Music platforms NFT non-fungible tokens (NFTs) are cryptocurrencies that do not possess the property of fungibility. will be an important competition for platforms such as Spotify in 2022, as predicted by Saxo Bank.
Since music streaming services such asSpotify yApple Music cut a large part of musicians’ incomes, new technologies such as non-fungible tokens (NFT) will likely help artists earn a fuller profit for their work and thus migrate to 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 screening is part of the“Scandalous predictions 2022: Revolution”. de Saxo Bank. He says music creators will benefit from NFT-based streaming platforms, as they allow music to be distributed directly to listeners without centralized a centralized organizational structure is one in which a single node or a small number of them are in control of an entire network. intermediaries charging a fee.
Musicians have little income left
Cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. analyst atSaxo Bank, Mads Eberhardt, argued that music streaming platforms such asSpotify yApple Music take away a substantial percentage from performers, which, together with the cut paid to record labels, accounts for approximately 75% or more of total revenues .
“These models do not gear individual subscriber rates to the actual music an individual subscriber listens to.” Eberhardt said, adding:
“El caso de uso de las NFT podría resultar particularmente convincente en el siguiente paso de la tecnología para los generadores de contenido en la industria de la música, ya que los músicos se sienten tratados injustamente por los modelos de distribución de ingresos de las plataformas de transmisión actuales como Spotify y Apple Music”.
The analyst noted that it is likely that music streaming projects based onNFT start and grow in 2022.
On the contrary, the future of traditional broadcast platforms such as Spotify is “gloomy”, according toSaxo Bank. The company predicted that shares of Spotify would fall by 33% in 2022.SPOT a contract or transaction buying or selling a cryptocurrency for immediate settlement, or payment and delivery, of the cryptocurrency on the market. has been falling in 2021, starting the year around USD$300 and dropping to just USD$204 in August, according to data from TradingView which reflects that today it has a slightly higher price than in August: USD $228.54.
Likewise, the income fromSpotify have been growing, he addsCointelegraph. According to the official financial results ofSpotify by 2020, the company generated €7.85 billion (USD $9.5 billion) in revenue last year, an increase of 16% 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, no doubt, is a big challenge for crypto platforms. Because, in additionSpotify is not completely oblivious to the world of cryptocurrencies. Last year was looking for a specialized director in the area.
Musicians and NFT
It is worth remembering that there are several firms working on the music-NFT confluence. For example, in the middle of this year
Tidal, the entertainment and music company jointly owned by rapper Jay-Z and the CEO of Twitter, Jack Dorsey, said could incorporate non-fungible tokens as an alternative to compensate artists. Also, there are already several artists who are marketing their music through NFT, as is the case of the bandKings of Leon.
Also, in November, a new musical band was launched, called“ Kingship “which is made up of four apes from the NFT series.“Bored Ape Yacht Club“.