As popular music streaming services similar Spotify cut much of musicians' revenues, new technologies like nonfungible tokens (NFT) will likely help artists grab dorsum their off-white share, Saxo Bank predicted.

According to i of Saxo Banking concern'southward "Outrageous Predictions 2022: Revolution," music creators will do good from NFT-based streaming platforms, equally they allow distributing music directly to listeners without centralized intermediaries charging a fee.

Saxo Bank cryptocurrency annotator 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 some 75% or more of the total revenue.

"These models don't guide private subscribers' fees to the actual music an private subscriber listens to," Eberhardt stated, adding:

"The use instance 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."

The analyst noted that NFT-based music streaming projects are likely to kick off in 2022, including initiatives such as Audius, a blockchain music platform backed by Katy Perry, The Chainsmokers and Jason Derulo. Based on blockchain technology, the Audius platform is a decentralized music-sharing and streaming protocol designed to remove intermediaries from the music manufacture and allow fans and creators to interact with each other directly.

In contrast, the future of traditional streaming platforms such as Spotify is "bleak," according to Saxo Bank. The company predicted that Spotify shares would tumble 33% in 2022. SPOT has been dropping in 2022, starting the twelvemonth effectually $300 and dropping to as low equally $204 in August, co-ordinate to data from TradingView. At the time of writing, SPOT is trading at $229.

In the meantime, Spotify'south revenues have been steadily growing over fourth dimension, reflecting much potential for NFT-based music platforms to disrupt. According to Spotify's official 2022 financial results, the company generated vii.85 billion euros ($ix.five billion) acquirement concluding twelvemonth, a sixteen% increase from 2022. Spotify's financials continued growing in 2022, with the total amount of monthly active users surging 19% yr-on-year to 381 million in Q3 2022.

Source: Business of Apps

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As previously reported, Spotify has been paying attention to the cryptocurrency industry, looking for talent with a crypto groundwork in late 2022. The firm is besides well aware of the ascent of NFTs, as it mentioned NFTs in its Spotify Wrapped 2022 compiled for users on Midweek.

Spotify did not immediately respond to Cointelegraph'south asking for comment.