Anyone that listens to music will likely be aware of Spotify, even if just in name. Put simply, Spotify is a service that lets you stream your favourite artists and bands for a fee. But how much of this fee ends up going to the artists that you love? Well as it turns out, about 75% of that money is potentially being kept by Spotify, and with managerial fees on top of that, the artists, and bands themselves are making fractions of a penny per stream…
It’s convenient for users, but it can be a killer for artists.
Saxo Bank has predicted that with the ever-growing NFT industry moving into more and more areas, the music industry may look completely different by the end of 2022. Take Audius for example, a blockchain music platform that has the backing of such industry titans as Katy Perry, Jason Derulo, and The Chainsmokers. It’s a decentralised music-streaming and sharing protocol which has been built to take out the intermediaries from the industry and allow musicians and creators to interact with their fans directly.
Speaking on Spotify, Apple Music, and the existing streaming services that currently dominate the music streaming space, Saxo Bank’s Cryptocurrency Analyst Mads Eberhardt had this to say:
These models don’t guide individual subscribers’ fees to the actual music an individual subscriber listens to – 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.
Saxo Banks sees the future for steaming giants such as Spotify and Apple music to be ‘bleak’ considering that musicians and artists will likely have better options in the future that will ensure they keep much more of their streaming-generated revenue, and the fans that love and support their music would much rather their fee go to the artists they love and adore rather than a corporate conglomerate such as Apple or an artist-strangling platform like Spotify.