The music industry is evolving. Musicians and record labels have begun experimenting with NFTs to help them engage with their fan base in a way they have never been able to before, hoping to harness the positive possibilities of blockchain technology by separating signal from noise.

And for the last year and a half, Atlantic Records has been doing just that. Ever since teaming up with rapper Rico Nasty to release a 1-on-1 animated NFT honoring the artist’s music video for “OHFR” in March 2021, the record label has been slowly and steadily working with the artists on its roster to educate about the possibilities offered by Web3. The slow-burn strategy could end up paying huge dividends for the label while empowering its artists and organically bringing millions of fans to Web3 in the process.

Atlantic Records Web3 Strategy

Companies that are not native to Web3 are often wary of blockchain-based technology, but as brands like Nike, Gucci and Lamborghini have shown, moving into the world of cryptocurrencies and NFTs can work quite well for legacy brands. In addition to developing strategies that appeal to Web3 natives, companies need to make sure they don’t alienate or scare off their consumer base by playing too fast and loose with a technology that is still poorly understood and widely maligned.

The Atlantic team understands this well. That’s why they’ve focused heavily on creating Web3 commits for the artists on their roster that include free mints, NFTs that cost fans nothing. In August, for example, the company helped independent artist Arden Jones send out a free NFT to fans who previously saved his monthly Age Tape project. Earlier that summer, Jones was also introduced to the NFT Dented Feels Collection and community, all of which helped increase their presence in the Web3 space while familiarizing their fan base with it. But Atlantic knows that it can’t throw its artists into the deep end with NFT: that desire has to come from them.

“We don’t convince artists to go into space. It has to be their interest,” explained Jordan Chalmers, senior director of personalized activations and emerging technology at Atlantic Records, while speaking to nft now. “It has to be his passion. they have to be curious [about the technology]. And then, it’s our job to educate them and empower them and put them in a position to go into the space as a human being, not as this huge celebrity who’s trying to monetize their intellectual property. We show them the playing field and let them take their first steps.”

Some artists are more anxious than others. For example, the Swedish singer, producer and multi-instrumentalist became the first Warner Music Group artist to appear in The Sandbox earlier this year. Part of the success of that partnership came from the artist’s pre-existing enthusiasm for the Web3 space. That excitement, Chalmers explained, carried over to his fan base.

Singer-songwriter Foauzia is another example of someone who was already an NFT enthusiast when Atlantic started helping them grow their Web3 presence organically. As the owner of a Boss Beauties NFT, Faouzia and the Atlantic team began looking for ideas to get the pop star more involved in the community without having to make a drop. They eventually licensed the artist’s song “Puppet” to be used in Boss Beauties Announcement Trailer for your Super BB collection. Since then, the artist has become an active member of the community, joining the project’s Twitter spaces and participating in her female-led mentorship program.

Navigating the bear market

The Atlantic team found that the deepening crypto winter has had a positive impact on the frequency and type of conversations they have with their artists. The last six to nine months have “supercharged” the type of questions the team receives about the crypto climate, what is causing its fluctuations, and how it might affect their ambitions in the space. Those are crucial learning opportunities that, regardless of the broader economic context in which they take place, serve to further familiarize them with Web3.

IRL POAP Activations

One of the most natural Web3 fits for musicians is the POAP protocol, which allows users to create digital or collectible badges using blockchain technology. POAP engagements targeted at fans attending a concert, for example, can significantly incent Web3 fan interactions while organically educating fans about the activities and benefits of token-gated. The Atlantic team has experimented with POAPS on several occasions, such as when they did an activation for fans who attended singer/producer Oliver Tree’s pop-up event to celebrate the release of his album. cowboy tears at the beginning of this year. Similarly, the label helped plan the appearance of a massive QR code onstage during rapper Kevin Gates’ April Red Rocks performance, allowing fans to coin an NFT simply by pulling out their phones.

“We’re thinking about ways to redirect those fans and offer them something of value,” Joseph Khoury, Atlantic Records’ vice president of A&R and marketing, said in an interview with nft now. “[We want to] give them a chance to really understand and experience first hand how token-gating works and how cool it is for the chance to be one of 75 people claiming [something like] a physical or digital wearable. We’re always thinking of exciting ways to get as many people to mint their first digital collectible. And we’ve seen a growing number of people doing that, which is really exciting for us as we try to develop our strategy.”

Atlantic Records’ Web3 plans

Atlantic is currently in talks with some well-known entities in the digital securities and NFT space along with “a few major gaming platforms” for potential partnerships to coincide with the label’s upcoming 75th anniversary next year. Khoury and Chalmers are also focused on slowly building the company’s Web3 foundation and showing the music community how NFTs can work to their advantage if they so choose. Khoury and Chalmers also praised Warner Music Group’s business development team for Web3’s amazing partnerships that allow them the freedom to engage creatively with artists on their roster. When asked what advice they would give to non-Web3 native musicians who are wary of the volatility of the space, the pair responded by emphasizing optimism and education.

“I would focus on the good,” Khoury stressed. “Focus on the great work that a lot of really amazing creators are doing in the space. It’s so easy to get sucked into the headlines and negativity. It is easy. But really take a look and discover the amazing stories that are happening from both visual artists and musicians navigating and using these tools to their advantage.”

Similarly, Chalmers stressed that musicians looking to enter the Web3 space should do so in a way that feels natural to them.

“First of all, it’s not right for everyone,” Chalmers emphasized. “But if you are curious as a musician, go and see [an NFT] collection and choose one that speaks to you. It’s no different than why we wear the shirts we wear and why we shop at the stores where we shop: it’s because it resonates. My advice to them would be to keep it authentic. Don’t do it just for the sake of it. There must be a reason.

Such attitudes are refreshing, especially in the context of NFT releases from major entertainment entities that often feel like shallow cash grabs. And given the music industry’s unfortunate history of mistreating and taking advantage of the artists who drive it, Web3 is poised to bring a shot of fairness and vigor to the industry that sorely needs it. If they stay the course, Atlantic Records could very well end up leading that charge.