Native Drop: Fans Can Now Own Rihanna's Royalties
We release daily LinkedIn and Twitter content that breaks down Web3 concepts and brand case studies. Here are some of the highlights from the last fortnight.
Welcome to the new subscribers who have joined us since the last newsletter! We release daily LinkedIn and Twitter posts that break down Web3 concepts and brand case studies that are likely to drive mainstream adoption. Here are some of the highlights from the last fortnight that you may have missed:
Rihanna is worth $1.7B USD (Forbes, 2021) with some of her most popular songs collecting 1B streams across music platforms.
Imagine if you could own a piece of Rihanna’s music and get a slice of the revenue?
Now you can:
The fine print:
Rihanna's hit single "B**** Better Have My Money" has been sold as an NFT by web3 start-up AnotherBlock.
The 300 NFTs sold out within minutes for $210 each, giving each collector ownership of 0.0033% of the streaming royalties to the song.
From the sold out collection, AnotherBlock was able to generate $63,000 in revenue instantly.
Collectors will receive their first royalty payout on February 16 and payments every 6 months based on streaming revenue.
Collectors of the NFT will receive:
Unique artwork created by an NFT artist
Custom music track
Legal contract specifying the terms of the streaming royalties and guaranteeing real-world ownership for the NFT holder
Gated Discord community
Real-world events and priority access for upcoming NFT releases.
Why does this matter?
NFTs are becoming increasingly popular in the music industry, with several artists tokenizing their music, including The Chainsmokers and Diplo. Some of the reasons for its popularity:
Musicians can incentivise fandom through ownership:
As fans own a piece of this music, they can trade this in the open market and receive royalties for life, if they choose to hold onto it.
According to AnotherBlock, the song has already generated $679 million in streaming revenue from Spotify alone and collectors can expect returns between ~6.5% in the first year or approximately $13.65 in yearly payouts.
They can crowd-source fan input and tap into feedback:
Musicians can leverage NFTs to collect and reward creative input from their audiences on their music. They can use this feedback to build cult communities and dynamic product-market fit, to stay relevant through decades.
They can create new and diverse revenue streams:
For up-and-coming artists seeking to establish a following and generate a reliable source of income, the music industry has historically been dominated by major record labels with stringent control. However, NFTs provide a promising alternative that allows artists to cultivate a more stable and varied income.
Read the full post here: https://bit.ly/41c3KT5
Reddit’s Community Points are a game changer for brand building. Let’s break this down:
The fine print:
Reddit just released a feature called Community Points. In short, subreddits can now introduce a token to their community and measure the reputation and contribution of community members.
Community Points are displayed next to usernames and can be used to encourage quality content, reward contributors, and unlock special features. These points can be used to create special memberships, allow members to vote and reward creators and developers for their contributions.
Community Points are blockchain-based, so users can take their reputation anywhere on the internet, including embedding them on their own site or app (i.e. users can “own their reputation”).
Why does this matter?
Reddit’s Avatar rollout was a massive success:
Reddit has 1.5 billion registered users, 50M daily active users and grossed over $350 million in earnings last year.
Reddit was a trojan horse with their launch of Collectible Avatars, onboarding millions into web3. This was because they consciously removed web3 terminology from their user experience to make onboarding as smooth as possible.
Their previous success onboarding mainstream users into the space, signals to future success in onboarding users onto community points.
On-chain reputation and ownership:
Since Reddit doesn't control these tokens, communities have the ability to use and adapt their utility outside the platform. As communities leverage these tokens across platforms, they can establish a public track record of their value.
What this means is that in the future, brands that leverage tokens for community building will be able to take their online content with them to any online space and obtain any value tied to those assets, moving away from being platform dependent.
Users become co-owners and co-creators of the community:
Brand communities have become an economic moat and consumers are interested in effecting change through the brands they engage with. Reddit community points offer brands an alternative method of community building.
Read the full post here: https://bit.ly/413iWSq
Here’s one web3 move that luxury brands like YSL, Hermes and LV have made, that no one is talking about.
The fine print:
Yves Saint Laurent (YSL) filed NFT and metaverse trademark applications for its name and logo in mid January.
The trademark indicates their plans to offer virtual goods such as makeup, skincare, and hair care products in the metaverse, and create a YSL online retail store that will feature virtual goods and retail store services that will feature virtual goods as well.
Our take:
YSL’s move illustrates the increasing adoption of NFTs in the fashion industry, and signals to other brands following suit. Hermès and Louis Vuitton submitted similar applications last year to enter the metaverse and adopt NFTs.
Further, this expands the possibilities for virtual fashion and beauty experiences for consumers, providing opportunities for physical and digital integration which will help consumers to onboard into web3 quicker.
While many people may think big corporations are just jumping onto the NFT trend as a novelty, “it is not possible” to register a trademark in the United States with no intention to use it.
Read the full post here: https://bit.ly/40SS5Z7
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