Last year, one of my artists sold the streaming rights to a portion of their catalog for hundreds of thousands of dollars.
It was a mistake.
Why do you like the music that you like? This is the question we set out to answer in our music neuroscience research. The results show that Familiar Surprise plays a big role.
We have spent years investigating what it is about music that leads to a pleasurable dopamine response in the brain. A major effect that we have found that contributes to the formation of music preference is what we call Familiar Surprise. This effect is robust, and importantly, it can be quantitatively measured and modeled.
A new economic paradigm in music is here.
Music NFTs connect artists and collectors directly. Artists gain capital and community. Collectors earn financial rewards, showoff their fandom, and unlock unique experiences and collectibles.
But, collecting isn’t easy. How do you discover or value music NFTs? What platform is worth signing up for? Who offers the experience I want? Where are my favorite artists releasing NFTs?
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In music’s Web3 future, everyone can be an investor, backing their favorite artists and projects. This shift towards an open and democratized support system between creator and collector has the potential to change the economic structure of the music industry and the artist-fan relationship — for the better. Much better, if things unfold properly.
With each passing day, more artists are coming up with creative ways to offer non-fungible tokens (NFTs). Since June 2020, there have been 1.68M music NFTs sold, generating just under $100M in primary sale revenue (Water & Music, Jan 2022). It would take ~23.7 Billion streams to generate that same revenue for artists.