Universal Music Group has entered a strategic partnership with the NFT platform Curio to develop their non-fungible token(NFT) collection. The NFTs will be designed for its artists and record labels.
The massive deal has many implications both for NFTs and its impact on the music world. NFTs have seen widespread use in many industries, even in-car companies, and real estate deals. Their upcoming use in the music industry only solidifies them as a legitimate long-term investment, not just a short-term trend.
Furthermore, the deal is a significant step for the world’s biggest company for music. The music industry is very competitive; Universal Music Group relies on music streaming to survive and retain an edge over its competitors.
Universal Music’s collaboration with Curio will continue along with the creation of unique digital artworks for the company and its artists, but the deal doesn’t there. The Curio platform will also serve the function of an outlet through which fans can purchase the licensed NFT’s. The first NFTs set to launch in March will be sold are from Capitol Music Group and the British singer Calum Scott.
According to Michael Nash, Vice President of digital strategy for Universal Music Group, “We have the ability with Web3 to have ownership in addition to access”. Nash firmly believes that NFTs are convenient for storing data files such as music, art, and pictures. Furthermore, the Vice President has compared the ease and functionality that NFTs offer with one that should naturally be embraced in the same way streaming music has made the art more accessible than ever.
“With all the innovations happening around Web3 and NFTs, you can make available all kinds of digital products that offer that property… And you have a technology-enforced scarcity so that you can appeal to collectors,” says Nash in an interview for Reuters.
The venture with Curio is far from Universal’s first and only investment in the world of NFTs. The music company has also created a group of characters from the Bored Ape Yach Club NFT collection. The move towards using the Bored Ape is seen by many as very strategic as it is seeking to capture some of the popularity that the collection has been receiving.
Nevertheless, the partnership with Curio is a massive milestone for the company that launched in 2020 and only dropped its first NFT this month. Their rise to fame has been exponential as so far they have released over 75 000 collectible digital assets while working with other companies from the film, television, and new music world.
