NFTs can disrupt Spotify and Apple Music
Labels and streaming platforms receive 75% - 95% of revenue paid for listening to music
Saxo Bank, the Danish investment bank specialising in online trading and investment, believe that non-fungible tokens (NFTs) can disrupt music streaming giants such as Spotify and Apple Music.
Labels and streaming platforms receive 75% - 95% of revenue paid for listening to streamed music and thus Saxo Bank predict that in 2022, new blockchain-based technology will help musicians earn back their share of industry revenue.
Mads Eberhardt, cryptocurrency analyst at Saxo Bank said in his blog that “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.”
Eberhardt goes on to say that by using “smart contract” blockchains, artists can distribute their music directly to listeners without centralised intermediaries taking a cut, while at the same time tracking their income in real-time. Additionally, listeners feel gratified that the money they are paying goes straight to the artist.
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Saxo Bank believes this will lead other artists to pull their music from “traditional” streaming platforms and investors will start to react to this movement for podcasts, movies and other forms of digitisable content as well.
NFT outlook looks “bright”
Eberhardt does state that the early days of NFTs were “chaotic and dangerous” but the future seems far more promising. An NFT-based platform “offers a new way to verify the ownership of rights, but also a way to distribute rights without intermediaries, thus a completely decentralised system obviating the need for a centralised platform.”