Saxo Bank: NFT May Bust Spotify and Apple Music

Brief:

  • Many artists are unhappy with the size royalties from Spotify and other popular services
  • Blockchain platform with NFT elements will help solve this problem
  • Artists will make money from their music without paying middlemen

The Danish investment bank Saxo Bank presented an interesting report a few days ago. They believe the NFT market will be the beginning of the end for music streaming services like Spotify and Apple Music.

Spotify did not disclose how much it pays artists. But some say it’s roughly $ 1 for every 4000 views. Saxo Bank Crypto Analyst Mads Eberhard explains:

“It really doesn’t matter what kind of music the user listens to, his money do not go directly to your favorite artist. Funds go to the general pool, and then from it, a fee is paid to the artists, depending on their share of the total number of plays “

Another problem is the high fees that Spotify and Apple Music are famous for. According to Mads Eberhard, musicians can opt out of such services and offer their songs directly to the audience. Blockchain networks with support for smart contracts will help here. The artist will receive payment in real time without commissions.

The analyst predicted that such decentralized services based on NFT will appear in the near future. Many musicians and crypto developers are already testing such options. For example, a music NFT startup raised $ 55 million in a Series A round with support from a 16 z and The Chainsmokers.

Eberhardt also believes that over time, musicians will completely abandon popular streaming services, which will lead to their “fatal fall” .

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