Music NFTs have made some impressive leaps forward this week with the launch of sound.xyz. Music XYZ is a platform that enables artists to seamlessly launch their new music in the form of an NFT. While there are other platforms like catalog work that specializes in 1/1 music NFT's sound allows artists to mint multiple. I love to experiment with products and so far I am very impressed with the design and the frictionless capabilities for both artists and listeners to participate in digital ownership of music.
So far supply has been capped at 25 total NFT's at Ξ.10 each. Unlike 1/1 music NFT's the platform creates a listening party where users can back the artist and have a chance to be permanently showcased in the audience. This is a nice touch that enhances the artist and listener connection where the artist knows who their fans are and the fans can prove that they've backed the track.
The listening party also allows the artist to share the background of the track their releasing. Artists can tell the story behind making the track as well as the inspiration for creating it. This gives fans a deeper level of understanding about how the track came about.
Owners of the NFT are then allowed to comment on the track where they have a chance to unlock a "golden egg" which is a randomly selected timestamp in the track. If the owner selects the right timestamp their NFT is upgraded to a unique 1/1 chosen by the artist.
They've launched 5 songs so far with 5 different artists all at the previously mentioned 25 NFTs at Ξ.10 each. Demand seems to be incredibly strong with listeners apeing in and selling out all of the drops in under a minute. This type of instantaneous value creation is incredible for newer artists that don't have huge followings yet.
25 NFTs x Ξ.10 = Ξ2.5 ($9,500) at the time of writing this.
$9,500/.0040 = 2,375,000 Spotify streams
$9,500 in minutes, rather than having to earn this overtime on the traditional streaming platforms like Spotify. For comparison's sake let's take a look at what streaming platforms pay per stream.
The table above highlights the different artists that have dropped on sound.xyz and compares it with their top streamed song on Spotify. Strictly by the numbers, it looks like an awesome launchpad for artists that might have a less established following (based on total streams). For example, Daniel Allen's top streamed song on Spotify is 1.6 million which accumulates to roughly $6,750. When you look at his most recent drop of "Too Close" he eclipsed these earnings in under a minute. For a more established artist like Marian Hill, these NFT sales numbers look a lot less than the streaming revenue. While the total revenue earned is a big component of this I think artists are also going into their drops with the intention of building a community around their music and NFTs through things like DAOs. While I'm sure there might be plenty of cash grabs, I think the best artist will use NFTs as a tool to build a deeper relationship with their fan base and share the upside in their music with their fans. Not only have the multiple drops sold out within seconds there have been multiple secondary sales that have passed many multiples more than the initial mint price.
I think we are still in the early innings of music NFTs and the upside for both artists and listeners is starting to become apparent thanks to platforms like sound.xyz. I'm excited to see which artist takes the leap of faith next and hopefully, I'll be able to mint one soon 🙂