NFTs could solve the concert ticket problem IF the music industry allows it
Ticket bots and scalpers and often the ticketing companies themselves create an uneven playing field and fuel a secondary market that drives up ticket prices for fans and fails to bring in more revenue for artists.
Box offices, promoters and venues all benefit from this system which generally subjugates the needs of artists and fans.
Existing NFT ticketing technology could go a long way to solving these problems if – and it’s a big if – the live music industry embraces the solution.
How NFT tickets work
It is already possible to program NFT tickets to be sold only through specifically authorized channels and for each ticket to include an identifier unique to the ticket owner. NFT tickets can also be programmed to send a portion of any resale back to the original artist, venue or promoter.
So, out of the box, NFT ticketing can provide transparency, control, and fairer revenue sharing.
But while most major ticketing companies are getting into NFTs, none seem keen on embracing the accountability and shift in power dynamics that NFT tickets would bring.
Yellowheart, AmplifyLive and AfterParty take the lead
So we follow Yellowheart, AmplifyLive, AfterParty, and a handful of other independent startups focused on using NFTs and blockchain to solve the huge problems built into the current concert ticketing system.
Recently AmplifieryLive hosted a hybrid IRL/livestream concert with NFT ticket using Defi web3 technology designed so that the artist could potentially generate additional recurring revenue from their performance months after the concert ended. completed.
After the party raised $7 million to develop NFT tickets that include tokens to unlock real-world experiences. Recently, AfterParty held its first NFT Music and Arts Festival in Las Vegas with The Chainsmokers and The Kid LAROI in front of over 6,000 attendees.
This fall, AfterParty will hold a festival in Los Angeles with access only through its second-generation Guardian NFT collection. 10,000 unique NFTs will be created to serve as VIP access and “Lifetime Festival Membership”, including priority access to purchase a VIP ticket for each subsequent year.
yellow heart, who built an NFT marketplace for ticketing and music that worked with Maroon 5, Kings of Leon, Julian Lennon and others, has already started rolling out dynamic NFTs at venues like the MGM Grand Casino in Las Vegas.
These tickets react to continued use by changing shape (for example, changing color when redeemed) and automatically providing unique perks to their owners, such as food and drink, and even promotions. specials, even after the event is over.
It’s unclear how far any of these startups will go against ticketing giants that have long-term contractual relationships with venues that also profit from the current system.
But even without NFT tickets, these big players might be forced to embrace transparency.
A new law that requires ticket sellers to use “all-inclusive” prices, including prior disclosure of all fees, has just been signed into law by New York Governor Kathy Hochul. Similar laws are under consideration in Pennsylvania, Virginia, Florida and other states.
Although a start, these laws do not address issues such as the secondary market which drives up ticket prices for fans and does not bring in more revenue for artists.
Bruce Houghton is founder and publisher of Hypebot and MusicThinkTank and is senior adviser to Bandsintown which acquired both publications in 2019. He is the founder and president of Skyline Artists Agency and a professor at Berklee College Of Music.