As a player in the music industry, what does the metaverse mean to you? Some people have shrugged off the metaverse as an irrelevant buzzword, but this couldn’t be further from the truth.
Instead, the metaverse holds great potential for the development of the music industry.
Already, a few of the key players in the music industry have announced major operations in the metaverse, paving the way for smaller players to follow. Music professionals with their ears to the ground will be familiar with the benefits offered by the metaverse — and if you’re not yet certain then keep reading.
What Is the Metaverse?
The metaverse is a 3D version of the internet and computing, creating a parallel to the physical world. Users have an avatar that can be used to interact with other avatars within the metaverse, providing an immersive virtual world through virtual reality and augmented reality headsets.
The metaverse was originally associated with the gaming industry after creating a digital space for gaming. It has since developed and been adopted by various other industries including retail, manufacturing, and, of course, the music industry.
Metaverse Benefits for the Music Industry
Various industries are taking advantage of the metaverse and the way that it builds online communities and enhances streaming opportunities. The music industry, in particular, has a lot of opportunities including the following.
Decentralization and Boosting Control for Artists
The metaverse benefits the music industry in the same way as Blockchain and cryptocurrency do, increasing community ownership. Decentralizing streaming and music in the metaverse allows fans to choose how they want to interact with the artists. At the same time, it hands over the power to artists to decide how they want to present themselves.
The decentralized, blockchain-based alternative to traditional streaming allows artists to keep more of the revenue and allows them to choose how their work is monetized.
Some of these alternate ways include virtual performances and online concerts. Another example includes music NFTs (non-fungible tokens) that allow artists to monetize their ideas and use NFT ticketing.
Opportunity for Monetization
Traditional streaming methods limit the revenue that an artist can make for their music. For example, Spotify currently pays an artist $0.003 per stream which is a low blow for upcoming artists. In the metaverse, there are more options for monetization, helping to boost revenue.
By introducing an opportunity for direct-to-artist interaction, the metaverse offers limitless possibilities for income. For example, artists can sell virtual merchandise and businesses can collaborate with the gaming industry to create a branded and themed VR and XR experience.
New Audience Base
As an evolving digital universe, the metaverse is becoming increasingly prevalent as technology evolves. The music industry can take advantage of these new opportunities and connect with existing (and potential) fans in new ways.
Some of these endeavors include virtual music festivals and live performances, creating the illusion that groups of people are enjoying the experience together. While boosting engagement, musicians are able to connect with their fans and build a lasting impression.
By creating a new type of artist-direct community, the music industry can advance its audience base.
The process of creating new, exclusive content and performances allows the music industry to recreate a bond with an online audience. Rather than watch their favorite musicians online or spend large amounts of money to attend a concert (which is geographically limiting) an audience can experience a wholesome and engaging experience in the metaverse.
By merging physical and virtual concepts, the metaverse helps artists and promoters reach their audiences on a personal level. In the process, the online community is more likely to be engaged and committed to supporting their favorite artist.
Key Players in the Music Industry Venture Into the Metaverse
Notable players in the music industry have already demonstrated their interest in the metaverse, pursuing various ventures in virtual spaces. Consider the following as an example.
- Universal Music’s Bored Ape NFT super group launches its own virtual world by selling music-unlocking “key cards”
- Spotify has launched Spotify Island, an interactive gaming island on Roblox where players can create their own beats, complete quests, and unlock exclusive merchandise
- Warner Music Group purchased a digital parcel on the Sandbox platform to build a property that serves as both a music theme park and concert venue
Powerful Collaboration and Productivity Solutions
It’s no secret that early adopters tend to gain a competitive advantage. As the metaverse becomes more prevalent in various industries, innovative players in the music industry have found ways to get involved — and reap the benefits.
At Reprtoir, we offer an all-in-one workplace that helps music industry companies manage and grow their business. Not only do we offer an in-depth software suite, but we also share regular insights on technological developments and trends in our music-centric blog.