{"id":1076,"date":"2024-10-02T13:44:18","date_gmt":"2024-10-02T20:44:18","guid":{"rendered":"https:\/\/nebu.la\/blog\/?p=1076"},"modified":"2024-10-02T14:30:10","modified_gmt":"2024-10-02T21:30:10","slug":"a-better-deal-for-musicians-and-labels","status":"publish","type":"post","link":"https:\/\/nebu.la\/blog\/a-better-deal-for-musicians-and-labels\/","title":{"rendered":"A Better Deal For Musicians & Labels"},"content":{"rendered":"

As the Co-Founder of Nebula, Fuad Hawit wears many different hats. The main focus, however, in addition to fundraising, is leading the artist community, partnerships and business development.<\/span><\/p>\n

Let\u2019s gain a better understanding of why the music industry is not valuing and monetizing music as it could and how he works to overcome this problem.<\/span><\/p>\n

First of all, thank you for taking the time. Let\u2019s start off with a series of fast-paced questions to warm up:\u00a0<\/span><\/p>\n

Where are you based?
\n<\/b><\/b>Fuad<\/b>: <\/span>\u201cLos Angeles\u201d<\/span><\/i>\u00a0<\/span><\/p>\n

Which song or songs do you associate with your time in High School?
\n<\/b><\/b>Fuad<\/b>: \u201cWest Coast 90s Hip Hop\u201d<\/em><\/span><\/p>\n

Is the music industry in a good place?
\n<\/b>Fuad<\/b>: \u201c<\/span>No.\u201d<\/span><\/i><\/p>\n

Earlier this year, we saw you on stage at the NFT NYC panel discussion <\/span>\u201cDefining The Future Of Music Through NFTs\u201d<\/span><\/a>.\u00a0<\/span><\/p>\n

Why is there a need for change right now in the music industry considering that global recorded music revenues grew by 10.2% in 2023?
\n<\/b>Fuad<\/b>: <\/span>\u201cThis growth was largely driven by an increase in paid streaming subscribers, which continues to be the dominant format, accounting for around two-thirds of global recorded music revenues. This is great news, no doubt, but it is not the best we can do to value music properly. Around 700,000 new songs are added each week to Spotify alone. However, the subscription price obviously does not increase every week. So, what we have is a dilution of music\u2019s economic value every week. We are growing by devaluing music week by week. This cannot be a sustainable business model in the long run\u2014unless you disagree with me that musicians should not be exploited.\u201d<\/span><\/i><\/p>\n

\"\"<\/p>\n

Ok, but why should we consumers pay more for music if we can get it for the same price or even for free?
\n<\/b><\/b>Fuad:<\/b> \u201cWell, you don\u2019t have to. Consumers can keep doing what they are doing. What we believe, however, is that there is more to it. Not so much an alternative to streaming but an important piece in the product cycle of music which is not being considered strong enough. It\u2019s an added value. We don\u2019t take business away from anyone.\u201d<\/span><\/i>
\n<\/span>
\n<\/span>What\u2019s the deal?
\n<\/b>Fuad:<\/b> \u201cIt\u2019s the music creation and subsequent release. The moment all the pieces come together and the song, or album, comes to life. This is what\u2019s really precious. That\u2019s the core product. Streaming is the follow-up business. It\u2019s rather suited to monetize a music catalog, an archive of songs so to say, but it\u2019s underperforming when it comes to monetizing the music release because it does little to create momentum around the release.<\/span><\/i><\/p>\n

Here\u2019s an example: In April during the NFT NYC Conference, we announced together with Money Man the <\/span><\/i>pre-release of \u201cTangled\u201d on Nebula<\/span><\/i><\/a>. This is part of the partnership we have with the independent music label <\/span><\/i>EMPIRE<\/span><\/i><\/a>. For two weeks before the official release, his fans had the opportunity to get a piece of future music royalty payouts. We priced the tokens at $1.50 each. On average, a consumer spent $64. The artist and the music label raised $37,500 for a 25% participation. The total song valuation when dropped on Nebula was $150,000.<\/span><\/i><\/p>\n

When Money Man went on stage for the first time after the song\u2019s release, the excitement was palpable. We were able to create momentum and a deeper connection between the artist and his community of superfans, and not just more money.<\/span><\/i><\/p>\n

\u201cTangled\u201d was the second time Money Man released a song with us. His first drop called \u201c<\/span><\/i>Drums<\/span><\/i><\/a>\u201d ft. Babyface Ray has already recouped 100% of the fans\u2019 initial investment. That means that a fan invested in \u201cDrums by Money Man\u201d is receiving monthly cash payouts while listening to the song.\u201d<\/span><\/i><\/p>\n

\"\"<\/p>\n

What\u2019s the Nebula deal when there is a Recoupment Agreement involved between artist and a music label?
\n<\/b>Fuad:<\/i><\/b> A recoupment agreement between an artist and a music label is a legal agreement between these two parties, and it\u2019s their decision on how to agree. What we suggest, however, is to include the money raised during the pre-release sales in the equation.<\/span><\/i><\/p>\n

Typically, a record label pays for a musical artist\u2019s expenses, such as recording and marketing, and later deducts an equal amount from the artist\u2019s royalties. We suggest including token sales as well.<\/span><\/i><\/p>\n

<\/i>Here is an example:\u00a0<\/span><\/i><\/p>\n

\"\"<\/p>\n

Two things are important to note here. First, we are able to reduce the marketing costs to \u2018get heard\u2019 at release by building a community of token holders and including the Nebula drop as part of the marketing roll out strategy. We have a highly engaged community of music investors who, once invested, want the song to perform well. They have skin in the game, so they will organically promote the song on social media or through word-of-mouth recommendations because this improves their chances to recoup as well. Second, we are proving our concept of fan-based music co-ownership. <\/span><\/i>Our artists<\/span><\/i><\/a> understand that giving your fans, let\u2019s say, 20% of $100, is better than earning 100% of $60. Alongside your fans, you earn $80; alone, only $60.”<\/span><\/i><\/p>\n

Thank you, Fuad, for this conversation. <\/span>
\n<\/span><\/p>\n

 <\/p>\n

To learn more, visit <\/span>https:\/\/nebu.la\/faq<\/span><\/a> or contact us via the <\/span>contact form<\/span><\/a> or email at <\/span>hello@nebu.la<\/span><\/a>.<\/span>
\n<\/span><\/p>\n

Nebula turns music into an investment asset, creating new value for artists and fans. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

As the Co-Founder of Nebula, Fuad Hawit wears many different hats. The main focus, however, in addition to fundraising, is leading the artist community, partnerships and business development. Let\u2019s gain… Continue reading A Better Deal For Musicians & Labels<\/span><\/a><\/p>\n","protected":false},"author":9,"featured_media":1079,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[63,66,36,60,64,62,65,61],"class_list":["post-1076","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-web3","tag-advance","tag-label-deals","tag-music","tag-new-music-economy","tag-pre-release","tag-recoupment","tag-releasing-music","tag-smart-contracts","entry"],"acf":[],"yoast_head":"\nA Better Deal For Musicians & Labels -<\/title>\n<meta name=\"description\" content=\"Discover how the music industry can better value and monetize music in a conversation with Fuad Hawit, Co-Founder of Nebula. Learn about the improved deals musicians and music labels can secure when releasing music, and how to effectively manage recoupments.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nebu.la\/blog\/a-better-deal-for-musicians-and-labels\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Better Deal For Musicians & Labels -\" \/>\n<meta property=\"og:description\" content=\"Discover how the music industry can better value and monetize music in a conversation with Fuad Hawit, Co-Founder of Nebula. Learn about the improved deals musicians and music labels can secure when releasing music, and how to effectively manage recoupments.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/nebu.la\/blog\/a-better-deal-for-musicians-and-labels\/\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/people\/Nebula\/100083306673669\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-10-02T20:44:18+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-10-02T21:30:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/nebu.la\/blog\/wp-content\/uploads\/2024\/10\/Blog-8-_-A-Better-Deal-For-Musicians-Labels-1024x1024.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"1024\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Nebula\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@join_nebula\" \/>\n<meta name=\"twitter:site\" content=\"@join_nebula\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nebula\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/nebu.la\/blog\/a-better-deal-for-musicians-and-labels\/\",\"url\":\"https:\/\/nebu.la\/blog\/a-better-deal-for-musicians-and-labels\/\",\"name\":\"A Better Deal For Musicians & Labels -\",\"isPartOf\":{\"@id\":\"https:\/\/nebu.la\/blog\/#website\"},\"datePublished\":\"2024-10-02T20:44:18+00:00\",\"dateModified\":\"2024-10-02T21:30:10+00:00\",\"author\":{\"@id\":\"https:\/\/nebu.la\/blog\/#\/schema\/person\/eb15cd9595343fe50994ccd750d372a9\"},\"description\":\"Discover how the music industry can better value and monetize music in a conversation with Fuad Hawit, Co-Founder of Nebula. Learn about the improved deals musicians and music labels can secure when releasing music, and how to effectively manage recoupments.\",\"breadcrumb\":{\"@id\":\"https:\/\/nebu.la\/blog\/a-better-deal-for-musicians-and-labels\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/nebu.la\/blog\/a-better-deal-for-musicians-and-labels\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/nebu.la\/blog\/a-better-deal-for-musicians-and-labels\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/nebu.la\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"A Better Deal For Musicians & Labels\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/nebu.la\/blog\/#website\",\"url\":\"https:\/\/nebu.la\/blog\/\",\"name\":\"\",\"description\":\"Welcome to the Nebula Blog. Check out recent articles below.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/nebu.la\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/nebu.la\/blog\/#\/schema\/person\/eb15cd9595343fe50994ccd750d372a9\",\"name\":\"Nebula\",\"sameAs\":[\"http:\/\/18.184.75.165\/\"],\"url\":\"https:\/\/nebu.la\/blog\/author\/alessandro\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"A Better Deal For Musicians & Labels -","description":"Discover how the music industry can better value and monetize music in a conversation with Fuad Hawit, Co-Founder of Nebula. Learn about the improved deals musicians and music labels can secure when releasing music, and how to effectively manage recoupments.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/nebu.la\/blog\/a-better-deal-for-musicians-and-labels\/","og_locale":"en_US","og_type":"article","og_title":"A Better Deal For Musicians & Labels -","og_description":"Discover how the music industry can better value and monetize music in a conversation with Fuad Hawit, Co-Founder of Nebula. Learn about the improved deals musicians and music labels can secure when releasing music, and how to effectively manage recoupments.","og_url":"https:\/\/nebu.la\/blog\/a-better-deal-for-musicians-and-labels\/","article_publisher":"https:\/\/www.facebook.com\/people\/Nebula\/100083306673669\/","article_published_time":"2024-10-02T20:44:18+00:00","article_modified_time":"2024-10-02T21:30:10+00:00","og_image":[{"width":1024,"height":1024,"url":"https:\/\/nebu.la\/blog\/wp-content\/uploads\/2024\/10\/Blog-8-_-A-Better-Deal-For-Musicians-Labels-1024x1024.png","type":"image\/png"}],"author":"Nebula","twitter_card":"summary_large_image","twitter_creator":"@join_nebula","twitter_site":"@join_nebula","twitter_misc":{"Written by":"Nebula","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/nebu.la\/blog\/a-better-deal-for-musicians-and-labels\/","url":"https:\/\/nebu.la\/blog\/a-better-deal-for-musicians-and-labels\/","name":"A Better Deal For Musicians & Labels -","isPartOf":{"@id":"https:\/\/nebu.la\/blog\/#website"},"datePublished":"2024-10-02T20:44:18+00:00","dateModified":"2024-10-02T21:30:10+00:00","author":{"@id":"https:\/\/nebu.la\/blog\/#\/schema\/person\/eb15cd9595343fe50994ccd750d372a9"},"description":"Discover how the music industry can better value and monetize music in a conversation with Fuad Hawit, Co-Founder of Nebula. Learn about the improved deals musicians and music labels can secure when releasing music, and how to effectively manage recoupments.","breadcrumb":{"@id":"https:\/\/nebu.la\/blog\/a-better-deal-for-musicians-and-labels\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/nebu.la\/blog\/a-better-deal-for-musicians-and-labels\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/nebu.la\/blog\/a-better-deal-for-musicians-and-labels\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/nebu.la\/blog\/"},{"@type":"ListItem","position":2,"name":"A Better Deal For Musicians & Labels"}]},{"@type":"WebSite","@id":"https:\/\/nebu.la\/blog\/#website","url":"https:\/\/nebu.la\/blog\/","name":"","description":"Welcome to the Nebula Blog. Check out recent articles below.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/nebu.la\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/nebu.la\/blog\/#\/schema\/person\/eb15cd9595343fe50994ccd750d372a9","name":"Nebula","sameAs":["http:\/\/18.184.75.165\/"],"url":"https:\/\/nebu.la\/blog\/author\/alessandro\/"}]}},"uagb_featured_image_src":{"full":["https:\/\/nebu.la\/blog\/wp-content\/uploads\/2024\/10\/Blog-8-_-A-Better-Deal-For-Musicians-Labels.png",1920,1920,false],"thumbnail":["https:\/\/nebu.la\/blog\/wp-content\/uploads\/2024\/10\/Blog-8-_-A-Better-Deal-For-Musicians-Labels-150x150.png",150,150,true],"medium":["https:\/\/nebu.la\/blog\/wp-content\/uploads\/2024\/10\/Blog-8-_-A-Better-Deal-For-Musicians-Labels-300x300.png",300,300,true],"medium_large":["https:\/\/nebu.la\/blog\/wp-content\/uploads\/2024\/10\/Blog-8-_-A-Better-Deal-For-Musicians-Labels-768x768.png",750,750,true],"large":["https:\/\/nebu.la\/blog\/wp-content\/uploads\/2024\/10\/Blog-8-_-A-Better-Deal-For-Musicians-Labels-1024x1024.png",750,750,true],"as_accordion_slider":["https:\/\/nebu.la\/blog\/wp-content\/uploads\/2024\/10\/Blog-8-_-A-Better-Deal-For-Musicians-Labels-1600x900.png",1600,900,true],"pgb_image_grid":["https:\/\/nebu.la\/blog\/wp-content\/uploads\/2024\/10\/Blog-8-_-A-Better-Deal-For-Musicians-Labels-500x500.png",500,500,true],"pgb_masonary":["https:\/\/nebu.la\/blog\/wp-content\/uploads\/2024\/10\/Blog-8-_-A-Better-Deal-For-Musicians-Labels-535x535.png",535,535,true],"twp-icon":["https:\/\/nebu.la\/blog\/wp-content\/uploads\/2024\/10\/Blog-8-_-A-Better-Deal-For-Musicians-Labels-256x256.png",256,256,true],"1536x1536":["https:\/\/nebu.la\/blog\/wp-content\/uploads\/2024\/10\/Blog-8-_-A-Better-Deal-For-Musicians-Labels-1536x1536.png",1536,1536,true],"2048x2048":["https:\/\/nebu.la\/blog\/wp-content\/uploads\/2024\/10\/Blog-8-_-A-Better-Deal-For-Musicians-Labels.png",1920,1920,false],"post-thumbnail":["https:\/\/nebu.la\/blog\/wp-content\/uploads\/2024\/10\/Blog-8-_-A-Better-Deal-For-Musicians-Labels-1568x1568.png",1568,1568,true]},"uagb_author_info":{"display_name":"Nebula","author_link":"https:\/\/nebu.la\/blog\/author\/alessandro\/"},"uagb_comment_info":0,"uagb_excerpt":"As the Co-Founder of Nebula, Fuad Hawit wears many different hats. The main focus, however, in addition to fundraising, is leading the artist community, partnerships and business development. Let\u2019s gain… Continue reading A Better Deal For Musicians & Labels","_links":{"self":[{"href":"https:\/\/nebu.la\/blog\/wp-json\/wp\/v2\/posts\/1076","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nebu.la\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nebu.la\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nebu.la\/blog\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/nebu.la\/blog\/wp-json\/wp\/v2\/comments?post=1076"}],"version-history":[{"count":3,"href":"https:\/\/nebu.la\/blog\/wp-json\/wp\/v2\/posts\/1076\/revisions"}],"predecessor-version":[{"id":1083,"href":"https:\/\/nebu.la\/blog\/wp-json\/wp\/v2\/posts\/1076\/revisions\/1083"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nebu.la\/blog\/wp-json\/wp\/v2\/media\/1079"}],"wp:attachment":[{"href":"https:\/\/nebu.la\/blog\/wp-json\/wp\/v2\/media?parent=1076"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nebu.la\/blog\/wp-json\/wp\/v2\/categories?post=1076"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nebu.la\/blog\/wp-json\/wp\/v2\/tags?post=1076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}