Technology / 04.06.22
Top Industry Lawyer Gregor Pryor on the Rise of NFTs — Threat or Opportunity for the Music Business?
Music Week (04/04/22)
Music industry attorney Gregor Pryor, partner at Reed Smith, explores the potential impact of non-fungible tokens (NFTs) on the existing music streaming economy. "Some argue that NFTs offer a potential solution to the age-long complaint that musicians have not been adequately compensated for their work," he writes. Pryor also notes that reduced distribution costs and few limits intrinsic to traditional digital distribution create the impression that NFTs could encourage collaboration between artists. "Without the restrictions or friction derived from multiple participants in the distribution chain used by centralized streaming platforms and [digital service providers], by using NFTs artists have the ability to retain or transfer ownership rights. In the event that a subsequent owner sells an NFT, royalties can be automatically received by the creator through the record of ownership inherent in the NFT's metadata," he adds. Pryor also cites musicians using NFTs to reach out directly to their fan base, via platforms on which fans can access novel NFTs and experiences. Although he acknowledges the hypothetical value of NFTs for both artists and consumers, Pryor cautions that few users truly understand the technology, and its reliance on notoriously volatile cryptocurrencies hinders mass adoption. "Further concerns surrounding the ability to pirate NFTs coupled with calls for closer regulation suggests NFTs still have a long way to go before they are more widely embraced by the music industry at large," he concludes.
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Tags: Music , News , NFT