NFTs have already taken the cultural world by storm, with more people realizing their true potential in the field of art and culture. Over the past few months, many artists have decided to launch their music collections through NFTs. Notably, Mike Shinoda of Linkin Park fame also partnered with a leading NFT marketplace to release his music in NFTs. With the trend going stronger and stronger, many people are now speculating a rivalry between music NFTs and traditional streaming platforms like Spotify.
A recent report titled “Outrageous Predictions 2022: Revolution” by Saxo Bank predicts that NFTs will give tough competition to leading music streaming platforms like Apple Music, Spotify, and Amazon Music. There are many reasons behind this argument, and one of the main factors is paying artists unfairly.
For instance, Apple Music and Spotify deduct approximately 75% from the artists’ pay, along with cuts to labels. In such a situation, artists get very little monetary compensation for their artworks. However, they also find themselves in an uncomfortable position since Spotify and Apple Music are the two biggest players in the music streaming industry. In many ways, they have a monopoly over this sector and can change rules as and how they wish.
NFTs have come up as a viable alternative to these streaming platforms. The endeavor got a boost by the involvement of big names with NFTs. Now smaller artists are releasing their tracks through NFTs. With the true ownership model of NFTs, these artists get paid what they deserve. In the future, we may see many NFT platforms taking over music streaming services.