What happens when you let 5555 music fans make decisions on a major label? Warner Records is about to find out via its new Web3 imprint, Probably a label. After selling a collection of NFT Access Passes, holders will now come together on a Discord server to help develop artists together, share credits for any future awards like a Grammy, and ultimately offer IP rights in some of projects to NFT Holders.

The experiment is a collaboration between Warner Records UK and Web3 label Probably Nothing, whose debut NFT collection grossed $500,000 in seven minutes in October. Each NFT comes with different rarity and tag roles (4,000 scouts, 1,500 managers, and 55 tag bosses), allowing holders to vote on certain decisions. The rarest, and most expensive, currently at $2,138, come with priority voting and access to executive dining.

“This is a vehicle for us to explore new ways of working as a label,” he says. Sebastian Simone — Vice President of Audience and Strategy at Warner Records UK. For the first time at the major label level, fans will be involved in artist development, beginning with the creation of a virtual artist. “[The virtual artist] It will be built in conjunction with the headline community through a voting system on design, story, and other creative.”

Holders have already received a free music NFT, “Money on the Table” by Diddy and Jason Martin, but the label isn’t just focused on NFTs. It will also run traditional campaigns to help break through emerging talent within the Web3 space. Simone envisions a future where native Web3 artists developed through the label are “selling out world tours, winning awards and crossing over into the mainstream.” There will also be a crossover of Warner’s existing roster where Probably a Label will act as the first point of contact for established acts to experiment with NFT.

Warner has been an early adopter of Web3, launching the Stickmen Toys NFT project in August, an early experiment in granting intellectual property rights to fans of a major label. Holders of Stickmen Toys own all rights to the music and are free to use it however they like. Warner Records also scored the first UK No. 1 with a chart-friendly NFT release via Muse’s Will of the People. “WMG is focused on ensuring that our artists are deeply integrated into this world of Web3 so that they not only use the technologies but help define them,” he says. Oana Ruxandra, Chief Digital Officer and Executive Vice President of Business Development. “We are putting a lot of time and energy into this flourishing space.”

Rather than keep everything inside the Warner machine, though, the label partnered with Probably Nothing, a Web3 brand founded by the former restaurateur and TV chef. jeremy fall. The brand already has a community of thousands and previous experience with NFT launches, including Probably Nothing Genesis Pass, which generated 879 ETH (~$1.03 million) volume since its launch in May 2022. The idea is to co-sign Warner’s NFT activities with a name on Web3. “We are in a new market exploring and learning,” says Simone. “It is crucial that we partner with people who have a deep and early understanding of new technologies and culture.”

On paper, it’s a smart move. Many music companies and major label artists have jumped on Web3 without engaging with the existing community or taking the temperature of the market, leading to disastrous results and backlash. Collaborating with native Web3 teams seems to be a winning formula for larger corporate entities.

For Fall, the company allows him to dive deeper into the music, which he says has always been a part of his identity. During his days as a TV chef, he hosted a “Beats for Breakfast” show with Miguel. “Every time I get to be creative in a new way it excites me. I have a vision for how I could help impact the music industry…and having Warner Records help me bring those ideas to life is what excites me the most.”

However, the label’s biggest promise is to “redefine intellectual property in music.” Although the specific details are still unclear, Fall says: “We will grant intellectual property rights to certain [label] projects, depending on how they are structured…disrupting the traditional tag model by opening the doors to shared ownership in valuable content.” The team cannot yet confirm if this will extend to the virtual artist currently in development or to any of the songs.

Part of this IP experiment will also be explored in an initiative called Studio A and Studio B. “Studio A is our IP incubator,” Fall explains. “It allows our holders to launch their existing [NFT-related] IP for us”. For example, if a community member owns a Doodles, Azuki, Bored Ape Yacht Club, or other select NFTs, they can submit an idea to the tag based on the NFT, such as a music video, virtual artist, song, or short film. . movie. If accepted, a label will likely help provide resources, funding, and marketing.

Studio B is more like a bundled music library. Anyone with a label pass can submit tracks to Studio B, and someone else in the community could use that music in their own project, like a movie or sample for a beat. “If someone in our community wants to use one of the tracks for a project,” says Fall, “we will negotiate communication between the owners that allows them to get the license.”

Critics might wonder if any of this requires NFT at all. Fan voting mechanisms and shared communities can be created without Web3. Fall explains: “The traditional Web2 model doesn’t allow us… to give [fans] any property in the projects. NFTs are this exact core that gives people emotional ownership and value in the projects they are a part of.” However, it is important to note that owning an NFT does not automatically guarantee IP ownership unless explicitly stated.

In terms of providing value, the NFT label pass could be expected to increase if the label and its artists are successful, rewarding holders for their participation. However, the label will have to deal with the fact that the current NFT price (0.03 ETH) is now worth less than half the mint price (0.09 ETH). Anyone who bought on launch day is now underwater unless they got one of the 55 rarest passes. While this is not unusual for NFT projects in the current bear market, it is uncharted territory for a major label that will now have to manage the expectations of thousands of music fans who may have lost money on paper. However, the team is still not fazed. “We are focused on providing the best experience and value to our community,” says Simone. “The rest will fall into place.”