Saxo Bank: Spotify and Apple Music Will Be Displaced by NFT-Based Music Platforms

The development of NFT-based platforms that allow artists to sell digital rights to music directly to listeners will lead to the demise of traditional streaming services like Spotify and Apple Music. This conclusion was reached by Danish investment bank Saxo Bank in its “shock forecasts” for 2022.

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— Saxo Bank (@saxobank) December 2, 2021

Analysts noted that record labels and streaming services receive more than 75% of the payouts for listening to streaming music. Artists are dissatisfied with the unfair revenue-distribution model.

NFT-based platforms allow them to receive money in real time, bypassing intermediaries. Users of innovative services, in turn, can be confident that their funds go directly to their favorite musician.

According to bank experts, the emergence of such products signals a paradigm shift in the industry. They believe that in 2022 more prominent artists will begin removing their compositions from traditional services, which will lose out as a result.

NFT platforms are already popular among both users and artists. Even music labels are investing in them, which testifies to their faith in the new distribution model.

In November, the Royal, founded by DJ 3LAU (Justin Blau) closed a funding round of $55 million. The platform was backed by artists The Chainsmokers, Nas, Logic, Stefflon Don, Kygo and Joyner Lucas & Disclosure, as well as Crush Music. The latter manages bands such as Green Day, Panic! At the Disco and Fall Out Boy.

Earlier reports in July said Tencent and Spotify to bring their joint venture — QQ Music — onto the NFT market.

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