Is Web3, NFTs and DAOs the future of the media and music industry?
Web3, NFTs and DAOs have been all the rage lately. Are these new technologies, especially relevant in the context of a digital society like media and music, going to be the future of content creation?
Web3 is decentralized internet. A way of exchanging value in the same way we use the internet to exchange information (web 1 and web2). The value exchanged can be achieved through micro-payments - Defi, NFTs and DAOs like Moloch - a grant-giving DAO. These are all early experiments with what could turn out to be the future of the music industry.
Let's look at how Web3, NFTs and DAOs will shape the future of media and music industries by first defining what they are then looking at some examples across these areas of how they're being used then finally look at what could happen next.
Zooming out: The current state of media and music industries are very much centralized where only a few large companies control almost everything from distribution to metadata but Web3, NFTs and DAOs will help artists get a more equitable share while also allowing them to have more control over their work by allowing them to create their own contracts that can be self-executed in an automated fashion thus creating new ways for artists to get paid for their work which means it'll be easier for independent creators who don't have any company backing them up as well as big labels who want to expand their reach even further than before. We just need time until all these technologies become mainstream enough that everyone understands why they're important now!
Web3, NFTs and DAOs are the future of media distribution
Web3 is a decentralized web that could include DAOs, non-fungible tokens (NFTs) and decentralized markets.
NFTs are unique digital assets that can be bought, sold, traded and used to pay for value or gain access. They have their own unique properties and characteristics which can be verified by the blockchain.
DAOs are decentralized autonomous organizations where no single person controls how it makes decisions on behalf of everyone else involved in its operations. There’s no power imbalance between stakeholders or any loss of control over how decisions about the organization are made.
The potential benefits of Web3 technology include:
It provides protection from censorship as everything is stored on the blockchain instead of on centralized servers
It reduces costs as you don’t need expensive equipment to store data anymore. They are distributed across all nodes on a network rather than just one server somewhere. Scale is easy without having any downtime due to hardware failure issues when using cloud storage services like AWS.
Accessing funding from grants as a media/music artist
Find out what criteria must be met before funding can be approved such as maximum/minimum amounts spent per project (less than £5 million)! Getting funding for your projects is a lot easier than you might think. There are many grants out there, and although they might not seem like much at first, they can be the difference between success and failure.
There are other options - DAOs and NFTs! Explore them first. Emerging technologies have made it easy to set up DAOs and create and sell NFTs. (Watch put for specific articles on each of these)
Using DAOs to fund music projects
The future of the music industry is in DAOs.
A DAO is an organization which has no central control but instead operates on a predetermined set of rules that are public and open to everyone.
When a project wants to raise money for its development, a group of people can decide if they want to follow these rules or not. If they do, then they have formed a DAO. And most importantly, they invested their money in it. If it turns out that these rules were broken during the project's lifetime (or if someone wants his/her money back), then all investors can vote for refunding all funds invested from day one up until now - even though this would make them lose their entire investment at once! This sounds crazy but makes sense when you think about it: It means that nobody gets any profits without working hard first.
How NFTs could change the media and music industry
NFTs are non-fungible tokens, which represent a unique asset. They are a digital representation of an item or property that can be exchanged and stored using blockchain technology. NFTs allow you to own items unique in nature, such as artworks or collectables, without the need for ownership paperwork (such as title deeds).
They contain information such as:
The item's name;
An image depicting the physical appearance of your NFT;
Its description and features;
Ownership details including who owns it and when they purchased it;
What about streaming royalties? Web2 has failed so far here
Streaming royalties are payments made by streaming services like Spotify, Apple Music and Amazon Music to artists and producers. The royalties are paid out based on the number of streams a song gets. Artists get paid per stream, whereas producers get paid based on the number of plays their tracks get.
The Web3 era will change how this works. With NFTs (non-fungible tokens) you can easily track ownership and royalties across all platforms. For instance, if you own an NFT for your music then no matter where it’s played or streamed, it belongs to you — which means that as more people begin using blockchain technology to buy music directly from creators via smart contracts ($$$), there could be even more money flowing into artists’ pockets than before!
Web3 - NFTs, DAOs and IPFS, will be capable to track these streaming events, making it possible for artists to get a fair share of their music's value in an automated way!
How artists can make money on top of their music distribution grants?
Here are some ideas to think about:
Offer fans who buy the album a discount on merchandise.
Give your fans access to behind-the-scenes content, or give them a sneak peek at what you’re working on next.
Give your most loyal fans exclusive access to tickets before they go public.
Ask for investments from your biggest fans and reward them with profit-sharing if the project is successful.
Zooming in: the good part. These tools will let musicians and actors collaborate with their fans to create and distribute content and earn a living.
With the right tools, fans can become involved in the creation and distribution of content, as well as funding.
With these new tools, you can imagine a musician who is producing his own music and creating it live on stage. He wants to distribute his work through multiple channels but doesn't want to pay the 50% commission that platforms like Spotify and Apple Music charge.
So he creates an NFT token that represents ownership of his work. He sells those tokens on OpenSea or another marketplace where people can buy them with Eth or BTC or any other cryptocurrency.
Once he has enough money from selling these tokens on OpenSea or another marketplace, he uses those funds as seed money for building out a website where people can listen/view/play along with him while he performs live during concerts around the world!
It's a win-win for all.
Blockchain technology will allow many more people to participate directly in the production and distribution of media and music. It will also allow them to earn a living doing so, as they can be paid directly by their fans for their work. This could change the way artists, filmmakers, publishers and everyone in the chain make money forever - making a much larger group of people happy than just those at the top who get most of the money now.
Welcome to the future. Is it?
This raises the question: Is Web3, NFTs and DAOs the future of the media and music industry? Our answer is yes. The advent of blockchain technology has created a new world with new opportunities for artists, musicians, creators and fans alike. It is a world where power is decentralized and value can be created by anyone. We believe that this new ecosystem will enable talent to flourish without any gatekeepers or intermediaries, which in turn could create an environment that is more conducive to creativity.
We believe that by creating a digital economy around the media industry, we can radically reshape how content creators are paid and how they interact with their fans. This is largely thanks to Web3 technologies like NFTs, DAOs and IPFS - all of which enable frictionless payments and collaboration between artists who want to produce better music together without the worry about getting paid fairly or finding someone who will listen.
We’re excited about what’s coming next!
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