Saxo Bank Believes NFTs Can Disrupt Spotify, Apple Music

Many reports have questioned whether Spotify is fair to musicians. Although Spotify has yet to reveal how much it pays musicians, experts in the industry suggest that its payout rate for recordings is close to $4,000 per million streams. This is less than half a penny per stream. According to Saxo Bank, NFT is there to save the day.

NFTs vs. Traditional Streaming Platforms

Saxo believes the future of NFT technology is bright despite the hype and initial chaos. One of Saxo Bank’s Outrageous Prognosis 2022: Revolution states that NFTs can be compelling for musicians and artists who feel exploited by streaming platforms and their revenue streams.

In the same vein, Mads Eberhardt, a cryptocurrency analyst at a Danish bank, wrote:

These models do not guide subscribers’ fees to specific music. Instead, subscription fees revenues are aggregated based on each artist’s share in total streams.

The streaming platforms also generate a huge cut, which, when combined with the cut paid labels, amounts to up to 75% of the total revenue.

NFT Challenges the Music Industry

Both artists and fans have only a few viable options because of the infrastructural limitations of the current music industry. The dominance of the major record companies is declining. Spotify is the reason. The company’s third quarter earnings showed a 27% increase in revenue year-over-year to $2.8 billion.

The audio company also saw its gross margin increase from 24.8% in 2017 to 26.7% by 2021. This helped it generate more than $100 million in free cashflow in Q3.

As more people around the globe pay close attention to cryptocurrency and the blockchain industry, this trend could change. Many musicians, athletes, and artists will be cashing in on the NFT scene by 2021.

Eberhardt of Saxo is quite confident about the success of the project. Musicians can now distribute their creations directly to listeners by using smart-contract blockchain networks. This decentralized system would allow artists to get paid immediately and retain the revenue cut that is usually given to streaming sites.

The analyst made a rather bold prediction that NFT-based music streaming platforms would emerge, which will include Katy Perry, The Chainsmokers and Jason Derulo. They have been involved in the development of Audius, a blockchain music platform. Eberhardt is slowly believing that musicians will find their music on mainstream platforms, which will “terminally disrupted.”

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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