So earlier this year, I wrote to you about how NFTs were evolving past simply being cute (and sometimes not so cute) artwork that was selling for insanely high prices. I showed you how MetafansNFT is using NFTs to grant its holders exclusive access to sporting events, communities, and more. I think it marks a sea change in how NFTs can provide real utility for owners. It also gives a glimpse of the potential of NFTs in the future as a way to unlock custom access and experiences.
Then in May, this happened:
A major record label artist is using NFTs to give away ownership of its new album to its biggest fans.
Probably nothing. https://t.co/hrKikJB5Vv
— Mack Collier (@MackCollier) May 13, 2022
The Chainsmokers released 5000 tokens, each one giving the owner a share of the streaming royalties for the ENTIRE album.
The Chainsmokers set aside 4,000 of the tokens for its ‘VIP’ fans, the ones that buy the most tickets, stream its songs the most, and who are the most active on its Discord channel. Another 700 tokens were given to people with a Royal account, the company facilitating the giveaway. The final 300 tokens are being held by the band to give to friends, family, and fans in the future.
Notice what The Chainsmokers did with this giveaway: 86% of the tokens are set aside for its biggest fans. I wrote about this in Think Like a Rock Star , but rock stars always focus on letting their fans do their marketing for them. Fans are leveraged as a channel to acquire new customers.
And this trend of music artists giving fans ownership of music via NFTs appears to be catching on:
— Timmy Trumpet (@TimmyTrumpet) July 5, 2022
Here, artist Timmy Trumpet is working with Royal to give away 50% of the ownership of his new single to fans.
The whole concept of NFTs feels a bit vague, nebulous and even out of touch to the average person, I believe. But when you tell someone that ownership of an NFT allows them to actually OWN a part of a song they love from an artist they love, then that resonates with them.
Artists like The Chainsmokers and Timmy Trumpet are betting that by giving away a fraction of ownership to its fans, that doing so will expand the pie and they will end up with more sales by sharing ownership with its fans.
It’s a bet they are likely to win. And this could be the start of a revolution in the music industry. What if every new album release by artists like Kanye or Drake or Ed Sheeran came with 5% ownership set aside for its fans? What happens when you give fans an ownership stake in your music, your products, your brand?
I think we are about to find out. Welcome to web3.