Several years ago Apple paid the band U2 an unspecified royalty, and committed $100 million in a marketing campaign, to load the band’s entire new album on the new iPhone6 – and people hated it. They didn’t like that U2, a band they would never listen to, were taking up valuable “real estate” on their new phone (or iTunes). The backlash was intense for the period.
This will not be the case with NFTs.
If Apple (or any company now) wanted to do the same thing using NFTs, it would likely be accepted as one of the ‘coolest’ things to ever happen. Maybe not with U2 still, but with, well, I won’t name names but I’m sure you could guess a few.
Data sets could be established to figure out how many owners or potential buyers of a certain device are already living in a “crypto / NFT” world. Then the marketing campaign could be targeted around how cool it is X company is giving away “value” for free.
And that’s where Apple got into trouble. No one saw the U2 push as being or bringing “value” to their purchase. By that time, music had been so devalued that the choice was either say, “so what, I got a $10 album”; or say, “what is this crap I didn’t want?”. (At least 10 people probably did say, “oh wow, cool!”)
The case for NFTs
NFTs can be redeemable (known as ‘un-lockable’). You can structure NFTs so that the customer can get a physical copy if they wish. They can get tickets and merch and all kinds of extra ‘goodies’. Airdrops could go on for years. NFTs bring value like that.
But more importantly, NFTs can be resold. You don’t have to keep it on your iPhone – you can resell it and make extra money to pay the very bill you’re paying now. Or you can simply hide it and forget you ever received it. That’s real value.
How do you sell an NFT with 500,000,000 copies? Well, we’ll work that out later – but the short answer is, there are also 500,000,000 non-iPhone users who maybe want the NFT.
And of course, the drop could have 500 million, but only 2 million redeemed (claimed – non hidden) – and the other 498 million could be burned after a certain amount of time. (there’s all kinds of ways to be creative and work things out)
Electronic Manufacturers, Big Tech, and NFTs
I can foresee companies like Apple, Samsung and others paying artists X amount of money to offer exclusive NFT’s to their customers and new customers.
I can actually see Apple building out “the iTunes of NFT” platform – and bringing 500,000,000 people automatically into the world of NFTs.
Maybe they buy the domain iNFT (it’s for sale) and build out a complete system to just do that. Or maybe some entrepreneur does and then sells what they built to Apple for a quadrillion dollars.
I’m not sure why Google hasn’t done this already with their Play store. Or Microsoft with it’s Bing browser and Windows platform.
But back to the Apple
Today, if a company like Apple spent $10 million on an exclusive NFT from an artist, and received $100 million in ‘free press’ (or spent that on a marketing campaign), guess what? That would be a huge win for the company. NFTs are hot. NFTs are wanted. NFTs bring value. NFTs are now. NFTs are ‘their’ audience.
We’re never going back to the ‘old’ way. Sure, like the resurgence of physical albums, we may look back, but we’re being driven forward by NFTs and the landscape is changing fast.
Any agent worth his salt right now is looking for a deal for his artist. An exclusive deal that pays millions, and thus captures the coveted commission – not to mention royalties for each time the NFT sold in the future.
The business would benefit as well from royalties (think the .30 cent fee every time a song is sold on iTunes, etc).
What if you’re just a local media / entertainment company, or an air conditioning business – and not a manufacturer?
Even your small business can get in this ‘game’ on a local level.
The vast majority of the larger deals would invariably go to the larger and more well known artist. However, right now, no matter what city or town you live in, there are talented artists looking for a break.
Maybe they want to go to Nashville. Maybe they want to be played on the local radio. Maybe they want to be featured in the newspaper. Maybe they’d be willing to scratch your back if you scratched theirs.
You don’t have to spend millions of dollars. You don’t have to have a $100 million marketing campaign. You just have to provide value to your customer.
Because NFTs are so versatile, NFTs have the perceived value of actually offering value. And they CAN! Aligning your business in the NFT space has a value all it’s own – you’re not old, outdated, or out of touch. There’s value in that.
NFTs are going to be the incentive for people to sign up to your service. Whether local or national.
Partnerships, teamwork, local. That’s how small business wins in the competitive landscape.
But it definitely takes time to put a plan in place. That’s why it’s imperative to get started now. Like, Right Now.
NFT Creative Group helps businesses like yours do this. We welcome you to get in touch: NFTCreativeGroup@gmail.com