Music apps like Apple Music and Spotify have reportedly acquired 75 per cent of musicians income altogether while getting the commission for the labels.
Spotify’s Cut is NFTs Edge
Following the major cut or revenue acquired by Spotify, musicians are likely to explore innovative technologies like NFT or non-fungible tokens. These technologies are anticipated to allow these artists to acquire the right portion of their revenue as per the forecasting made by Saxo bank.
The prediction was termed in “Outrageous Predictions 2022: Revolution”. The assessment made by Saxo bank suggests that artists like music creators have the advantage of the NFT- platform for streaming following their enablement of music distribution among listeners. This distribution channel eliminates centralised intermediaries that incur major costs.
Why do NFTs have the better opportunity?
The cryptocurrency analyst at Saxo Bank, Mads Eberhardt presented a view that online music streaming platforms including Apple Music and Spotify take a major fee for paying to the label that in combination holds 75 per cent of the overall revenue of musicians.
According to Eberhardt, the models based on NFT streaming have no use of fee for individual subscribers concerning the real music listened to by the subscribers. As per the use case of the NFTs, these technologies could be specifically enticing in developing the relations among content generators and technology. Moreover, this trend can be supported by the musicians following discrimination and unfair revenue sharing model by Spotify and Apple Music.
The music projects based on NFT are expected to grow in 2022 with initiatives like Audius, which is a blockchain music technology supported by Ketty Perry along with Jason Derulo and Chainsmokers.
The Future of Spotify by Saxo Bank
Saxo Bank has called Spotify “bleak”. The predictions made highlighted the drop in the shares by 33% in the year 2022. The shares of Spotify are already dropping in 2021, as at the beginning of the year, the share price was $300 and in August, the value was $204. Though Spotify’s revenue is steady, NFT platforms will certainly have a big potential for disruption.
