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NFTs are blockchain’s hottest new use case for music. They should not come as a surprise.

Posted on February 8, 2021 | by Bas Grasmayer | 1 Comment

Linkin Park‘s Mike Shinoda just sold a digital piece of art for $30.000 and took to Twitter explaining some of this thoughts in a thread:

“Even if I upload the full version of the contained song to DSPs worldwide (which I can still do), i would never get even close to $10k, after fees by DSPs, label, marketing, etc.”

The ownership of this piece of art is tracked through a non-fungible token on a blockchain. Blockchains are commonly used as distributed ledgers: databases operated by networks of users, like Ethereum. They keep records of any changes to the ledger and can track things like ownership of tokens or cryptocurrency, e.g. Bitcoin.

But so what if a piece of art is recorded into a distributed database? Why the hype?

The current cultural moment is strongly influenced by the pandemic. Artists saw a big drop in income. Streaming revenue isn’t cutting it for most. So the big experimentation began. Artists searched for revenue through things like livestreaming, fan clubs, ticketed virtual meet & greets, online courses, and NFT auctions…

Why are people buying content that can easily be duplicated?

Many a music industry conference panel has bemoaned the fact that people are willing to buy a cup of coffee or bottle of water, but won’t spend that money on a download and instead chose to pirate it (in the days long before Spotify counted 150M paying subscribers). Two decades later and many of the same philosophical debates about the price and value of music continue. Meanwhile, gaming, an industry that faced the same piracy issues as the music industry, pragmatically pioneered ways to get people to pay for completely virtual items.

Gaming gave the ownership of virtual items a valuable context. People who spent many hours a week inside games would find value in virtual real estate or vanity items that translates into real world currency. This is not something recent. In 2013, someone paid $38,000 for an in-game item in Dota2 – an item which doesn’t improve a player’s performance, but just makes them look cooler. In 2010, virtual real estate by the name of Club Neverdie in online game Entropia sold for $635,000.

Now, ten years later, we’re seeing the same dynamic emerge for music. Owning an NFT doesn’t necessarily mean that nobody else can enjoy the work of art associated with the token, much like with physical art that’s exhibited. With the emerging metaverse, some are expecting NFTs to become its property rights.

It works like an auction; the value is determined by the bidders. At the end, one person gets the NFT. Think of it like like owning a 1 of a kind item in a game, or like “owning” an instagram post. It’s a weird thing to own, yes, but:
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— Mike Shinoda (@mikeshinoda) February 6, 2021

NFT x Metaverse

The idea of the metaverse essentially boils down to a virtual shared space. One prominent example of this concept is Roblox, which is a gaming platform in which people can build their own experiences that are all interconnected through Roblox’ economy (its currency being Robux). Another is Fortnite, which has some of the ingredients already, but hasn’t yet developed a marketplace with low barriers to entry like Roblox has. Despite that, one of the best primers on the topic of the metaverse is the below interview with Tim Sweeney, CEO of Epic Games, which owns Fortnite.

It’s the convergence of various pandemic-accelerated trends (VR / XR, virtual economies, crypto) and the expectations of people in these domains that is currently driving NFT art’s success stories ($750,000 CryptoPunk sale, Panther Modern‘s $666 sale, virtual critters for $100,000 a piece). If you want to know what the future holds, look at what the smartest people in the room are doing, because they’ll be the ones building that future.

12 years after the initial release of Bitcoin and the world’s introduction to blockchain, crypto is starting to emerge as an anticipated layer of connectivity for transactions occurring in the metaverse. With a market cap higher than Facebook at the time of writing, Bitcoin has made many early adopters very rich (as have other cryptocurrencies). Besides figuring out how to build an infrastructure in which they can effectively use their blockchain-riches, we’re seeing this money flow into other spaces, like art (and soon Tesla).

Simplified: to understand some of NFTs’ success, you should look at the crypto space as a metaverse without an interface that looks like a video game. The participants of that space are still players: they’re building their own world, their own infrastructure. They care about what they look like in that world, just like how people in virtual worlds care enough about their looks that they’re willing to buy in-game currencies like Robux (to the sum of billions of USD in 2020). Owning art is cool – it gives you standing in your micro-community which is part of larger meta-communities (e.g. a gaming clan is a community inside the community of one server of a game, which is a community inside the global player-base of that game).

And sure, there’s altruism too, because it’s cool to support art. However counting on altruism tends to spawn panel discussions to compare bottles of water to digital art. Focus on non-altruistic value.

Lastly, regarding the game item or IG post comparison: it doesn’t matter if you think a current bidding price is too high for a digital collectible. It matters that one person thinks the the price is worth it.
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— Mike Shinoda (@mikeshinoda) February 6, 2021

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What BITKRAFT’s recent investments suggest about music’s future and the metaverse

Posted on August 11, 2020 | by Bas Grasmayer

Forget the usual suspects: venture capital firm BITKRAFT is easily one of the most interesting funds to watch in the entertainment space. Since the start of June, they have participated in 5 funding rounds totalling over $44 million into companies pioneering possible futures for digital media.

With music mostly detached from its “real world” context of live gigs, it has become obvious that music’s virtual context of livestreams, virtual events, and online communities is set to shape tastes, genres and experiences. Professionals from across the industry, from labels to studios to artists, are increasingly involved in virtual aspects of our culture. Two recent examples:

Sony Music Entertainment is actively recruiting engineers and designers familiar with the Unreal 3D engine.
Entertainment management CAA recently signed its first avatar: Miquela.

So what do BITKRAFT’s recent investees enable? A look at 3.

Koji

Co-founded by Dmitry Shapiro, who previously founded Veoh and served as CTO of MySpace Music, Koji is a tool that makes it easy to remix posts for social media.

The posts are shareable and interactive, allowing people to remix them using content from various platforms, so Koji sees them more like “mini-apps“:

“If you’ve experienced WeChat Mini Programs, Kojis are the cross-platform, standards-based, modern versions of that.”

What appears to be the strategy, is for other platforms to allow these interactive forms of media inside of them, similar to how most social media platforms now have Giphy integrations to bring GIFs from the Giphy platform into your favourite social network.

So that sets it apart from other remix platforms, like TikTok or audiovisual mashup platform Coub which emphasise the on-platform experience. Unlike TikTok, Coub is not a walled garden, but most of the activity related to the platform seems to be happening in the garden regardless.

What does it mean for music?

Remix culture has gone through multiple iterations and isn’t done yet. Since the start of the digital era, we’ve seen these important steps for music’s remix culture:

Anyone with a computer being able to acquire (through piracy or a purchase) music production software at reasonable costs and distributing their creations through networks and filesharing apps. For example the rapper Benefit becoming an internet underground legend with a $5 mic and a $12 sound card.
As time went on, the above development spawned mash-up culture which moved from filesharing platforms over to the blogosphere.
SoundCloud emerged and made it even easier to follow and exchange with other producers around the world, spawning remix-heavy genre subcultures like Moombahton, ‘EDM Trap’, and ‘Cloudrap’.
Anyone with a mobile phone being able to produce, mix or remix media.
‘Remix’ becoming a default interaction through the dynamics of Snapchat, Instagram Stories, Musically and TikTok as people use face filters, music, and various imagery as overlays to interact with friends and connect to new people.

Koji’s bet seems to be that there’s room for remixable media inside these platforms – think embedding a TikTok post (content) into an Instagram Story (context), but then being able to change elements of the content independently from context.

If this sounds vague, go play around with Koji: open one and hit the remix button.

Short version: we’ll see remixable content appear in countless contexts and will be able to move that content from one context (e.g. Fortnite) to another (e.g. Instagram Stories) without having it attached to the context (e.g. a screenshot of something (content) inside Fortnite (context)).

This will allow for an integrated web where you can interact with media from very day-to-day layers (like photo-based social media) to layers further removed from the physical world (like virtual reality). Like that time Zuckerberg demoed Oculus VR and Priscilla Chan (in ‘the real world’) called him while he was plugged into VR (see the Mixed reality section).

Voicemod

Sticking to the theme of layers: Voicemod allows people to adjust their voice digitally in real-time. In a virtual environment, you can design your avatar however you wish, but unless you’re great at voice acting your voice will sound kind of ‘normal’.

In more every day terms: we’ve all seen Instagram and Snapchat filters that add dog features to friends’ faces — Voicemod makes the voice equivalent of that.

While their technology seems targeted towards demographics in immersive, fully virtual environments like online games or VR-environments, they also cater to YouTubers.

One of the things they’ll do with their investment is double down on mobile, for which they’ve already teamed up with T-Pain who’s well-known for his use of auto-tune.

What does it mean for music?

The first aspect to point out is that voice modification has become increasingly easy and cheap to achieve, even in real-time. The second aspect is that BITKRAFT and Voicemod see a future with a high adoption of voice modification and the avatarisation of voice.

We already have virtual pop stars, so the boundary between virtual and ‘real’ is blurring, especially now that we can simulate elements that up until now were artefacts of “the real world” like our voice. Whereas today’s virtual pop stars didn’t emerge from the virtual landscape, future music personalities could come from this landscape, including their pre-programmed voices. Consider an influencer who’s mostly known for their in-game personality; now what if that influencer becomes popular for their music?

It’s the next generation of digital native.

Playable Worlds

The first thing you need to know about this startup is that it’s founded by Raph Koster, who was the lead designer for Ultima Online (UO). UO was an incredibly influential MMORPG: massively multiplayer online roleplaying game. It was released in 1997 – years before Runescape and World of Warfcraft. And people are still playing it today, lauding its open world of worlds where gameplay is as much player-made as it is scripted.

The next thing you need to know is that Playable Worlds intend to accelerate the development of a concept called the metaverse. The metaverse is the idea of being able to plug into a virtual environment that connects all kinds of different virtual environments. Minecraft and Roblox are often mentioned as examples due to the ability for people to creatively craft various environments and objects. Fortnite also has characteristics of this, as beyond a gaming environment it now also contains an environment to hang out in and perhaps even enjoy a concert called Party Royale (pictured above).

Playable Worlds‘ first goal is to create a “cloud-native sandbox MMO” game, which sounds reminiscent of aforementioned Ultima Online. Sam Engelbardt, one of the company’s investors, says that “Koster’s vision and demonstrated ability to give players a compelling sandbox for the expression of their digital identities makes him exactly the sort of founder that he likes to back. Englebardt is backing companies that he believes will lay the foundation for the metaverse.”

What does it mean for music?

While Koji and Voicemod are tools that help people immerse inside and across “the metaverse”, Playable Worlds’ team is building out the technology to enable such a metaverse and then building a game with that technology.

Soon, our assumed digital identities will be as important as our given day-to-day identity – which is something that has actually already occurred for many people in the earlier days of the internet with its internet forums, chatrooms, and networks, before using your real name and identity were the status quo.

With that emerging landscape come new types of fan culture and many new possibilities to connect with people who may have a variety of identities across virtual environments. If that sounds niche: that’s how it starts. Ultima Online provided a stepping stone towards the landscape of Twitch, Fortnite, and other virtual experiences which the music industry is committing itself to now, 20 years later.

If this post feels overwhelming or just too “out there” and you’re curious about how music has already been impacted by gaming, I suggest reading my article Hidden in plain sight: a global underground dance music scene with millions of fans from 2016. It was a bit “out there” at that time too, but by now it’s obvious.

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Better Than Real Life: 8 Generatives

Posted on August 3, 2020 | by Bas Grasmayer

Virtual concerts are not here to replace live music. They’re here to provide a new type of entertainment. Personally, I find the average virtual concert dull and inconvenient. It’s dull because it’s usually not more stimulating than a conversation with a friend, playing a video game, reading a book, watching a show on Netflix, or in some cases even scrolling through my Instagram. It’s inconvenient, because I’m supposed to tune in at a specific moment, whereas all other in-home entertainment in my life is basically on-demand.

So, what is better than all those things? What can make people decide to stay at home, rather than catch some fresh summer air before we head into inevitable winter lockdowns?

Virtual music events have to offer things that other types of entertainment can’t. A virtual event has to leverage the context of music, rather than just transmit a performance to an audience. If it is to be sustainable for musicians beyond the pandemic, because they prefer not to travel as much or want to stay more closely connected with fans on a regular basis, it will also have to be in some ways better than the real life equivalent.

A vast number of livestreams are basically just a poor version of an actual live event. The only edge it has is that you can be lazy and stay on your couch (and it’s easier to social distance with a front door between you and the world). So where does a virtual event have an edge? What can you do online that you can’t do in real life?

This post is inspired by Kevin Kelly’s Better Than Free published in 2008. He describes generatives as follows: “a generative value is a quality or attribute that must be generated, grown, cultivated, nurtured. […] In the digital arena, generative qualities add value to free copies, and therefore are something that can be sold.”

Putting it into the context of the post, generatives are qualities or attributes that make people choose virtual events over “real life”.

8 generatives better than real life

Magical powers

Let’s start big: we would all love to have magical powers. Whether it’s flying around a (virtual) venue or invisibly teleporting on to the stage to see what the artists are doing. Through virtual live events you can let people do things they literally can’t do in real life – not because it’s illegal, but because of the constraints of our oft-lamented physical reality.

Figure out what makes sense for you as an artist, band, or organiser and then give your audience superpowers. That could be multi-camera setups that let fans jump around the room and zoom in on what you’re doing, virtual environments in which people can move by flying around, or a telekenetic airhorn that you’ve set up to respond to people’s tips on Twitch.

Interactivity

Recognize people’s contexts and attention span. Asking people to sit on their couch and quietly watch a music performance does not fit most types of music well. Most concerts are interactive: people dance, sing, jump, clap, cheer, drink, take photos, meet people, and perhaps jump into a mosh pit.

The home context is different: there’s mobile phone notifications that compete for attention, there’s messaging apps, there’s that untidy corner of the room you will definitely get around to cleaning up some time this week…

Keep this in mind. You can give people an escape from interactions by making events interactive – even if that just means responding to what’s happening in the chat.

Context synergy

Imagine loving a virtual environment like a video game so much that you spend the majority of your free time in it or even just a few hours a week. Now imagine an artist you’re a fan of coming to this digital space that’s like a virtual home to you. Are you going to go outside and do something else? Hell no.

One could argue that the context of Minecraft or Fortnite is part of ‘real life’ anno 2020. In that case: are you going to play on your usual server and miss that concert? Hell no.

Artist proximity

Fans can feel much closer to an artist from the safety of their home and a keyboard than they might in real life. Some people go up to artists to thank them, some don’t because they don’t want to bother them, and some are just absolutely terrified of the interaction. If there is any interaction, it’s usually a quick thank you and signature after a concert and that’s it.

Online, you can leave room for fans to really interact: you can talk about topics, show them what you’re working on, answer questions, and acknowledge the individual by mentioning their name or nickname on the stream.

Fan community or scene networking

Music brings people together. Before the web, listening to music by an artist you were into was the only way for some people to know that there were other people who feel or think just like them (especially young people). Now you can just Google those feelings and thoughts and go down an internet rabbit hole of communities, so while music has lost that monopoly it’s still a powerful force as a connector.

Although people are still connected to various degrees of their social lives (flatmates, family, close friends, colleagues) they are likely disconnected from further degrees such as acquaintances, people they’d run into at concerts, and other people they’d only meet when at events and social gatherings. Furthermore, while performers would see the scene they’re part of in many cities, many fans wouldn’t be exposed to their own scene in other places.

If this is an important aspect to your music, bringing these scenes and communities together online can create social meaning that’s better than a Zoom call with mom (sorry, moms).

We’ve all seen recently what connected fan communities can do.

Global proximity

Similarly, it’s great to feel closer to the rest of the world while being unable to travel. Many dance music streams will have Zoom sessions running which fans can join in order to broadcast themselves. You’ll see ravers sitting in their living rooms or at their desks, waving flags, drinking, or eating chicken (as seen on-stream during Dominator‘s virtual event). Occasionally, some of these webcams will be shown alongside the performers in the main stream, showing a global fan community from Canada to Brazil to Thailand to Italy (in the case of Dominator, that chicken-eating guy’s backdrop was a Mad Max-like stage with cars and motorbikes making jumps behind the DJ – unfortunately the “in-stream” is not visible on the recordings uploaded to YouTube).

If people have friends far away, they can experience that proximity together by tuning into the same stream. While there are ways to do watch Netflix together in a synced session, it’s not as special as coming together in an event that thousands of others are also using to come together.

An example of DJs "instreaming" a fan during Q-Dance's Qonnect event in April. — An example of DJs “instreaming” a fan during Q-Dance’s Qonnect event in April.

A role to play for the viewer

This was already captured above, but I think the principle is so important that it’s worth making it explicit. Instead of broadcasting a stream and implying fans should just sit down and shut up, you can involve them.

Think instreaming by showing fans’ cams to the wider fan community, by improvising based on fan input, or by letting them interact with each other through magical powers. To put it in Ishkur’s words:

A party exists for its own sake and for the sake of its participants. Your job is to contribute; to interact and celebrate.

When you go see Tiesto, you are not contributing anything. You are being a spectator. You might as well be dead.

The premise may be awkward as a performer, but make the event about more than yourself. Let the people who attend participate. Make them part of ‘you’.

Personal example from back in March: with Hard Dance Berlin I created a line-up of performers and then used Plug.dj to let the crowd have a chance to go back to back with the DJs, so DJs would play half of their set time and the crowd was responsible for the other half of the tracks played during that time. The event was called DJs vs Berlin. Afterwards, we opened up the decks to the audience queue.

Another example is audience avatar customization as can be done in Fortnite, Minecraft, IMVU, Club Cooee (pictured at the top) and other virtual event spaces.

FOMO: Fear Of Missing Out

I never listened to Slayer much, but when they announced their last tour I got tickets to their show and started listening to their discography a lot. And the show itself? It was awesome. However, similar decisions motivated by FOMO-related impulses haven’t always panned out as well. Sometimes something was a waste of money or a night better spent asleep. Oh well.

My point: FOMO is powerful. It can make people prioritize things that normally wouldn’t be high on their list. Whether it’s a one-time only virtual event like the screening of Nick Cave’s Idiot Prayer, the release of limited edition merch during a stream, rotating line-ups like the Verzuz battles, or just having unique sets in your events as a result of improvisation and interaction: all of these create FOMO and make people want to tune in instead of going out.

Bonus: if your event doesn’t go as well as you hoped, but is not terrible either, cognitive dissonance will make sure that people’s anticipation translates into satisfaction. (But remember: trust and attention are fickle: do what you can to avoid disappointing people)

A nod to Kevin Kelly’s Better Than Free post, which inspired my own. The post has seen hundreds of comments since publication: if you think I missed something, please leave a comment below.

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