How to understand the business value of ReNFT’s fragmentation of the NFT copyright?
In July 10, 2021, The Voice of China singer Zhao Ke and ReNFT fragmentation agreement reached cooperation, it was the first time to mint the copyright of a single into NFT and fragmented it into listening rights tokens. The single will be released on Conflux’s NFT trading platform Tspace on July 13.
Fist single “Lost in Translation”
The Voice of China | Coco Zhao
Number of copyright fragments (rights to listen) : 1000
Single sales: 100 copies
About the Single
This single is Zhao Ke’s first attempt in the music market, in the form of “Atmospheric Jazz NFT”, with a high degree of scarcity. In addition to integrating Zhao Ke’s self-created prose poem “Si Dong” into the music, the music NFT can also combined with other crypto artwork to produce new NFT works. The new works are equivalent to the secondary creation of IP which can be used for auction or sale.
How to understand the meaning of the copyright fragmentation
In traditional music platforms, fans’ rights and interests are usually acquired through passive consumption. The higher the loyalty, the more serious they will be consumed by platforms and the celebrities’ IP. As the influence of the celebrities’ IP increases, fans won’t be able to obtain the economic benefits brought by the IP’s popularity.
Why the more fans support their idols, the more obvious they will be consumed by their idols?
The main reason is that the rights and interests of fans can only be proved through a third-party platform, so they are not able to transfer trade their rights individually. Which means fans can only get their rights when they are being consumed, such as you have to pay to participate in a pre-sale to get the right to buy an album first.
Therefore, we find out that fans will support their idols for a long time, and then the commercial value of their idols’ IP will continue to improve. However, it is difficult for fans to obtain the dividends brought by the improvement of the commercial value of the idols’ IP.
In this event, ReNFT fragmentation agreement mint the album into NFT and fragment it to create 2000 audition right tokens for his fans. Only fans who obtained the auditioning right tokens could get the first single auditioning rights, and users who did not hold the auditioning tokens could not participate in the listening.
Due to the transferable nature of the token, fans who hold the right can transfer it and generate economic benefits. Fans’ fights are traded and realized in a peer-to-peer manner, and the IP value of singers can also be reflected through market-based operations (transactions).
Fragmentation scenario of NFT in relation to the meta-universe
In the near future, we will see in the meta-universe, every celebrity IP can build a NFT music space. In this space, the NFT released by musicians will be divided into music copyright NFT and music single NFT.
“Copyright NFT” is used for licenses of the platform (such as exclusive licenses, copyright license term, etc.), and “Music Singles NFT” is used for sales or cross-border collaborations, etc.
After the music copyright NFT is fragmented and held by fans, the holders will get the right to listen to music, the right to have discount when purchasing the single, etc., the relationship between fans’ rights and the IP is tied together through the agreement, so as to achieve point-to-point reciprocity and mutual benefit. Fans can trade and realize the commercial benefits from the improvement of the popularity of the IP at any time, etc.