Danish bank Saxo Bank predicts that music streaming services such as Spotify and Apple Music are in serious jeopardy from the massive adoption of NFTs in this industry. For the bank, NFTs represent stiff competition for the unfair revenue distribution model of streaming services. Thanks to blockchain technology, artists can market the rights to their creations and content directly, without the need for intermediaries. Therefore, streaming services like the one offered by Spotify will be a thing of the past. Are affirmations are part of the “Scandalous Predictions 2022” of the financial institution.
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NFT, a new way to access music
Saxo Bank said musicians and artists are discovering in NFTs a new way to reach their listeners and to monetize their content. Through the traditional streaming services offered by Spotify and Apple Music, artists only receive a small percentage of the revenue generated, while blockchain and NFTs allow them to monetize their content in real time, in a fair and direct way.
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The bank noted that there is currently a lot of discontent in the music industry, due to the cuts that Spotify and Apple Music have applied to the earnings of musicians. Record labels and streaming services keep a large percentage of what streamed music generates, between 75% and 95%, Saxo Bank said. A situation that leaves artists financially helpless and having to fight for millions of users and reproductions to be able to earn a living on these platforms.
The NFTs, indicated this entity, are transforming the way in which listeners and consumers support artists. Through cryptocurrencies, fans can be sure that their funds will go directly to their favorite musician, he noted.
NFT, independence and freedom
Saxo Bank claims that NFTs are causing a complete revolution in the music industry and musicians are ready for it. The entity predicts a very dark future for traditional streaming services if they fail to adapt to the new demands and needs of the music market. Blockchain and smart contracts make it easy for artists to distribute their music directly to listeners, without the need for centralized intermediaries to appropriate almost all of their earnings.
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2022, the year of music NFT
Saxo Bank states that if 2021 has been the year of the NFTs of images, art and collectibles, 2022 will be the year of the NFTs of music. Many artists are already beginning to discover the potential these digital assets offer. So they are taking their music and content out of the traditional, centralized streaming platforms and onto the blockchain, where they can receive income in real time. The bank noted that filmmakers, podcasters, and other entertainment industry players are already using NFTs to tokenize and monetize their creations and content.
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In March this year, the artist 3LAU won $ 11 million from the auction of his famous vinyl collection Ultraviolet. Also, Canadian singer Grimes sold her first NFT collection for $ 6 million. The band Kings Of Leon raised close to $ 2 million with their first NFT auction. Shakira, Paris Hilton, ill-esha and Serj Tankian are other artists and musicians who are already jumping on the train of the NFTs.
Picture of langll, and Pixabay