Link to original video by Sunil Prasad

How an Artist Manager uses #NFTs to promote music // The Exchange #45

Outline Video How an Artist Manager uses #NFTs to promote music // The Exchange #45

Short Summary:

This podcast episode discusses how artist managers are leveraging NFTs and Web3 technologies to promote music and enhance the artist-fan relationship. Key points include using NFTs to sell exclusive content, offer royalty streams, create unique fan experiences (like NFT tickets), and even pre-fund album recordings. Specific technologies like Ethereum, Polygon, Tezos, OpenSea, and Zora are mentioned. The implications are a more direct and efficient way for artists to monetize their work, build stronger fan communities, and overcome challenges like copyright infringement and scalping. The episode details the process of creating and minting NFTs, as well as strategies for integrating Web3 into existing Web2 marketing plans.

Detailed Summary:

The podcast features Danielle Cutler, founder of Block Sound Management, a company specializing in artist management within the Web3 space.

Section 1: Introduction and Block Sound Management: The episode begins with a brief anecdote illustrating the immediate financial potential of NFTs in a live music setting (a DJ earning $2500 in Ethereum from a single song NFT sale during a performance). Cutler then introduces Block Sound Management, highlighting its focus on integrating Web3 strategies into artist career development.

Section 2: Cutler's Journey into Web3: Cutler describes her transition from a struggling clothing company to the music industry and Web3 in 2020. She emphasizes the pivotal role of a MIT Sloan course on blockchain and money in sparking her interest. Her initial research revealed a scarcity of real-world Web3 applications in music, motivating her to explore novel use cases. This section contrasts her approach (starting with blockchain fundamentals) with the more common path of initially investing in cryptocurrencies before exploring Web3 applications.

Section 3: NFTs and Their Applications in Music: The discussion delves into the definition of NFTs, offering simplified explanations for various audiences (layperson, students, etc.). The game-changing moment for the music industry is identified as 3LAU's NFT project, which pioneered the concept of royalty streams for NFT holders. Cutler stresses the importance of understanding the "why" behind creating an NFT for an artist, emphasizing its integration with the artist's overall Web2 strategy.

Section 4: Teaching Web3 to Music Students: Cutler shares her experience teaching a Web3 curriculum at Nimbus School of Recording Arts. She initially structured the course technically, but later revised it to prioritize use cases, starting with the South by Southwest DJ example. This shift proved more effective in engaging skeptical students.

Section 5: NFT Utility and Fan Engagement: The conversation explores various NFT utilities for musicians, including exclusive content, merchandise discounts, artist meet-and-greets, and royalty sharing (mentioning the Royal platform). The potential for NFTs to create real value and appreciation for fans is highlighted.

Section 6: Creating and Minting NFTs: The process of creating and minting NFTs is described as straightforward, emphasizing the ease of use of platforms like OpenSea. However, Cutler cautions against simply minting NFTs without a clear strategy and purpose, stressing the importance of integrating them into a broader marketing plan.

Section 7: Web2 as a Loss Leader for Web3: Cutler advocates for using Web2 strategies (like free music distribution on platforms like TikTok) to build an audience and then leveraging that reach to capture value through scarce Web3 offerings (NFTs). The example of Jack Dorsey's NFT tweet sale is discussed.

Section 8: NFTs and the Consumer Experience: The discussion shifts to the consumer side, focusing on NFT tickets as a potential solution to scalping and secondary market gouging. Cutler explores the possibilities of dynamic NFTs, offering additional value over time or unlocking rewards. The potential for sponsorships and airdrops to enhance the fan experience is also discussed.

Section 9: Choosing the Right Blockchain: Cutler explains that Ethereum is the most popular blockchain for NFTs in music, but highlights the higher gas fees. She recommends exploring layer-2 solutions like Polygon and alternative layer-1 blockchains like Tezos, emphasizing the importance of aligning the blockchain choice with the artist's brand and values (using Mads Langer's case study as an example). The episode also touches upon the challenges and volatility of some blockchains (like Solana).

Section 10: Case Studies and Current Projects: Cutler details several ongoing projects, showcasing diverse approaches to NFT integration for different artists. These include:

Section 11: Conclusion: The episode concludes with a discussion of how NFTs can address challenges in the music industry, such as copyright infringement and funding for album production. Cutler emphasizes the importance of understanding the artist's brand and values before developing a Web3 strategy. She provides her contact information for listeners interested in learning more.