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An in-depth research Report on NFT value of Music -- Oui Institute & Rhythm

Read this article in 30 Minutes

From the current situation of the music industry, the potential of NFT reform and the new challenges it may bring, the NFT music market is interpreted.

Foreword: & have spent 2

Overview of music Industry & NBSP; 3

1.1 Music Industry Chain & NBSP; 3

1.2 Music Streaming media & NBSP; 4

2. Industry pain points and music NFT advantage & NBSP; 6

2.1 Industry pain points & NBSP; 6

2.1.1 Rampant Piracy & NBSP; 6

2.1.2 High threshold for creators to participate & NBSP; 7

2.1.3 Complexity of value chain leads to low payment efficiency & NBSP; 7

2.1.4 There are many middlemen and the rights and interests of music creators are in a weak position & NBSP; 7

2.1.5 Difficulty in authorization of secondary music creation & NBSP; 8

2.2 NFT advantage of music & NBSP; 8

2.2.1 Industry Perspective & NBSP; 9

2.2.2 Perspective of Music Creator & NBSP; 9

2.2.3 Fan Angle & NBSP; 10

3. Overview of Ecological Projects & NBSP; 10

4. Trends and Risks & NBSP; 13

4.1 the trend & have spent 13

4.1.1NFT is the future mainstream music carrier & NBSP; 13

4.1.2 More opportunities to discover the value of niche music & NBSP; 13

4.1.3 Derive new music service mode and scene & NBSP; 13

4.2 risk & have spent 13

4.2.1 Risk of Piracy & NBSP; 13

4.2.2 Speculation risk & NBSP; 14

前言：

2021 年以来，NFT 成为 Crypto 领域的出圈热词，名人入场、知名品牌合作、NFT 蓝筹地板价的飙升以及 NFT 赛道板块轮动共同促成了它的出圈效应。目前 NFT 支持多种格式，例如视觉文件（JPG、PNG、GIF 等）、音乐文件（MP3 等）、3D 文件（GLB 等）等等，「万物皆可 NFT」所言不虚，互联网上随处可得的一幅画、一首歌、一张卡牌都可以制作成为 NFT。

在大部分 NFT 作品属于图片类格式的当下, 音乐 NFT 板块正在悄然积蓄力量。从摇滚乐队 Linkin Park 主唱 Mike Shinoda 通过 NFT 拍卖筹集 30,000 美元，到音乐家 PelleK 发布第一张 NFT 音乐专辑，两个小时的时间内迅速售罄销售额达 160,000 美元；从国内首支电子音乐 NFT《WHISPER》到腾讯音乐推出的首个虚拟音乐嘉年华 TMELAND，迅速发展的 NFT 也在不断促使产业内部形式多样化。目前，欧易 NFT 市场音乐板块已经收录了数十个 NFT 音乐作品。

（欧易 NFT 市场 NFT 分类合集）

据 Digitalmusicnews 数据显示，2021 年 1 月，NFT 音乐市场销售额达 90 万美元，2 月销售额达到 2200 万美元，同比增长 2344%, 并于 3 月继续上涨至 2600 万美元。经过一年的发展，业内资本也正在将目光瞄准这个领域，加码押注 NFT 音乐赛道，此前 NFT 音乐平台 OneOf 以 6300 万美元完成融资，四月以来，音乐 NFT 平台 SoundMint、 OurSong 、Inflow 也都进行了金额不菲的融资。

What will the combination of NFT and music bring? Is NFT the future of the music industry? Based on this, this article will interpret the NFT music market for you from the current market situation of the music industry, the potential of NFT reform and the new challenges it may bring.

Overview of the music industry

1.1 音乐产业链

音乐是一个庞大的产业，拥有不亚于游戏体量的 IP 方和用户群体。音乐产业链主要由内容提供商（音乐人、唱片公司等）、服务提供商（分发渠道、演出经纪等）、消费者三部分组成，其中间商多、价值链复杂。

产业的运行过程表现为：唱片公司组织词曲作者、歌手和专业制作团队打造出音乐产品，通过三条子产业链进行变现，包括：

唱片产业链：音乐作品被制作成唱片母带、CD 等实体产品给音像发行商、或直接制作成数字音乐版本出售给数字音乐发行商，将音乐作品传递给消费者。

版权产业链：唱片公司将音乐作品授权给电视台、广播等媒体渠道播出，通过收取版税并与音乐人分成实现盈利。

演出产业链：唱片公司与经纪公司合作为歌手举办演唱会、拍摄广告等实现收入。

1.2 音乐流媒体

技术进步推动音乐分发渠道不断发生变革，移动互联网时代下，数字音乐逐步替代实体唱片成为最重要的音乐载体形式，Apple Music、Spotify 等流媒体服务商登上历史舞台，流媒体已经成为最主要的音乐分发渠道。根据 IFPI 报告，2020 年数字音乐占全球音乐收入的份额最大，仅流媒体服务就占整个行业总收入的 62%，约 134 亿美元。

新的产业链主要涉及音乐内容制作、音乐版权、运营传播等环节。它改变了音乐的消费方式，让听众更广泛地接触到音乐，但也在艺术家和粉丝之间增加了一个新的中介层级——流媒体平台，具体有数字音乐平台、在线 K 歌平台、音乐直播平台、短视频平台以及其他线上分发平台等。

（图片来源于千际投行）

这些音乐流媒体平台逐步形成以下几种商业模式：

Advertising payment model:作为传统的盈利模式，广告付费是一种依靠流量变现的商业模式。在线音乐平台依托于庞大的用户群体，当用户享受在线音乐服务的同时，也为其推送数量在可接受范围内的广告。根据相应的曝光数、点击数以及成交金额等数据指标向广告商收取服务费用。

Value-added services for members:由于依托传统的广告付费模式带来的收入有限，各大在线音乐平台由免费提供音乐服务逐渐转变成收取部分音乐服务费用。目前包括两类会员增值服务，一类是普通会员，可以享受音乐的在线播放以及多首无损音乐的下载；另一类是超级会员，除了享受普通会员的所有权利外，还有免广告、商城折扣、票务特权、个性界面设置等服务。

Legal paid download:正版付费下载是针对单独特定音乐定制内容服务，目前包括单曲下载和整张专辑下载两种。单曲下载指用户通过向服务商支付单一数字音乐价格即可获得无损音质的下载权限，同理整张转寄下载指用户通过向服务商支付整张数字音乐专辑的价格即可获得无损音质的下载权限。

二、行业痛点及音乐 NFT 优势

2.1 行业痛点

音乐流媒体在很大程度上改变了音乐的消费方式，使人们可以更广泛更便捷地听到各类音乐作品。但由于中间商多、价值链复杂、版权数据不透明，导致盗版猖獗、音乐创作者的权益难以维护、音乐二次创作使用授权难、价值链复杂导致支付效率低下等问题，成为阻碍音乐产业发展的重要因素。

2.1.1 Rampant piracy

The marginal cost of digital music is close to zero, and the low cost of piracy and illegality makes it rampant and hard to stop. The annual income of music copyright holders in China only accounts for about 2% of the output value of the whole industry, which is 70% and 90% respectively in many developed countries, such as Europe and America, Japan and South Korea. That said, most of the music we've heard over the past decade has probably been pirated.

2.1.2 High participation threshold for creators

The general process of the production of a song can be divided into pre-production, mid-production and post-production: the pre-production mainly involves the preparation of lyrics and music, budget, time line planning and coordination of participants; In the middle stage, I arranged, recorded, sang, edited and mixed the music. Later master recording, copy preparation, promotion and production, official release. Therefore, the creation and production process of a song will involve the entire music industry chain, and each step is inextricably linked, requiring large capital investment in the early stage. In addition, music communication and late publicity also need a lot of manpower, material resources and financial resources, without the help of music companies, even if some musicians have good works, it is difficult to spread. This is where music creators now have to rely on companies and streaming platforms.

2.1.3 Complexity of value chain leads to low efficiency of payment

The composition, arrangement, production and performance of a song are usually completed by different musicians. The ownership of copyright and the way of profit distribution become more complicated due to various factors such as different roles, contributions, contracts and regulations. The payment of remuneration is extremely inefficient and often causes confusion and controversy.

2.1.4 With many middlemen, the rights and interests of music creators are in a weak position

Revenue from music streaming platforms is split between the platforms and rights holders such as music companies, while creators receive little in real terms. Streaming platforms, which rely on huge user traffic, get the lion's share of the revenue, with only a small share going to music creators' companies. Most music creators have little right to speak in front of the company, so the income distribution in this link is also in a serious unequal state. Most music creators finally receive little remuneration, and it is difficult to protect the rights and interests of music creators, and it is difficult for non-top singers and small musicians to benefit from it.

2.1.5 It is difficult to authorize secondary music creation

In the coming years, UGC and music consumption in segments such as social media, online concerts, fan economies and games will be the long-term drivers of growth in the recorded music market, with short videos being the most promising. With the rise of short video, the music industry has changed from simple audio-visual to "secondary creation" using music such as short video and live broadcast. According to data from relevant research institutions, the short video market with music as soundtrack has exceeded 100 billion yuan in 2020, while the figure in the e-commerce live streaming market has reached 2.85 trillion yuan.

However, the phenomenon of music infringement can be seen everywhere. Even if we buy the album and pay the VIP membership fee, we only get the right to enjoy the music, but do not have the right to use the music for second creation. In addition, although they know that they cannot use music freely in the second creation, they are hard to know where to obtain the authorization at a reasonable price, and the complexity and opacity of the acquisition path of music copyright make it difficult to eliminate the phenomenon of infringement.

2.2 音乐 NFT 优势

对于音乐产业来说，NFT 通过将特定的数字资产或物理资产作为数字单位，并创建一系列可识别的数据块储存在区块链上，形成可溯源、不可篡改的通证。不仅可以解决诸多音乐行业的痛点重塑音乐产业分配模式，也可以借由 NFT 的技术逻辑构建全新的商业模式。而基于区块链和智能合约的音乐 NFT，可以为音乐行业、音乐创作者、粉丝提供更为透明、高效的价值分配系统。

2.2.1 Industry perspective

1) Simplify the copyright transaction process: the complexity and opacity of the acquisition path of music copyright make it difficult to eliminate the phenomenon of copyright infringement. Music copyright is carried in the form of NFT, which can realize fast price change, will greatly simplify the transaction process of music copyright in reality, and also give ordinary people the opportunity to participate in copyright investment.

2) Music secondary creation and use authorization can be realized: It is necessary to obtain authorization to use music in secondary creation, but currently web2 platform users do not know where to obtain authorization at a reasonable price. In addition to the complete copyright, NFT can also explore the right of use and adaptation to NFT, and quickly realize the authorization of second creation and use of music through market transaction.

2.2.2 Perspective of music creator

1) Pre-revenue: the traditional music release mode is to make preliminary preparations and obtain sales revenue after the completion of works. Music creators with a small number of fans face a high threshold of cold start-up. Now music creators can raise money through the sale of NFT and the support of their fans. Furthermore, music creators can raise production funds and earn profits from die-hard fans and copyright investors who are interested in their works by assigning part of their music Copyrights to NFT.

2) Reshaping the distribution model of the music industry: NFT enables music creators and fans to establish a direct value connection, so as to reduce their dependence on companies and streaming media platforms, gain more say in the process of work distribution and gain more shares in the distribution of profits. It can even become a "personal economy" that can realize independent and circular transactions with fans within the chain. The overall income is redistributed by the emergence of NFT, so that the middleman takes less income and creators and fans can directly reap more income.

3) Resale sharing: after the previous music copyright is sold, the author no longer has the ownership and can not get the profit from the value increase of the second sale. Music creators can set the NFT resale share ratio at the time the NFT is cast.

2.2.3 Fan perspective

1) Reconstruct the relationship between fans and idols: Music NFT can simplify the copyright transaction process, so that fans can establish a deeper connection with their idols and "invest" in artists' careers by investing in their idols' NFT.

2) NFT empowers fans' rights and interests: NFT can be used as a voucher to trace fans' loyalty and become an important tool for idols to reward and attract fans. For example, have NFT corresponding "collection", "identity tag", "production material", "tickets", "financial rights and interests voucher" and other functions.

三、生态项目概览

Audius:Audius 是一个音乐媒体平台，允许用户在平台上展示他们 Solana 和以太坊的 NFT，曾获得苹果应用商店官方推荐。目前，Audius 合作的艺术家包括 deadmau5、Rezz、3LAU、MR.CAR 和 The Stafford Brothers 等。去年 9 月，继获得 Coinbase Ventures 等 860 万美元融资后，Audius 再次斩获 500 万美元融资，投资者包括 Katy Perry、The Chainsmokers、Nas、Jason Derulo、Pusha T 和索尼音乐前 CEO Martin Bandier 等。

One Of:One Of 是一个基于 Tezos 区块链的音乐数字收藏品平台，不向艺术家收取铸币费，允许他们发行低价甚至免费的 NFT，且除支持法币外还将支持加密货币和稳定币，旨在创造一种环境可持续、对艺术家和粉丝友好的体验。去年 5 月，One Of 完成资深风险投资家 Bill Tai 和 Nima Capital 的 Suna Said 领投的 6300 万美元融资。不仅如此，one of 还与格莱美奖签署为期 3 年协议，将为第 64 届、第 65 届和第 66 届格莱美奖发行 NFT，收益将捐给学院的奖学金基金。

EulerBeats:作为基于 Polygon 的 NFT 音乐和艺术项目，EulerBeats 是以 18 世纪知名数学家莱昂哈德·欧拉 (Leonhard Euler) 命名，以算法生成的艺术和音频为特色。EulerBeats 已发行 Genesis 和 Enigma 两个系列音乐作品，每个系列有 27 件原碟。

ROCKI:ROCKI 是 BNBChain 上首个音乐 NFT 和音乐流媒体，推出了 ERC721 版税收入权和 ERC1155 聆听权权音乐这两种独特的音乐 NFT。ROCKI 允许代币持有者为喜欢的音乐人质押投票，投票人和音乐人均可获得质押奖励。此前，ROCKI 与 Binance、1001 Tracklists 合作启动 100 万美元艺术家救济基金。

Royal:Royal 是由艺术家 3LAU 和 JD Ross 推出的类 NFT 音乐投资平台，艺术家可使用该平台来出售他们的歌曲，粉丝则可以从中购买歌曲的所有权，并从其购买的歌曲中获得版税收入。2021 年 11 月，Royal 完成了 5500 万美元融资，参投机构包括 A16Z、Coinbase Ventures、Paradigm、The Chainsmokers、Nas 和 Logic&Kygo 等。

Opulous:Opulous is a financing, lending and trading platform for Music rights NFT, founded by Lee Parsons, who also founded Ditto Music, one of the world's largest digital distribution and record companies. On Opulous, users who buy NFT music are given monthly royalties for that music. Not only that, but music creators can also apply for loans from their music and royalties. In late 2021, Opulous announced a partnership with Japanese communications giant LINE to develop NFT products together. Opulous also raised $6.5 million in funding that year.

Trends and risks

4.1 the trend

4.1.1NFT is the mainstream music carrier in the future

Music NFT can solve many pain points in the music industry, but also reshape the distribution model of the music industry, the industry, creators, fans have obvious benefits, will be the carrier of mainstream music in the future.

4.1.2 There are more opportunities to discover the value of niche music

Music NFT, through copyright empowerment, can give ordinary people the opportunity to participate in early copyright investment, which will provide more niche music creators with value discovery opportunities, and is expected to contribute to the prosperity and development of the music field.

4.1.3 Derive new music service modes and scenarios

Compared with traditional digital music, which only has "value of listening to music", NFT music can be programmed, traceable, combined and tradable to open up new service categories and new scenes that do not exist at present, stimulate product and service innovation at a broader level, and directly improve the output value of the whole industry.

4.2 risk

The economic model and promoting the development of cultural and creative industry show certain potential value, but it brings the convenience of circulation and speculation risks such as hoarding and trading.

4.2.1 Risk of piracy

With the rapid development of NFT market, a new type of piracy problem appears again. NFT is based on blockchain technology features, music works can be stored through digital encryption technology. However, this can only ensure that part of the chain can be traced and cannot be tampered with, in the chain and the corresponding works on the chain link, also face the risk of piracy. For example, someone steals other people's works and directories to generate NFT without the permission of the author. At present, THE NFT trading platform cannot completely solve this problem.

4.2.2 Speculation risk

NFT as an innovative application of blockchain technology in the rich digital