Are NFTs The New Napster? This Time The Music Industry Isn’t Taking Chances

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Is the music industry facing a new Napster?

ore than two decades after it released its first album, Kings of Leon was honored at the Rock and Roll Hall of Fame. But what got the southern-inflected rock band to Cleveland last April was not its music; it was its non-fungible token called “NFT Yourself.”

“Record deals have lost their value in a way,” says Nathan Followill, Kings of Leon’s 41-year-old drummer. “Nowadays a kid can make a record on GarageBand and put it out on TikTok or put it out as an NFT or put it out in any form. It's almost like they don't need to rely on the record industry as much as they used to, which in turn, I think, is making the record industry kind of panic.”

Other acts have done much better with NFTs. Superstar DJ Justin Blau sold $20 million worth of NFTs since he started issuing them last fall, after teaming up with the surrealist artist Mike Parisella and selling 33 limited edition NFTs of his latest album, Ultraviolet, which included animated videos by the artist synced with Blau’s music.

That’s triggered a growing effort to capitalize on the opportunity. Kings of Leon used Yellowheart, a New York-based blockchain startup founded by Josh Katz, a veteran New York music professional, to sell “NFT Yourself.” But the band had other options. Andrew Gertler, who represents singer Shawn Mendez, recently joined Jay-Z and Andreessen Horowitz in a $19 million investment in Bitski, which is building a new NFT platform for music.

 

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