Streaming has destroyed earnings for working musicians
Curated digital collectibles platform RCRDSHP, pronounced ‘record shop’, is disrupting the music industry with a new project on the Flow blockchain. The platform offers curated digital collectibles built by and for the electronic music industry, utilizing blockchain and non-fungible tokens (NFTs).
The rise in blockchain-based streaming and NFT music delivery platforms comes from more than a decade of music industry monopolies squeezing artist profits to the point of no return. Platforms like Spotify dominate the landscape, but reward artists unfairly. What’s more, they restrict access to fan data and analytics, preventing artists from potentially growing and reaching new audiences and revenue streams.
RCRDSHP is building a new solution on the Flow blockchain designed to address and improve the weaknesses of existing music distribution systems and realign incentives in favor of working musicians and fans. To start things off RCRDSHP is establishing itself as a platform for trading music and music-related collectibles.
RCRDSHP starter pack
The platform attracted over 24,500 unique active wallets in the last week, a rise of more than 13,000% week over week. On-chain metrics are essential here as users can connect to RCRDSHP using only an email address and simple KYC. Alternatively, users can connect using a Dapper or custom RCRDSHP wallet to access Web3 features.
User wallets connected to RCRDSHP lept from just over 100 on May 23 to more than 16,000 on May 24. One stimulus appears to be the release of the Dapper starter pack and a special offer entitling the first 20,000 buyers using a Dapper wallet to be credited $10 with a minimum spend of $10. Additionally, anyone who purchased any RCRDSHP pack before 9:00 a.m. PDT on May 25 received an extra NFT with exclusive benefits such as monthly DJ mixes, access to community events, and more.
Packs contain five random music collectibles from various artists and cost $10. Users rip the pack open to reveal one collectible at a time and hope for low serial numbers as these would presumably be more valuable.
Additionally, it’s not just five pieces of music. Individual NFTs can contain more than one track and additional content, such as behind-the-scenes video footage. The collectible of famous Italian house DJ Mauro Picotto includes a short video message from the main man. Another important fact is that users can get music for as little as $1 and use a credit card to make a purchase, making onboarding a breeze.
Ferry Corsten Presents What The F
Unlike other blockchain music startups, RCRDSHP has already secured some respected artists with solid fan followings to release music through the platform. It caters predominantly to electronic music, so while some readers may never have heard of these artists, some are world-renowned DJs. Acts like DJ Rap, Ferry Corsten, Todd Terry, Tidy Trax, and Crystal Waters stand out. More importantly, these acts are undoubtedly leveraging their social media followings to sell music directly to fans, which will help RCRDSHP grow.
The Ferry Corsten drop appears to have been another significant reason for the surge in active wallets this week. The platinum-selling, award-winning artist is one of the most respected electronic music producers and DJs in the dance music scene, spanning almost 30 years. His What the F drop contained three common collectibles, priced at $13, which have all sold out.
On the native secondary market, these collectible packs are already listed unopened with a floor price of $12 and a median of $90. Like NBA Top Shot in the early days, people are speculating and taking a chance by putting items up at high prices and hoping for the best. Some of these are genesis items so they could appreciate over time.
Those engaged with NBA Top Shot, another NFT collectible game created by Dapper Labs and running on the Flow blockchain, will see similarities in the challenges section. Challenges are the part of the platform that keeps people collecting and engaged.
Moreover, there’s a super high chance of getting one of the collectibles needed to start a challenge inside a starter pack which usually leads users to keep going. As mentioned, collectibles can be as cheap as $1, so it’s more about fun and possibly speculating on genesis releases, some outstanding music by a known artist, or just something you like personally.
For musicians, some of the challenges could be very rewarding. For example, a remix challenge invites producers to purchase the NFT stems of a track to build a remix. Stems are the working files that make up the track, such as the hi-hats, drums, and snares. Once a user purchases the stems, they are free to create a remix of the track and upload it for consideration and, if successful, a release on the label. Winning something like this could change the trajectory of an artist overnight.
Other challenges tap into users’ social streams to bring more awareness to the RCRDSHP platform and involve simple shares and tweets. Importantly all challenges require a purchase of some kind to begin, so in that way, the dapp is pay to play. As mentioned, items start at $1, so barriers to entry are not high for now.
Music ripe for disruption
Ever since blockchain technology arrived, ideas about how it could disrupt the music industry have persisted. However, until now, they appear to have been premature, with a low level of education amongst artists and even less ability to build and deploy smart contracts or NFT mints. As the hype around PFP and avatar collections dies down, more use cases are being explored and highlighted away from the million-dollar ape NFT sales.
Artists have always needed to connect directly with their fans and leverage their brand to sell music. Platforms like RCRDSHP can open doors for well-known artists like Ferry Corsten and Todd Terry, who can, in turn, kick the doors down for aspiring artists. Ferry Corsten is promoting his What the F drop on RCRDSHP across his social media platforms as the preferred way for fans to interact with the release.
In the wider Web3 space we see a variety of initiatives trying to disrupt the music industry. Snoop Dogg and Steve Aoki work with Gala Music, while Audius could become a Web3 replacement for Spotify. In addition, DJ 3LAU has been pioneering NFTs for a while. As well as new platforms like Corite emerging to assist artists with the technical side of things. Music artists are looking at new ways to make money, engage with their fans and expand their influence.
DappRadar meets DJ Plastician
DappRadar sat down with Dubstep pioneer DJ Plastician in a recent podcast to discuss music and blockchain. In this fascinating conversation, Plastician and I explore the misconceptions in the music industry and talk about how artists can take their first steps into the blockchain. It’s a very interesting and exciting time for the utility of NFTs, and now the hype around the financial element of the industry has calmed a little. It could be the perfect moment for platforms like RCRDSHP to make their mark.
The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research. The writer holds positions in various cryptocurrencies, including BTC, ETH, and RADAR.