5 Web3 Music Industry Predictions We’re Confident About For 2023
2022 will forever be remembered as the year Eminem and Snoop Dog brought Web3 to the MTV VMAs. As controversial as that was, it showed how Web3 is rapidly becoming mainstream. On a less kitschy note, the success of Web3 artists such as LATASHÁ and Spottie Wifi served as a wake-up call to traditional music industry executives that the Web3 music industry is here to stay. So what is in store for 2023? Here are 5 Web3 music industry predictions for 2023.
Artificial intelligence is fast becoming the talk of the town
In the first few weeks of 2023, artificial intelligence and its impact on the creative industries are already hot topics. These conversations are likely to continue throughout 2023, especially as the tech giant Microsoft has extended its investment and partnership with OpenAI, the research laboratory for artificial intelligence.
Artificial intelligence has the power to benefit artists when it comes to making menial or repetitive processes more efficient. However, the debate over copyright infringement and whether AI will replace human artists is likely to continue throughout the year. One thing is for sure: the current conversation is only the tip of the iceberg.
NFTs shift focus to utility
It is safe to say that the term “NFT” has become a buzzword over the past three years. An NFT gold rush and crypto bear market later, the time is ripe to explore useful uses for NFTs. With cash-grabby and overhyped NFT projects out of the way, artists and Web3 music industry startups can really experiment with NFTs and their applications.
2023 could see the breakout, mainstream success of Web3 artists who started selling NFTs. Moreover, Ethereum’s transition to an environmentally-friendly consensus model could well lead to more established and emerging artists joining the NFT sphere. From a music tech perspective, we will undoubtedly see more music tech companies adopt NFTs and integrate them into their current services.
Mainstreaming of the metaverse in the Web3 music industry
During the peak of the COVID-19 pandemic, many prominent artists and their teams organised metaverse concerts in the absence of live performances. While the live music industry is back in most countries, the metaverse and metaverse-adjacent concepts have maintained their popularity. In 2023, metaverse and metaverse-adjacent concepts will undoubtedly become even more mainstream.
A clear example of this is the introduction of the fully-virtual K-pop girl group MAVE. According to Metaverse Entertainment, the group will consist of hyperrealistic, AI-generated members. It is still unclear whether the group will be voiced by (human) singers or whether their songs will be generated by AI. If it is the latter, it will, unquestionably, stir the pot.
DAOs increase in scope
Decentralized autonomous organizations have proven to be a successful community-building concept. 2023 could be the year when DAOs begin to take over the role labels play in artists’ careers. Forward-looking artists could see how beneficial DAOs can be in maintaining independence and control over the creative while accessing a pool of capital provided by DAO members. Therefore, DAOs could become increasingly commonplace for artists looking for an alternative to the traditional music industry.
Increase of Web3-related government policies
This year, we will see more action at the government level when it comes to Web3 and the emerging Web3 music industry. In the US, states like Wyoming have already passed laws to promote themselves as Web3-friendly states. Central African Republic is currently working on a legal framework that supports crypto and Web3 ventures, while Dubai has taken several steps to become a Web3-friendly city.
2023 will see more countries take a clear position in terms of Web3 and AI. This will undoubtedly have an economic and cultural impact on countries that promote a friendly environment for Web3 artists and start-ups. Furthermore, such regulations have the potential to change the geographical spheres of influence in the music industry.