Quick take:
- Jamil “Deputy” Pierre’s “Better have my money” NFTs sold out last week.
- The music producer teamed up with AnotherBlock to sell 300 NFTs of Rihanna’s hit song at $210 each.
- The NFTs allow collectors to earn royalties when the song plays on digital streaming platforms like Spotify.
Rihanna wowed Super Bowl fans on Sunday with her first concert since the 2018 Grammy awards. She opened her halftime performance with her 2014 hit “Better have my money” in a set list of 12 songs.
What some didn’t know is that just a few days before her performance at Super Bowl LVII, Jamil “Deputy” Pierre, the producer of “Better have my money” had dropped 300 limited edition NFTs based on the song.
The NFTs sold out in minutes at a price of $210 each, earning the NFT platform AnotherBlock $63,000.
But this was not an ordinary NFT drop. Holders of the NFTs have rights to a share of the streaming royalties of the song. And according to the company’s tweet on Thursday, collectors are set to receive their first royalty payouts on February 16.
“Better have my money” has already streamed more than 673 million times on Spotify and can earn collectors approximately 6.5% royalties in the first year according to AnotherBlock estimates.
Based on details obtained from the NFT drop page, Deputy offered 1% of the total streaming royalties, which gives each collector 0.0033% ownership of future royalties from all digital streaming providers.
Some platforms misinterpreted the math, assuming Deputy gave 1% of his share, rather than one percentage point off of his share.
Theoretically, in the first scenario, if the streaming rights share with Rihanna were 50:50, it would imply that collectors were getting only 0.5% of the total streaming royalties while Deputy retains 49.5%.
In the second scenario, which is the correct one, collectors get a 1% share while Deputy retails a 49% share.
In an exclusive comment to NFTgators regarding the correct calculation of royalties to collectors, AnotherBlock CEO Michel Dahlberg Traore said “Deputy was selling 1% of the future streaming master royalties of the full track, not 1% of his share, so this math is incorrect.” This was in reference to an article that claimed Deputy auctioned off 1% of his stake.
Traore also provided clarification about his company’s associated risk policy, which states that royalty payments are not guaranteed.
“Regarding the associated risk of not being guaranteed receiving royalties, it refers to the fact that we cannot guarantee that a song actually streams. Imagine if we were to drop a song that suddenly does not stream on any streaming services, in that case, we cannot guarantee streaming royalties. If it does generate streaming royalties, however, the owner will get their share,” he said.
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