Sunday, August 14

NFT Music Platforms Will Discontinue Spotify In 2022, Predicts Saxo Bank

As popular music streaming services like Spotify slash much of musicians’ revenue, new technologies like non-fungible tokens (NFTs) are likely to help artists get their fair share back, predicted Saxo Bank.

According to one of the Scandalous predictions 2022: revolution, music creators would benefit from NFT-based streaming platforms, as they allow music to be distributed directly to listeners without centralized intermediaries charging a fee.

Saxo Bank cryptocurrency analyst Mads Eberhardt argued that major music streaming platforms like Spotify and Apple Music get a substantial cut, which along with the cut paid to record companies is roughly 75% or more of total revenue. .

“These models do not guide individual subscriber rates to the actual music that an individual subscriber listens to,” Eberhardt stated, adding:

“The NFT use case could prove particularly compelling in the next step for technology for content generators in the music industry, as musicians feel unfairly treated by the revenue sharing models of today’s streaming platforms. like Spotify and Apple Music ”.

The analyst noted that NFT-based music streaming projects are likely to start in 2022, including initiatives like Audius, a blockchain music platform. Backed by Katy Perry, The Chainsmokers and Jason Derulo. Based on the blockchain, the Audius platform is a decentralized protocol for sharing and streaming music designed to eliminate the middle man from the music industry and allow fans and creators to interact with each other directly.

By contrast, the future for traditional streaming platforms like Spotify is “bleak,” according to Saxo Bank. The company predicted that Spotify shares would fall 33% in 2022. SPOT has already been falling in 2021: starting the year around $ 300, Spotify shares. abandonment up to $ 204 in August, according to data from TradingView. At the time of writing, SPOT is trading at $ 229.

Meanwhile, Spotify’s revenue has been growing steadily over time, reflecting great potential for disruption for NFT-based music platforms. According to Spotify’s official 2020 financial results, the company generated Revenue of 7.85 billion euros ($ 9.5 billion) last year, a 16% increase over 2019. Spotify’s finances continued to grow in 2021, with the total number of monthly active users emerging 19% YoY to 381 million in the third quarter of 2021.

Source: Business of Apps

Related: NFT’s music market Royal raises $ 55 million in a Series A round

As previously reported, Spotify has been paying attention to the crypto industry, looking for talents with a crypto background in late 2020.The firm is also aware of the rise in NFTs as it mentioned NFTs in its compiled Spotify Wrapped 2021. for users in December. 1, 2021.

Spotify did not immediately respond to Cointelegraph’s request for comment.