I love the band Coheed and Cambria. Though primarily a hard rock band, they masterfully explore various genres and vibes throughout their discography, all paired with infectious pop melodies. The diversity in their sound is anchored by the sci-fi lore created by frontman Claudio Sanchez. Each album tells fragments of a larger story, woven into lyrics and explored in Sanchez's comic books and novels. This continuity adds depth to their creativity and supports the band through unique merchandise.
At a Coheed concert last summer, I visited the merch tent, surrounded by fans eager to collect rare items. I admired the sci-fi aesthetic on T-shirts, posters, and even a full costume mask. However, as someone who lives minimally, I faced a dilemma: where would I put all this stuff? I wanted to support the band but didn’t want my home to become a Coheed fan cave. It struck me that I am the type of customer who could benefit from digital merchandise like NFTs. If that’s true, why wasn’t that an option?
Music NFTs aren't dead, but they do have an identity problem, making it hard for average people to understand their value. This confusion leaves potential customers without a reference point to compare goods or assess the value of these tokens.
In essence, music NFTs enable verified ownership of digital goods. This ownership can serve as proof of purchase and scarcity, paving the way for them to become a vehicle for speculation and appreciation.
A potential use case is collectibles, analogous to vinyl records. However, vinyl currently offers much more than music NFTs: unique listening experiences, album art, and liner notes that build lore around the artist and their work. While some artists, like TK the Legend, create full multimedia projects tied to NFTs, most offer just a song and a low-effort image.
Vinyls also enhance homes, setting a mood and adding aesthetic value. Although some envision a future metaverse with digital spaces mimicking real life, current online spaces are too transient for music NFTs to offer the same value vinyls provide in physical spaces.
Music NFTs are also used for rights management, with contracts that divide ownership of assets like songs, allowing for royalty splits or secondary sales. This added utility, while valuable for creators, further muddies the value proposition of music NFTs for consumers. Are they buying a collectible receipt for a song or a stake in a rights scheme? This complexity appeals to a niche, financially savvy audience, not the average fan.
With streaming turning recorded music into a monthly utility, artists need new revenue streams. NFTs offer a great opportunity but must align with how consumers live and create real value. Everyone in line at the Coheed show was ready to buy physical merch, but if it were NFTs, what would they use them for?
Artists and NFT creators must understand current consumer behaviors and desires. By combining these insights with good digital design, we could see the category reborn with innovative goods tied to NFTs. Until then, consumer confusion will drive them back to traditional merchandise like T-shirts and vinyl records.
