Find out what to expect in the world of Web3 music in the coming year. AmplifyYou experts weigh in.

for janelle borg by AmplifyYou

2022 will forever be remembered as the year that Eminem and Snoop Dog brought Web3 to the MTV VMAs. Controversial as it was, it showed how Web3 is quickly becoming mainstream. On a less cheesy note, the success of Web3 artists like 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 awaits us for 2023? Here are 5 Web3 music industry predictions for 2023.

Artificial intelligence is quickly becoming the talk of the town

In the first weeks of 2023, artificial intelligence and its impact on the creative industries are already hot topics. These talks are likely to continue throughout 2023, especially as tech giant Microsoft has expanded its investment and partnership with OpenAI, the artificial intelligence research lab.

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 just the tip of the iceberg.

NFTs shift focus to utility

It’s safe to say that the term “NFT” has become something of a buzzword in the last three years. One NFT gold rush and one cryptocurrency bear market later, the time has come to explore useful uses for NFTs. With overpriced and cash grabbing NFT projects out of the way, artists and startups in the Web3 music industry can really experiment with NFT and its applications.

2023 could see mainstream success for Web3 artists who started selling NFTs. Furthermore, 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 technology perspective, we will undoubtedly see more music technology companies adopt NFTs and integrate them into their current services.

Integration of the metaverse in the Web3 music industry

During the height of the COVID-19 pandemic, many prominent artists and their crews hosted metaverse concerts in the absence of live performances. While the live music industry is back in most countries, the concepts of metaverse and adjacent metaverse have remained popular. In 2023, the concepts of metaverse and adjacent metaverse will undoubtedly become even more common.

A clear example of this is the presentation of the totally virtual K-pop girl group MAVE. According to Metaverse Entertainment, the group will consist of hyper-realistic AI-generated members. It is not yet clear if the group will be performed by (human) singers or if their songs will be generated by AI. If it’s the latter, it will undoubtedly stir the pot.

DAOs increase in range

Decentralized autonomous organizations have proven to be a successful community building concept. 2023 could be the year that DAOs start to take over the role labels play in artists’ careers. Forward-thinking artists were able to see how beneficial DAOs can be in maintaining independence and control over creativity while accessing a pool of capital provided by DAO members. Therefore, DAOs could become more and more common for artists looking for an alternative to the traditional music industry.

This year, we will see more action at the government level regarding Web3 and the emerging Web3 music industry. In the US, states like Wyoming have already passed laws to promote themselves as Web3-compliant states. The Central African Republic is currently working on a legal framework that supports crypto and Web3 companies, while Dubai has taken several steps to become a Web3-compliant 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 in countries that promote a favorable environment for artists and Web3 start-ups. Furthermore, such regulations have the potential to change geographic spheres of influence in the music industry.