, and music discovery platform. It runs on the Ethereum blockchain, uses smart contracts for transactions, and gives 90% of revenue to creators.
BPM is a Discord bot that streams music and can easily be installed on any Discord server. The best part about using BPM is that it’s quite user-friendly and can be easily integrated with Discord to reach the right audience.
It seems like another music revolution is here. Web3's versatility is proving to be quite fruitful for musicians. Smart contracts are ideally suited to creator economies where income is routinely split. This takes away a lot of stress for musicians and artists who normally go through endless royalty and fee paperwork. Once again, web3 provides unique solutions that are win-win for a troubled industry.