Spotify and Apple Music reportedly cut 75% from musicians’ revenues together with the cut paid to labels.
As popular music streaming services like Spotify cut abundant of musicians’ revenues, new technologies like nonfungible tokens (NFT) can likely facilitate artists grab back their fair share, Saxo Bank predicted.
According to one amongst Saxo Bank’s “Outrageous Predictions 2022: Revolution,” music creators can benefit from NFT-based streaming platforms, as they permit distributing music on to listeners while not centralized intermediaries charging a fee.
Saxo Bank cryptocurrency analyst Mads Eberhardt argued that thought music streaming platforms like Spotify and Apple Music take a considerable cut, which, in conjunction with the cut paid to labels, is a few 75% or a lot of of the whole revenue.
“These models don’t guide individual subscribers’ fees to the particular music a personal subscriber listens to,” Eberhardt expressed, adding:
“The use case for NFTs could prove particularly compelling in the next step for the technology for content generators in the music industry as musicians feel unfairly treated by the revenue sharing models of the current streaming platforms like Spotify and Apple Music.”
The analyst noted that NFT-based music streaming comes are seemingly to start in 2022, as well as initiatives like Audius, a blockchain music platform backed by Katy Perry, The Chainsmokers and Jason Derulo. supported blockchain technology, the Audius platform could be a suburbanised music-sharing and streaming protocol designed to get rid of intermediaries from the music business and permit fans and creators to act with one another directly.
In distinction, the longer term of ancient streaming platforms like Spotify is “bleak,” consistent with Saxo Bank. the corporate foretold that Spotify shares would tumble 33% in 2022. SPOT has been dropping in 2021, beginning the year around $300 and dropping to as low as $204 in August, consistent with knowledge from TradingView. At the time of writing, SPOT is trading at $229.
In the meanwhile, Spotify’s revenues are steady growing over time, reflective a lot of potential for NFT-based music platforms to disrupt. consistent with Spotify’s official 2020 monetary results, the corporate generated 7.85 billion euros ($9.5 billion) revenue last year, a 16 PF increase from 2019. Spotify’s financials continuing growing in 2021, with the whole quantity of monthly active users stormy 19 year-on-year to 381 million in Q3 2021.
( Helen Partz, Coinmarketcap, 2021)