The main objective of this paper is to outline the psychological aspects of trading in the music NFT (non-fungible tokens) ecosystem, with special emphasis on the psychological background of buying NFTs. Since the most important feature of NFTs is the acquisition of ownership enabled by technological solutions, we assume that each purchase of a token does not only imply an economic exchange of ownership, but also the activation of psychological ownership. Having in mind that psychological ownership is a relative category that depends, among other factors, on the nature of the target to which it is attached, our investigation is conceptual rather than empirical. By connecting the already identified cores of psychological ownership to the characteristics of some of the most prominent music NFT drops, we aim to theoretically define general dimensions of psychological ownership through which emotional and social connections to music NFTs as objects of ownership emerge. We conclude that the NFT market reinforces psychological ownership by providing consumers valuable outcomes. In terms of music NFTs, the concept of psychological ownership can be explained by several intertwined dimensions that create emotional and social connections and motivate users to purchase these digital goods. These include a sense of unique possession, identity and self-expression, a sense of belonging to a community, and investment opportunities. The NFT drops discussed illustrate how leveraging different aspects of psychological ownership can transform a music release into a special experience that reshapes the relationship between fans and musicians. Examining fansâ purchases of music NFTs from a psychological perspective can help musicians better understand blockchain usersâ behaviour towards music, which is essential for developing NFTs into a sustainable digital format for music revenue.
This paper examines the hesitancy of Australian musicians towards embracing the music non-fungible token (NFT) as a commodity. Drawing on the concepts of cultural autonomy and the digital disruptive sublime, the study argues that the overtly economic nature of NFTs challenges the ideology of creative independence in the hegemonic âindieâ music scene. Through interviews with nine Australian musicians who participated in our project, the research finds a cautious curiosity towards the technology, with technical barriers and a perceived cultural disconnect between the NFT âcommunityâ and traditional music scenes contributing to hesitation. The paper concludes that attempts to engineer disruption in the music industry through web3/blockchain technology have thus far failed to attract sustained interest from musicians, as the cultural norms and practices associated with NFTs do not align with the values of the existing indie music ecosystem. The findings highlight the difficulties in planning and engineering cultural change within the music industry.
Ian Rogers, Dave Carter, Benjamin A. Morgan, Anna Edgington
Introduction In a 2019 report for the International Journal of Communication, Baym et al. positioned distributed blockchain ledger technology, and what would subsequently be referred to as Web3, as a convening technology. Riffing off Barnett, a convening technology âinitiates and serves as the focus of a conversation that can address issues far beyond what it may ultimately be able to address itselfâ (403). The case studies for the Baym et al. researchâearly, aspirant projects applying the blockchain concept to music publishing and distributionâare described in the piece as speculations or provocations concerning musicâs commercial and social future. What is convened in this era (pre-2017 blockchain music discourse and practice) is the potential for change: a type of widespread, broadly discussed, reimagination of the 21st-century music industries, productive precisely because near-future applications suggest the realisation of what Baym et al. call dreams. In this article, we aim to examine the Web3 music field as it lies some years later. Taking the latter half of 2021 as our subject, we present a survey of where music then resided within Web3, focussing on how the dreams of Baym et al. have morphed and evolved, and materialised and declined, in the intervening years. By investigating the discourse and functionality of 2021âs current crop of music NFTsâjust one thread of music Web3âs far-reaching aspiration, but a potent and accessible manifestation nonethelessâwe can make a detailed analysis of concept-led application. Volatility remains throughout the broader sector, and all of the projects listed here could be read as conditionally short-term and untested, but what they represent is a series of clearly evolved case studies of the dream, rich precisely because of what is assumed and disregarded. WTF Is an NFT? Non-fungible tokens inscribe indelible, unique ledger entries on a blockchain, detailing ownership of, or rights associated with, assets that exist off-chain. Many NFTs take the form of an ERC-721 smart-contract that functions as an indivisible token on the Ethereum blockchain. Although all ERC-721 tokens are NFTs, the inverse is not true. Similar standards exist on other blockchains, and bridges allow these tokens to be created on alternative networks such as Polygon, Solana, WAX, Cardano and Tezos. The creation (minting) and transfer of ownership on the Ethereum networkâby far the dominant chainâcomes with a significant and volatile transaction cost, by way of gas fees. Thus, even a âfreeâ transaction on the main NFT network requires a currency and time investment that far outweighs the everyday routines of fiat exchange. On a technical level, the original proposal for the ERC-721 standard refers to NFTs as deeds intended to represent ownership of digital and physical assets like houses, virtual collectibles, and negative value assets such as loans (Entriken et al.). The details of these assets can be encoded as metadata, such as the name and description of the asset including a URI that typically points to either a file somewhere on the Internet or a file hosted via IPFS, a decentralised peer-to-peer hosting network. As noted in the standard, while the data inscribed on-chain are immutable, the asset being referred to is not. Similarly, while each NFT is unique, multiple NFTs could, in theory, point to a single asset. In this respect ERC-721 tokens are different from cryptocurrencies and other tokens like stable-coins in that their value is often contingent on their accurate and ongoing association with assets outside of the blockchain on which they are traded. Further complicating matters, it is often unclear if and how NFTs confer ownership of digital assets with respect to legislative or common law. NFTs rarely include any information relating to licencing or rights transfer, and high-profile NFTs such as Bored Ape Yacht Club appear to be governed by licencing terms held off-chain (Bored Ape Yacht Club). Finally, while it is possible to inscribe any kind of data, including audio, into an NFT, the ERC-721 standard and the underpinning blockchains were not designed to host multimedia content. At the time of writing, storing even a low-bandwidth stereo audio file on the ethereum network appears cost-prohibitive. This presents a challenge for how music NFTs distinguish themselves in a marketplace dominated by visual works. The following sections of this article are divided into what we consider to be the general use cases for NFTs within music in 2021. Weâve designated three overlapping cases: audience investment, music ownership, and audience and business services. Audience Investment Significant discourse around NFTs focusses on digital collectibles and artwork that are conceptually, but not functionally, unique. Huge amounts of money have changed hands for specificâoften celebrity brand-ledâcreations, resulting in media cycles of hype and derision. The high value of these NFTs has been variously ascribed to their high novelty value, scarcity, the adoption of NFTs as speculative assets by investors, and the lack of regulatory oversight allowing for price inflation via practices such as wash-trading (Madeline; Das et al.; Cong et al.; Le Pennec, Fielder, and Ante; Fazil, Owfi, and Taesiri). We see here the initial traditional split of discourse around cultural activity within a new medium: dual narratives of utopianism and dystopianism. Regardless of the discursive frame, activity has grown steadily since stories reporting the failure of Blockchain to deliver on its hype began appearing in 2017 (Ellul). Early coverage around blockchain, music, and NFTs echoes this capacity to leverage artificial scarcity via the creation of unique digital assets (cf Heap; Tomaino). As NFTs have developed, this discourse has become more nuanced, arguing that creators are now able to exploit both ownership and abundance. However, for the most part, music NFTs have essentially adopted the form of digital artworks and collectibles in editions ranging from 1:1 or 1:1000+. Grimesâs February 2021 Mars NFT pointed to a 32-second rotating animation of a sword-wielding cherubim above the planet Mars, accompanied by a musical cue (Grimes). Mars sold 388 NFTs for a reported fixed price of $7.5k each, grossing $2,910,000 at time of minting. By contrast, electronic artists Steve Aoki and Don Diablo have both released 1:1 NFT editions that have been auctioned via Sothebyâs, Superrare, and Nifty Gateway. Interestingly, these works have been bundled with physical goods; Diabloâs Destination Hexagonia, which sold for 600 Eth or approximately US$1.2 million at the time of sale, proffered ownership of a bespoke one-hour film hosted online, along with âa unique hand-crafted box, which includes a hard drive that contains the only copy of the high-quality file of the filmâ (Diablo). Aokiâs Hairy was much less elaborate but still promised to provide the winner of the $888,888 auction with a copy of the 35-second video of a fur-covered face shaking in time to downbeat electronica as an Infinite Objects video print (Aoki). In the first half of 2021, similar projects from high-profile artists including Deadmau5, The Weekend, Snoop Dogg, Eminem, Blondie, and 3Lau have generated an extraordinary amount of money leading to a significant, and understandable, appetite from musicians wanting to engage in this marketplace. Many of these artists and the platforms that have enabled their sales have lauded the potential for NFTs to address an alleged poor remuneration of artists from streaming and/or bypassing âindustry middlemenâ (cf. Sounds.xyz); the millions of dollars generated by sales of these NFTs presents a compelling case for exploring these new markets irrespective of risk and volatility. However, other artists have expressed reservations and/or received pushback on entry into the NFT marketplace due to concerns over the environmental impact of NFTs; volatility; and a perception of NFT markets as Ponzi schemes (Poleg), insecure (Goodin), exploitative (Purtill), or scammy (Dash). As of late 2021, increased reportage began to highlight unauthorised or fraudulent NFT minting (cf. TFL; Stephen), including in music (Newstead). However, the number of contested NFTs remains marginal in comparison to the volume of exchange that occurs in the space daily. OpenSea alone oversaw over US$2.5 billion worth of transactions per month. For the most part, online NFT marketplaces like OpenSea and Solanart oversee the exchange of products on terms not dissimilar to other large online retailers; the space is still resolutely emergent and there is much debate about what products, including recently delisted pro-Nazi and Alt-Right-related NFTs, are socially and commercially acceptable (cf. Pearson; Redman). Further, there are signs this trend may impact on both the willingness and capacity of rightsholders to engage with NFTs, particularly where official offerings are competing with extant fraudulent or illegitimate ones. Despite this, at the time of writing the NFT market as a whole does not appear prone to this type of obstruction. What remains complicated is the contested relationship between NFTs, copyrights, and ownership of the assets they represent. This is further complicated by tension between the claims of blockchainâs independence from existing regulatory structures, and the actual legal recourse available to music rights holders. Music Rights and Ownership Baym et al. note that addressing the problems of rights management and metadata is one of the important discussions around music convened by early blockchain projects. While they posit that âour point is not whether blockchain can or canât fix the problems the music industries faceâ (403), for some professionals, the blockchainâs promise of eliminating the need for trust seemed to provide an ideal solution to a widely acknowledged business-to-business problem: one of poor metadata leading
This article traces the debates occurring in the music industry where blockchain technology surged as an ideal solution for long-standing disagreements over distribution, publishing, licensing, sales, streaming, and listening. The projections (in conferences, media, opinion pieces, and academic reports) started as techno-utopian, but over time the discourse shifted from âradicalâ to âincorporativeâ goals. The technological dreams were scaled back as the scope of social challenges to technological solutions became clearer. Borrowing from Clive Barnettâs theory of convening publics, we argue that the role of the blockchain in this environment was not necessarily as a technological solution, but rather as a âconveningâ force that brought disparate actors together. Nonetheless, we still have to ask, who is invited to convene, and who is left out?