For Saxo Bank, NFT music platforms will wipe out Spotify in 2022
According to one of Saxo Bank’s Outrageous Predictions 2022: Revolution, music creators could benefit from NFT-based streaming platforms as they allow music to be distributed directly to listeners without centralized intermediaries charging a fee.
Saxo Bank cryptocurrency analyst Mads Eberhardt argued that mainstream music streaming platforms like Spotify and Apple Music take a substantial share, which together with the share paid to the labels is about 75% or more of total revenue.
Eberhardt said that “the use of NFT could prove particularly compelling in the music industry, as musicians currently feel unfairly treated by the revenue sharing models of current streaming platforms such as Spotify and Apple Music.”
The analyst noted that NFT-based music streaming projects will likely begin to catch on in 2022, including initiatives such as Audius, a blockchain music platform supported by Katy Perry, The Chainsmokers and Jason Derulo. Based on blockchain, the Audius platform is a decentralized music sharing and streaming protocol designed to eliminate the middleman from the music industry and allow fans and creators to interact directly with each other.
Conversely, the future of traditional streaming platforms like Spotify is “bleak,” according to Saxo Bank. The company predicted that Spotify’s stock could plummet by 33% in 2022. In fact, the stock has already fallen during 2021, but in the meantime, Spotify’s revenues have grown steadily over time.
As previously reported, Spotify has been paying attention to the cryptocurrency industry, looking for talent with a crypto background in late 2020. The company is also well aware of the rise in NFTs as it mentioned NFTs in its Spotify Wrapped 2021 completed for users on December 1, 2021.
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