Rihanna's recent partnership with Anotherblock.io to launch an NFT collection has opened up new possibilities in the digital economy. The NFT collection entitled the holders to a share of the streaming royalties from her hit song "Bitch Better Have My Money." With the sale of 300 NFTs, Rihanna has not only created a more invested fanbase but also demonstrated a new way for artists to access liquidity without having to sell their full rights to the song or album.
Traditionally, artists have to sell their full rights to large institutions to access liquidity. However, NFTs allow artists to sell pieces of the rights to individuals while still retaining a share of the royalties. This provides a win-win situation for both the artist and the fans as the fans can be a part of the revenue generated from the song, while the artist can retain a significant portion of the royalties.
The use case of NFTs in the music industry is just the tip of the iceberg. NFT collections themselves can sell pieces of their royalties to access liquidity. For instance, if a company like Yuga Labs needed liquidity, they could issue NFTs that represent a portion of the creator royalties earned from the sales of their Bored Ape Collection. This opens up new possibilities for companies to access liquidity without having to sell equity in their business to venture capitalists.
In conclusion, Rihanna's recent NFT collection has opened up new possibilities in the digital economy. The ability to access liquidity without having to sell the full rights to a song or album has the potential to revolutionize the music industry and beyond. We can expect to see more artists and companies adopt NFTs in the future as NFT-based economies continue to evolve and mature.