NFTs, crypto, bitcoin, and blockchain are buzzwords that seem to be frequently thrown around in today’s music industry. Whether the advent of these technologies will continue to affect the music industry remains in-question. The heavy and controversial investments in these technologies create successes, challenges, and new developments for artists.
NFTs Defined
NFT stands for Non-Fungible Tokens, which are irreplaceable digital assets that express ownership (or proof of rights) of an item. They exist on blockchain, a purely digital information system that “facilitates the process of recording transactions and tracking assets in a business network” (IBM). NFTs were introduced to music for direct-to-fan music distribution. The exclusivity that NFTs bring to the music industry is hard to recreate in traditional forms as artists can release limited edition tracks, BTS content, and first-hand experiences. By selling directly to fans, content prices may be affected as a result of lower platform fees. In theory, the value of the content sold could appreciate, benefiting fans, and royalties can be built in, benefiting artists.
Music NFT success
Some well-known music NFT success stories have brought more attention to the subject. For example, Grimes, a Canadian singer/songwriter specializing in electronica/pop, earned $6 million through her digital artwork collection which was sold as an NFT. Julian Lennon, son of John and Cynthia Lennon, received $76,000 off ‘Hey Jude’ notes, similarly sold in the new, digital format. Notably, DJ 3LAU, a well-known American DJ earned$11.7 million in an online auction selling exclusive content.
Challenges
Dealing with NFTs isn’t exactly beginner-friendly; artists need to ensure they have a good understanding of what they’re providing. Factors such as minting, listing, choosing platforms, understanding associated fees, and reinforcing security all have to be considered, and artists without tech experience could be at risk. Legal considerations could pose risks as well, including taxation and royalty conditions.
Looking ahead: Industry Impact
The NFT market hit its peak in 2021, and its value has since declined. However, in February 2025, Sony launched a new NFT collection on its blockchain platform, known as Soneium which helps protect artists. Sony’s approach helps companies cater more to superfans, as well as driving innovation in the music industry. David Greenstein, CEO of two blockchain related startups, has stated that blockchain’s potential goes beyond just buying and selling assets for profit. Greenstein plans on de-emphasizing the technological element of NFTs, pointing out that “nobody asked what the tech stack of Spotify is, they just use the product.” Geoff Osler, CEO of startup Sing, advises, “Let’s sell them records from artists they love. Show them there’s this amazing digital stuff that goes along with it, and that it’s collectible, and just leave it at that.” As NFTs and blockchain technology are slowly re-emerging, this time, the experiences of customers, in particular, have been and will continue to be a priority for developers.