Most of the popular music streaming services like Spotify and Apple Music cut much of musicians’ revenues, new technologies like nonfungible tokens (NFT) will likely help artists grab back their fair share, Saxo Bank predicted.
According to one of Saxo Bank’s “Outrageous Predictions, 2022: Revolution,” music creators will benefit from NFT-based streaming platforms, as they allow distributing music directly to listeners without centralized intermediaries charging a fee.
Saxo Bank cryptocurrency analyst Mads Eberhardt argued that mainstream music streaming platforms such as Spotify and Apple Music take a substantial cut, which, together with the cut paid to labels, is around 75% or more of the total revenue.
“These models don’t guide individual subscribers’ fees to the actual music an individual subscriber listens to,”
Adding further: “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.”
