NFTs and DAOs Are Changing the Music Industry
Joan Westenberg shared a view on the near future of the music industry in the context of DAO, NFTs and other crypto tools.
Australian writer and Self Studio founder Joan Westenberg prepared a short note for CoinDesk. She offered an interesting perspective on the music industry in the context of NFTs and DAOs.
According to Joan, the main problems that exist in the music industry today are the abundance of intermediaries, as well as the unfair distribution of revenues between studios and performers themselves. Thus, up to 70% of streaming revenues are received by large corporations. This situation should be qualitatively affected by crypto tools.
She notes:“NFTs open up many ways for artists to connect with their audiences on a deeper, more meaningful level and form the most vibrant of communities around them, effectively making music a more intimate human experience.”
In addition, NFTs “reintroduce scarcity back to music,” allow creators fuller control over their work “as far as it goes down the consumption chain” and receive a fairer reward for it.
DAOs are seen in the same context as an alternative form of self-organization of music communities to major labels.
Westenberg writes:“Essentially, a DAO is just a social group with a shared banking account and a procedure to make decisions together. For musicians, DAOs could function as brand makers, patrons and managers.”
The decentralized, autonomous organization format will have room for both the do-gooders of the existing industry and the listeners.
Joan concludes:“DAOs would eliminate the need for third-party intermediaries among artists, listeners and other stakeholders.”
Regarding NFTs and the future of the music industry, a similar view was presented by Saxo Bank analysts in their annual “Outrageous Predictions.” Also, the question of NFTs in the music industry was recently addressed by Aleksandra Leonenko, our regular columnist, in her column.