Analyzing the Non-Fungible Tokens (NFT) Implementation in Digital Music Industry: A Mix Method Study

Abstract

The Digital Music Transformation has reshaped the music industry. It has three leading players with significant roles: user consumer, artist creator, and music label. The streaming service is currently the biggest revenue contributor, with 16,9 Billion USD in 2021. Sadly, the other form of digital music fell short in their revenue. But, even with the massive revenue increase from the streaming service, just a few greatly benefit from it. With the ‘pro rata’ business model, the small artist and label will only have a small cut of the subscription money the user paid. If all non-major artist fans only listen to their favorite indie artist music day and night, their subscription fee will mainly still go to the top major label and the service provider. And with the decline of other forms of music revenue made it worse. Presently, there is little to nothing about other proposed forms of digital music service offering research or the new implementation of it. There is preliminary research from Turkey that shows the advantages and disadvantages of using NFTs in the music industry, which concludes that the use of NFTs has the potential to provide significant benefits in the music industry. In this regard, the research tries to study the implementation of the NFT in the digital music service that could become an alternate or complement for digital music streaming service. The research will use the mixed method to capture and determine whether the NFT implementation form in digital music does give benefits. The quantitate used the 469-participant data survey from the KereHore Facebook group, while the qualitative was performed using interviews with the three main players of digital music services. The research result shows that NFT implementation in the Perceived e-collectible has merits and benefits.