One of Justin Bieber’s most most popular songs, ’Company,’ has been turned into a non-fungible token that lets holders share in royalties. Now fans of the global pop star can earn money every time the track is played, making them not just fans, but also investors in the music.
The NFT release comes as a collaboration between the track’s producer, Andreas Schuller (‘Axident’) and anotherblock, a Web3 music company dedicated to putting music on the blockchain and expanding the possibilities of artists. In the past, anotherblock has partnered with other big names in music including Rihanna, The Weeknd, David Guetta, Martin Garrix, and others.
With the latest release, there are a total of 2,000 NFTs currently available on anotherblock for the price of 0.017 ETH, or around $27. According to the agreement, holders of the NFTs will receive 1% royalty share from streaming revenue and Axident will retain the rights to the song.
Co-founder and CEO of anotherblock, Michael Traore, said that the hit song from Bieber has “immense potential” to show the world how blockchain technology can be leveraged and integrated with traditional music. He added that the collaboration demonstrates how Web3 can open new revenue streams for producers, who are often overlooked in music, as well as give fans a chance to benefit from the song’s success.
When the track ’Company’ was first released in 2015, it was ranked 53rd on the U.S. charts and hit the Top 40 in Australia. So far, the track has been streamed over 500 million times and counting. Worth noting, Justin Bieber is not officially involved in the sale of Axident’s streaming royalty rights.
The Music Industry Continues to Embrace NFTs
There are few industries with as many horror stories about artists not receiving fair compensation for their work in the music industry. Record labels, managers, and other middle men have notoriously given musicians the short end of the stick. But with NFTs and Web3 technology, things could be starting to change.
At Rarity Sniper, we’ve reported on several musicians embracing Web3 to connect directly with their fans and create new revenue streams that were impossible just a few years ago. From Snoop Dogg dropping NFT music videos and NFT token-gated tour access to Rihanna’s producer releasing the hit song ‘B*tch better have my money’ as an NFT, musicians are starting to understand the potential of Web3.
Here are a few of the ways Web3 technology can transform the music industry:
- Blockchain technology enables music to be stored and secured (hypothetically) forever. It also lets holders buy, sell, and trade music NFTs.
- Direct connection. Music NFTs create a direct connection between fans and artists, essentially cutting out the middle man.
- Scalability. Music NFTs can be sold to fans all around the globe.
- Proof of ownership. NFTs serve as a digital certificate of ownership, enabling musicians to retain ownership of digital files.
- Secondary sales. When music NFTs are sold on secondary marketplaces, musicians can earn from secondary sales of their work.
As NFT technology reshapes what’s possible in a myriad of sectors, the music industry looks poised to be at the forefront of the revolution. To learn more about NFTs in music, check out Rarity Sniper’s most recent deep dive — What is NFT music?