The conversation around crypto has revolved around financial investors and the corporate world, but have you ever considered what digital currency looks like in the music industry? Entertainment Management lecturer and founder of Parlour Gigs, Matt Walters, has co-founded Momento: "A new way for creators to connect directly to their fans, build community with their fanbase, and reward their fans and supporters for their support in ways that can’t be done in traditional social media platform." Launching in early 2022, here are his key takeaways on how this new digital landscape can help musicians and artists succeed, as well as upgrade the fan experience.
THE CRYPTOCURRENCY AGE
Firstly, there is a growing sentiment that our current monetary system is not working for most people. Many people feel they can’t get ahead financially.
Secondly, due to countless examples of corporate misbehaviour and outright criminality, there is a lack of trust in centralised institutions that handle our money (i.e. banks) and our data (e.g. big tech giants like Facebook and Google). By contrast, cryptocurrencies represent true decentralisation of money and data, thanks to the blockchain technology on which they are built.
Thirdly, cryptocurrencies are insanely volatile. This sounds like a negative, but for an investor with a high appetite for risk, volatility represents a huge opportunity to grow wealth.
Whatever the reason, the numbers speak for themselves: almost 30% of Australians own some form of crypto. That says a lot!
CONNECTING ARTISTS AND FANS
When it comes to music, current Web2 platforms like Spotify and Apple Music may be user-friendly for consumers, but they are just not attractive enough financially for the majority of artists. As a centralised intermediary between artist and fan, these platforms offer artists very little in the way of financial reward. It takes 250 streams of a song to make $1 on Spotify. They also offer limited control over how an artist interacts with their fans. There has to be a better way.
Web3 technology allows artists to build new ways of monetisation by taking back control and creativity over how they connect with their fanbase. Instead of just relying on revenue from streams, live performances or merch sales, artists can build their own experiences for their fans. It could be by issuing a song as an NFT (non-fungible token - a unique digital asset) to fans or allowing fans to support artists via social tokens.
Social tokens are a great way for fans to invest in an artist and be rewarded over time for their investment and loyalty. For instance, owning 2000 tokens from a particular artist might entitle a fan to early release tickets, unique merchandise and other experiences. Social tokens won’t just be all about experiences; they will also be the status symbols of the future.
MAKE A LIVE EVENT LAST
When it comes to live events, there are two experiences: the performance itself and your memory of that performance.
I believe future live events will be tiered in the digital realm. Right now, we have VIP and Front Row tickets. By using AR (Augmented Reality) and VR (Virtual Reality), I believe different layers of performance will be delivered to different fans at the same time. Your status as a fan (say, by holding a certain amount of social tokens) will likely unlock different types of visual and auditory experiences that integrate with the actual live performance.
When it comes to making memories, humans are collectors by nature. We collect ticket stubs, concert t-shirts and other bits and pieces as mementos. Blockchain technology just allows for these things to be digital, have verified scarcity and retain (or grow) value.
In the future, I believe you won’t tell people you were somewhere — you will show them with a credential or token that has been minted and verified on a blockchain. Our start-up, Momento, is a way for fans to easily register attendance at gigs and get a credential (digital ticket stub). Once you are registered you will be able to access all manner of unique digital assets and social tokens that the artist makes available for you.
ELEVATING ARTIST MERCH
Right now, artist merchandise is two dimensional. It’s lovely to have a vinyl record or a t-shirt. But digital NFT merchandise can be so much more. For example, AR technology represents an opportunity to create merch that fans can experience and interact with in incredibly creative (and mind-bending!) ways.
THE FUTURE OF CRYPTO IN MUSIC
The future looks incredibly exciting. Paradigm shifts occur out of necessity. There needs to be one now for the arts to continue to flourish in the digital world we find ourselves in.
Crypto represents an opportunity for artists, both financially and creatively.
Right now, digital content is free-flowing and difficult to monetise. This is changing. As an artist, imagine selling a song or piece of digital merchandise to a fan and collecting a percentage on its resale forever. Smart Contracts make this a reality right now.
We’ve heard so much about NFTs over the past year, but it has mostly focused on visual arts. I believe music will be the art form that takes NFTs mainstream. Artists like Taylor Swift have the power to shift millions of people into Web3. I believe it is a matter of time until artists at that level are selling NFT music, merchandise and experiences. The possibilities for creative experiences and connections with fans are endless.
Find out more about Momento via their white paper here and keep updated via Momento's Twitter.
