NFT music platforms to interrupt Spotify in 2022,

NFT music platforms to interrupt Spotify in 2022, Saxo Bank predicts

As popular music streaming services like Spotify slash musicians’ earnings, emerging technologies such as nonfungible tokens (NFTs) are expected to help artists reclaim their rightful portion, according to Saxo Bank.

Music composers will gain from NFT-based streaming services, according to one of Saxo Bank’s Outrageous Predictions 2022: Revolution, since they allow them to distribute music directly to listeners without paying a charge to centralised intermediaries.

ALSO READ: 8 Ways on how to Use Cryptocurrency to Pay on Amazon

Mads Eberhardt, a cryptocurrency analyst at Saxo Bank, claims that major music streaming companies like Spotify and Apple Music take a significant cut, accounting for 75 percent or more of overall income when combined with the cut paid to labels.

“These models don’t link individual customers’ costs to the music they actually listen to,” Eberhardt said, 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.”

According to the analyst, NFT-based music streaming projects, such as Audius, a blockchain music platform funded by Katy Perry, The Chainsmokers, and Jason Derulo, are expected to launch in 2022. The Audius platform, which is built on blockchain, is a decentralised music-sharing and streaming protocol that aims to take out the middlemen in the music industry and allow fans and producers to communicate directly.

Traditional streaming services like Spotify, on the other hand, have a “bleak” future, according to Saxo Bank. Spotify’s stock is expected to fall 33% in 2022, according to the firm. According to TradingView statistics, Spotify shares plunged as low as $204 in August, after starting the year above $300. SPOT is now trading at $229 at the time of writing.

Meanwhile, Spotify’s earnings have been continuously increasing over time, indicating that NFT-based music services have a lot of potential to disrupt. Spotify’s official 2020 financial reports show that the firm made 7.85 billion euro ($9.5 billion) in revenue last year, up 16 percent from the previous year. Spotify’s financials improved in 2021, with the overall number of monthly active users increasing 19 percent year over year to 381 million in the third quarter.

Spotify has been paying attention to the cryptocurrency business, as previously reported, and will be searching for individuals with a crypto experience in late 2020. The company is also aware of the emergence of NFTs, as it addressed them in its Spotify Wrapped 2021 report, which was released on December 1, 2021.

NFT music platforms to interrupt Spotify in 2022

Spotify has been paying attention to the cryptocurrency business, as previously reported, and will be searching for individuals with a crypto experience in late 2020. The company is also aware of the emergence of NFTs, as it addressed them in its Spotify Wrapped 2021 report, which was released on December 1, 2021.

I will say I was not expecting to see an NFT reference in my Spotify Wrapped today but here we are pic.twitter.com/KnpwrR90Y4— Meghan Bobrowsky (@MeghanBobrowsky) December 1, 2021

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