Cryptocurrency

Saxo Bank predicts that NFT music platform will disrupt Spotify in 2022

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Saxo Bank predicts that as popular music streaming services such as Spotify cut most of musicians’ income, new technologies such as non-fungible tokens (NFT) may help artists capture some of the response.

According to one of Saxo Bank’s “Heartful Predictions in 2022: Revolution”, music creators will benefit From NFT-based streaming media platforms, because they allow music to be distributed directly to listeners without the need for central intermediaries to charge fees.

Saxo Bank cryptocurrency analyst Mads Eberhardt believes that major cuts in mainstream music streaming platforms such as Spotify and Apple Music, coupled with cuts in payments to record companies, account for about 75% or more of total revenue.

“These models do not direct the cost of individual subscribers to the actual music that individual subscribers listen to,” Eberhardt said, adding:

“In the next step of content generator technology in the music industry, NFT use cases may be particularly compelling because musicians feel that the revenue sharing models of current streaming platforms such as Spotify and Apple Music are being treated unfairly.”

The analyst pointed out that NFT-based music streaming projects may be launched in 2022, including plans such as the blockchain music platform Audius. support Authors: Katy Perry, The Chainsmokers and Jason Derulo. Audius platform is based on blockchain technology, which is a decentralized music sharing and streaming protocol Aims to eliminate middlemen in the music industry And allow fans and creators to interact directly.

In contrast, according to Saxo Bank, the future of traditional streaming platforms such as Spotify is “gloomy.” The company predicts that Spotify’s stock price will fall by 33% in 2022. SPOT has been falling in 2021, and it was about US$300 at the beginning of the year. Drop According to TradingView, it was as low as US$204 in August. At the time of writing, SPOT is trading at $229.

At the same time, Spotify’s revenue has been growing steadily, which reflects the great potential for disruption of NFT-based music platforms.According to Spotify’s official 2020 financial results, the company generate Last year’s revenue was 7.85 billion euros (9.5 billion U.S. dollars), an increase of 16% over 2019. Spotify’s financial position continues to grow in 2021, with the total number of monthly active users surging The third quarter of 2021 increased by 19% year-on-year to 381 million.

Source: Application Business

related: NFT music market Royal raises $55 million in Series A financing

As previously reported, Spotify has been paying attention to the cryptocurrency industry, Looking for talents with a background in encryption The end of 2020. The company is also very aware of the rise of NFTs because it mentioned NFTs in Spotify Wrapped 2021 compiled for users on Wednesday.

Spotify did not immediately respond to Cointelegraph’s request for comment.