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

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 a Saxo Bank Amazing predictions for 2022: revolution, Music Creator Association 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’s 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 approximately 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 start in 2022, including initiatives like the blockchain music platform Audius. support Authors: Katy Perry, The Chainsmokers and Jason Derulo.The Audius platform based on blockchain is a decentralized music sharing and streaming protocol Aims to eliminate middlemen from 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 fallen in 2021: At the beginning of this year, Spotify’s stock price was around $300 Dropped 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

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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 NFT because it mentioned NFT in Spotify Wrapped 2021 compiled for users on December 1, 2021.

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