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Spotify and Apple Music took a 75 percent cut from performers’ earnings, in addition to the cut given to labels.
NFTs are one-of-a-kind digital assets that may be produced and kept on a digital ledger using blockchain technology. And 2021 was the year of the rise of NFTs, which sprang out of nowhere. Uniquely created character graphics from CryptoPunks and artworks by the former unknown artist Beeple, one of which sold for a record $69 million in March, were hugely popular among investors.
While the early days of NFTs were chaotic and perilous for asset purchasers, the technology’s future seems bright. An NFT-based platform not only provides a new mechanism to verify rights ownership, but also a way to distribute rights without the need of intermediaries. For example a truly decentralized system that eliminates the need for a centralised platform.
The application case for NFTs for content creators in the music business might be particularly attractive in the next stage for the technology. Since musicians feel unfairly treated by present revenue sharing methods on streaming services like Spotify and Apple Music. Individual subscription costs are not directed to the music that each subscriber listens to in these models. Instead, all subscription fee income are combined and divided according to each artist’s portion of total streams. Furthermore, the platforms take a sizable cut. When combined with the cut given to labels, amounts to about 75% or more of the overall income.
As popular music streaming services like Spotify slash musicians’ earnings, emerging technologies like as nonfungible tokens (NFT) are expected to help artists reclaim their due share, according to Saxo Bank.
Music composers would gain from NFT-based streaming services, according to one of Saxo Bank’s “Outrageous Predictions 2022: Revolution”. They allow them to distribute music directly to listeners without paying a charge to centralized middlemen.