Music platforms NFT will be an important competition for platforms such as Spotify in 2022, as predicted by Saxo Bank.
Since music streaming services like Spotify and Apple Music cut much of the income of musicians, new technologies such as non-fungible tokens (NFT) will likely help artists to make fuller earnings for their works and thus migrate towards them, he predicted. Saxo bank on their website.
Saxo bank is a Danish investment bank specializing in online trading and investment. It was founded as a brokerage firm in 1992.
This projection is part of the “Scandalous predictions 2022: Revolution” from Saxo Bank. It says that music creators will benefit from NFT-based streaming platforms, since they allow to distribute music directly to listeners without centralized intermediaries that charge a fee.
Little income left for musicians
The cryptocurrency analyst of Saxo Bank, Mads Eberhardt, argued that music streaming platforms like Spotify and Apple Music they take away from the performers a substantial percentage that, along with the cut paid to record companies, represents approximately 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 use case for NFTs could prove particularly compelling in the next technology step for content generators in the music industry, as musicians feel unfairly treated by the revenue distribution models of music platforms. current broadcasts such as Spotify and Apple Music ”.
The analyst noted that music streaming projects based on NFT start and grow in 2022.
In contrast, the future of traditional streaming platforms such as Spotify is “somber”, according to Saxo bank. The company predicted that the shares of Spotify they would fall 33% in 2022. SPOT has been falling in 2021, starting the year around $ 300 and dropping to just $ 204 in August, according to data from TradingView, which reflects that today it has a price a little higher than in August: USD $ 228.54.
Likewise, the income of Spotify have been growing, he adds Cointelegraph. According to the official financial results of Spotify For 2020, the company generated revenue of 7.85 billion euros ($ 9.5 billion) last year, a 16% increase over 2019. The finances of Spotify continued to grow in 2021, with the total number of monthly active users increasing 19% year-on-year.
This, without a doubt, is a great challenge for crypto platforms. Because, in addition Spotify he is not completely alien to the world of cryptocurrencies. Last year I was looking for a director specialized in the area.
Musicians and NFT
It is worth remembering that there are several firms working at the music-NFT confluence. For example, in the middle of this year
Tidal, the music and entertainment company jointly owned by rapper Jay-Z and the CEO of Twitter, Jack Dorsey said he could incorporate non-fungible tokens as an alternative to compensate artists. Likewise, there are already several artists who are marketing their music through NFT, this is the case of the band Kings of Leon.
Also, in November a new musical band called “Kingship“Which is made up of four apes from the NFT series “Bored Ape Yacht Club”.
Version of Daily bitcoin
Picture of Unsplash