• This article introduces Royal, a platform that allows fans to invest in music royalties through NFTs.
• It highlights the challenges in the traditional music industry and the emergence of decentralized platforms like Royal.
• By reading this article, you can learn about the opportunity to support artists and earn royalties through music ownership.
What is your favorite activity to do when you are free? You draw, you cook, or you go skating, but while doing all this, you may like to hear some music. You might like to hear the music by yourself in a quiet area. Music is our need whether we are traveling, hiking, or working.
However, have you ever thought about the possibility that you can now profit from this as well? You can make an investment in your favorite artist's new songs and get ownership and with the artist, you also receive a part of the profit of the song.
But wait, how does this all work? Who gets the profit? And the main question is, why do we need this? You might be wondering so for that let us see what has been happening over the years in the music industry.
The Malfunction in the System
Ordinary investors typically find it difficult or impossible to purchase music rights in the music industry. Traditionally, five entities held ownership of the rights to music: big labels, independent labels, publishing houses, artists, and talent managers.
In the past, master ownership was very closely guarded, and artists fought for ownership of their own compositions. None of your favorite musicians own their tunes. This is due to the fact that labels typically demand complete ownership in exchange for taking a chance on you as an artist.
Then they will give you an advance and add recoupable fees on top of that. In other words, in addition to being in debt, you also have a lot of expenses to pay. And you won't turn a profit until every dime has been returned.
Your label will drop if you fail. The labels do not guard the artist. And thus, the majority of artists get dropped; you've only heard of the successful ones.
To get out of all these processes and in order to interact with fans directly, some bands (RAC, Portugal. The Man) started creating their own social tokens. Records say Kings of Leon were the first group to release an album as an NFT in March 2021.
Snoop Dogg, Eminem, and Grimes, among other musicians, entered the discourse by starting their own collections. In February 2022, Snoop Dogg acquired Death Row Records with the intention of converting it into the first NFT record label ever.
Now, we've reached a new era, as evidenced by the pillars of Web3, which include ownership, transaction transparency, and decentralized control over everything. Web3 is helping these brand-new outlets for fan-centered music to move forward.
Brands, venture capitalists, NFT marketplaces, and the newest kind of emerging catalog owner—the average music fan wishing to profit from their preferred musical genre or artist—all fall into this group.
This represents an essential shift in an industry. The music industry can use NFT technology in a variety of ways, and artists can work in a wide range of web3 positions.
For all this, Royal provides a safe and easy platform. Fans could buy and trade tokenized ownership of songs on a music portal built on NFT that Royal has created. Tokens that represent a portion of the streaming rights to the song, plus bonuses, are offered for sale on its market.
As a result, the record claims, fans can get royalties alongside the artist. The percentage of the music that should be made available for purchase, as well as any additional bonuses or rewards for fans, are decisions made by the artists.
The song is tokenized using Royal, and fans can purchase the token to collect their portion of the royalties as they build up, with payout times varying by the artist. The owner of a Music NFT on Royal is also granted permission to utilize digital art for non-commercial purposes.
There are no payments or royalties from the sync license associated with this, nor does it affect the artists' publishing, songwriting, or mechanical royalties. There are various token types available, including gold and platinum, and fans receive benefits based on their purchases.
When the world offered him power and opportunity through technology, the founder Jason Blau, who is also a DJ known as 3LAU, chose to become a full-time music tech and achieve his ambition.
Jason Blau had this dream of including the concept of "collective ownership" in the music industry for seven years. According to him,
"I wanted to develop a solution that truly realized my idea for how Web3 music could integrate in the future, which was to have fans collaborate with their favorite musicians by purchasing a piece of their music."
Blau primarily targets web3 natives, but he also addresses the fundamental issue of people not understanding how to work with NFTs and the full concept of cryptocurrency.
As a result, he offers the option for people to deposit USD from their wallets and have the wallet generated for them; they are never required to use Ethereum if they do not wish to. How convenient !!!
As one of the first users, Daniel Love, who now owns maximum tokens, says,
"I used to own a production company; you learn very quickly how hard it is for small artists to make it in the music industry without having to give up ownership to a record label at some point. If I'm really happy with the relationship I have with the artist, I'm going to keep supporting them by going to shows and buying their merch, because I want them to make it. I'm helping pioneer change in the music industry."
Similarly, you can support your favorite artists as they continue to gain popularity around the world and get your profit.
Along with Andreessen Horowitz, Coinbase Ventures, and Paradigm, some well-known figures in blockchain finance are investors in Royal. The Chainsmokers, Nas, Logic, and Kygo, among other musicians, decided to support the project in the latest round, giving it some cachet from the celebrity domain.
Electronic duo and one of the investors, The Chainsmokers, said in a joint statement,
"We believe blockchain technology has the ability to transform music ownership the same way the internet has transformed the way music is listened to. At the dawn of Web3, Royal's model of modernizing the way we collect and share music made perfect sense to us as musicians and investors—we had to get involved."
It is basically a team of around 45 workers. Along with the $16 million seed round it completed in August, Royal revealed that it had raised an additional $55 million. Royal has given out over $155k in royalties to collectors and supported artists in raising over $2.5 million.
In addition to pulling bid and buy history from OpenSea, the leading NFT marketplace overall, the Royal marketplace's interface also compiles streaming data from Spotify, Apple Music, Amazon Prime Music, Tidal, and SoundCloud Premium. Over 9,200 NFT collectors have received over $100,000 in royalties from Royal's partnered artists since the company's start.
The privilege of owning music rights has usually been reserved for record companies, private equity firms, hedge funds, and wealthy individuals with strong connections.
Anyone can now own music and receive royalties for the first time. Therefore, let's make this work and support our favorite artists while we have this safe opportunity to do so and be a part of their journey.
Because people, Taylor Swift once said,
"I am not afraid
Singing, long live all the
Mountains we moved,
One day, we will be
Edited by Shruti Thapa