With well-known music streaming platforms like Spotify limiting the revenue paid out to musicians, emerging techs like NFT will assist artists in reaping the full reward of their hard work, per predictions from Saxo Bank. 

Specifically, as detailed via Saxo Bank’s “Outrageous Predictions 2022: Revolution,” music creators will reportedly be beneficial from NFT-based streaming platforms, since they offer supporting features for the direct distribution to listeners, without the involvement of centralized intermediaries charging a fee.

Saxo Bank cryptocurrency analyst Mads Eberhardt reportedly claimed that mainstream music streaming platforms, nominally Spotify and Apple Music, will demand a significant share, paired with the cut paid to labels, which will take up around 75% or over of the overall revenue.

“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.” Eberhardt further remarked. 

The analyst noted that NFT-based music streaming initiatives have a likelihood to be rolled out in the next year, including projects like Audius, a blockchain music platform receiving the backing of Katy Perry, The Chainsmokers, and Jason Derulo. 

The blockchain-powered Audius platform reportedly functions as a decentralized music-sharing and streaming protocol, built with a goal of canceling out the association of intermediaries with the music sector, as well as offering fans and creators an opportunity to interact with one another in a direct manner.

Spotify has reportedly been having its interest in the crypto sphere, on the hunt to onboard professionals with prior expertise in crypto, back in late 2020. The company is fully aware of the growth of NFTs – one of the top emerging aspects of crypto – as it mentioned NFTs in its Spotify Wrapped 2021 compiled for users on December 1st.