WMG Web3

Why Web3 Matters
What is Web3?
Noteworthy Projects
Opportunities
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WEB3 TECHNOLOGIES ARE CHANGING THE WAY THE WORLD CREATES AND EXPERIENCES MUSIC

WEB3 TOOLS DRIVE NEW VALUE FOR ARTISTS

by allowing them to:

Engage and incentivize fans like never before.

Web3 enables formats and experiences that provide new ways for fans to support the artists they love and artists to reward their most loyal fans.

Reach fans more directly.

Within Web3 tools, artists can better identify their super fans and speak directly to them.

Foster community and long-term support.

Web3 creates an environment where long-term connections between artists and their fans can thrive.

Engage and incentivize fans like never before.

Web3 enables formats and experiences that provide new ways for fans to support the artists they love and artists to reward their most loyal fans.

Reach fans more directly.

Within Web3 tools, artists can better identify their super fans and speak directly to them.

Foster community and long-term support.

Web3 creates an environment where long-term connections between artists and their fans can thrive.

WHAT IS WEB3?: THE EVOLUTION OF THE INTERNET

Web3, which is an emerging version of the internet powered by blockchain technology, is fundamentally changing how we interact online. The blockchain is essentially a public database, which allows artists to create items that are backed by unique code, which allows for real online ownership for the first time. With these tools, the internet is becoming a home for thriving microcommunities where artists and fans can connect and create new experiences.

More about the history of the internet

OPPORTUNITIES: HOW CAN ARTISTS LEVERAGE WEB3?

NFTs

NFTs (non-fungible tokens) are unique digital assets that are each stored as an individual “token” on a blockchain. These tokens can be created with any type of asset: music, album artwork, music videos or entirely new content and characters. NFTs can provide utility, perks and rewards to their holders.
NFTs act as access passes for an artist’s fans and Web3 community.

Social Tokens

Social tokens are custom cryptocurrencies that are centered around a specific project, person or brand. Social tokens enable artists to reward fans for their support by providing them with spending and voting power in a new artist-centric microeconomy.

DAOs

A DAO (Decentralized Autonomous Organization) is a network connected through ownership of a common token.
DAOs can give fans ownership and voting stakes in what happens within their community.

NFTs

Social Tokens

DAOs

A DAO (Decentralized Autonomous Organization) is a network connected through ownership of a common token.
DAOs can give fans ownership and voting stakes in what happens within their community.

Currently, nfts are leading the charge

NFTs are currently one of the more popular ways people are engaging with crypto assets. They empower artists and creators to connect with audiences, build community and generate new revenue streams. Here are examples of leading NFT communities:

PFP: Profile Picture

Bored Ape Yacht Club

Members-only community for Web3 pioneers featuring exclusive events, limited edition merch and major cultural clout. This community has hosted Ape Fest featuring some of the top performers in the world and partnered with Adidas and other global brands to create entirely new opportunities. BAYC holders are granted access to new spinoff projects like Mutant Ape Yacht Club and other brand collaborations as well as the license to use BAYC intellectual property for their own creative purposes. This community continues to deliver real world value to members through its programming and rising prices.

PFP: Profile Picture

Moonbirds

The latest project from PROOF Collective, a private, members-only community of Web3 collectors, creators, and investors. This community has brought together important players in technology, culture and capital and has plans to cultivate the next major media brand. Members have benefits like exclusive news and insights (“alpha”) from leaders in the Web3 space, access to “allow lists” for sought-after upcoming projects and learning opportunities from a highly curated selection of talented people.

PFP: Profile Picture

VeeFriends

The NFT community created by Gary Vaynerchuk, who is the founder of VaynerMedia and a popular content creator for entrepreneurs. This community has developed new styles of interactive media and brought together the rising stars in business and culture. Membership benefits include access to the VeeFriends online community, tickets to VeeCon, an in-person conference focused on innovation in business and even a token-gated video game.

PFP: Profile Picture

Bored Ape Yacht Club

PFP: Profile Picture

Moonbirds

PFP: Profile Picture

VeeFriends

PFP: Profile Picture

Bored Ape Yacht Club

PFP: Profile Picture

Moonbirds

PFP: Profile Picture

VeeFriends

But there are plenty of other ways to get involved

NFT: PFP Project

PFP (profile picture) projects are usually large (10k +) collections of computer generated NFTs that allow a community of collectors to display their membership on social media. For a musician, these PFP projects could reference anything from song lyrics and album art to concert tickets and posters. The possibilities are endless, and fans will love being able to show proof of support for their favorite artists. PFP projects can create direct and indirect revenue streams and provide a new way of identifying and engaging a fan community. The projects referenced above are all examples of successful PFP projects.

Metaverse Shows

With unlimited design options, an artist can play a virtual concert at a digital rendering of a real-life venue or create an entirely new world to bring their fans together.

Tokenized Ticketing

With tokenized ticketing, fans will leave an artist’s show with a digital collectible to remember their experience. Artists will also be able to offer different levels of utility for different tokens and can offer various experiences at tiered token prices. Think - dedicated sections, exclusive after parties or limited edition merch for specific token-ticket holders. As the value with the associated token-tickets increases, secondary markets and trading may occur, and the revenues generated from these markets will be shared with artists.

Virtual Merchandise: Verch

Better yet, verch is not affected by production and inventory management or real-world fabrics and limitations and can incorporate fantastical elements and ideas. Whether it's digital posters to decorate their metaverse land or custom t-shirts for a fan’s avatar to wear, musicians can create new ways for their fans to rep their community. With more people spending time online and in digital spaces, artists can now offer ways for fans to express their interests in their favorite artists.

Membership Card

With NFT membership cards, artists can create an entirely new business model around fan engagement and both drive value from - and give back value directly to - one’s biggest fans. Recording a new album? Welcome NFT holders into the studio for a behind the scenes look at the creative process. Have a secret demo tape? Give premium NFT holders access to listen to new tunes before they’re released to the public. Have an additional verse that didn’t make it onto the EP? Release it as an NFT only for members. Artists can also allow members to vote or participate in new projects and initiatives, like collaborating on a new merch design or voting on in which city the album release party should take place.

Collectibles

Any digital asset (image, audio, video, etc.) can be minted as a unique collectible. This opens up a world of possibilities to create exciting experiences for fans. Just as there is a market for memorabilia like autographed posters or limited edition records in the physical world, blockchain technology now enables this for the virtual world by creating a market of music-related digital collectibles.

WAYS TO GET STARTED

How to get set up

*Not financial advice: do your research before buying crypto, including on potential tax implications.

Set up a wallet

This is your Web3 passport. Your wallet enables you to buy, trade, and hold crypto and tokens like NFTs and gain access to token-gated sites and events.

Buy some crypto or an NFT

Start slow and seek to understand. The market changes quickly, so focus on learning first.

Make your move

Decide how you want to make waves within Web3, and we’ll help you get started.

How to get set up

*Not financial advice: do your research before buying crypto, including on potential tax implications.

PROCEED WITH CAUTION

Regulations, environmental concerns, hacks, scams and perceived cash grabs make Web3 the wild wild west. Always make sure to do your due diligence when navigating the world of Web3.

Additional Details on Security Considerations

Innovations in Web3 move quickly, and WMG is here to help you learn about Web3 tools and leverage this new technology authentically for you and your fans.

Ready to get started?

Reach out to your label contact and let’s go!

Additional Resources