Saxo Banks believes that NFT could soon replace the music streaming industry.
In recent months, there have been several reports questioning whether Spotify pays artists a reasonable amount for their work. The amount of money that the popular streaming service pays to musicians has not yet been revealed.
On the other hand, industry analysts estimate that its charges are around $4,000 per million streams. You’ll pay less than half a penny for listening to a song. It is a controversial topic whether there is a lot or a little of it. According to Saxo Bank, this is insufficient, and non-fungible tokens (NFT) are called upon to assist in the situation.
Despite all of the early chaos and hype, Saxo feels that the future of NFT technology is bright. One of Saxo Bank’s Outrageous Predictions 2022: Revolution reports suggests that NFT might be persuasive to musicians and artists who believe they are being abused or unjustly treated by present streaming services and their income arrangements.
The NFT as a threat to the music business
The present state of the music industry leaves artists and their fans with only a few viable options. Big record firms are losing their sway in today’s music market, and Spotify is the cause. According to the company’s third-quarter earnings report, revenue climbed by 27% over the same period last year to $ 2.8 billion.
Additionally, the audio giant’s gross margin will rise from 24.8% in 2018 to 26.78% in 2021. Consequently, we generated a free cash flow of over $100 million in the third quarter.
As more and more individuals pay attention to the cryptocurrency and blockchain industries, this pattern may begin to shift. There have been a lot of singers, sportsmen, and artists getting money via NFT in the last year alone.
The expert projected that music streaming services based on NFT would launch shortly. Katy Perry, The Chainsmokers, and Jason Derulo will all participate. The group is already a participant in Audius, a blockchain-based music platform. Additionally, Eberhardt expects artists to gradually remove their work from popular media that will “break apart.”
Also Read: Bitcoin Price Dropped Under The $50,000 Mark