Tune.fm, a blockchain-based music streaming platform, has announced a new investment of $50 million from Global Emerging Markets. This brings the platform’s total funding to $80 million, demonstrating growing interest in the potential of decentralized music distribution.
The new investment will be used to provide liquidity for Tune.fm’s native token, JAM. JAM plays a central role in the platform’s ecosystem, rewarding both artists and users. Artists receive micropayments in JAM for each second their music is streamed, while users can earn tokens by discovering and listening to newly promoted music.
Tune.fm aims to remove barriers to entry for users unfamiliar with cryptocurrency. Unlike some other platforms, Tune.fm eliminates the need for a pre-existing blockchain wallet. Users can create an account and start listening immediately, with a blockchain wallet automatically created in the onboarding process.
Tune.fm is not alone in its exploration of blockchain technology for music streaming. Other platforms are emerging, each offering unique features and approaches. For instance, Royal allows fans to co-own music copyright through ownership of NFTs tied to specific songs. Backed by prominent venture capital firms, Royal has attracted established artists like rapper Nas, who released NFTs on the platform in 2022.
Even established music platforms are recognizing the potential of blockchain technology. eMusic, a long-standing digital music platform, launched its own cryptocurrency, the eMU token, in 2020. This move aimed to provide a more direct revenue stream for artists by offering them 50% of their songs’ earnings.
The music industry has undergone a significant transformation, moving from physical CDs to streaming services. Statista projects that the global music streaming market will reach a revenue of approximately $34 billion by 2027.
Tune.fm emphasizes the need for a fairer compensation structure for artists in the music industry. They argue that current major streaming platforms leave artists with a disproportionately small share of the profits, while large corporations retain the majority. Spotify, the market leader, exemplifies this issue, with a market capitalization exceeding $66 billion while reportedly paying artists only a fraction of a cent per stream. Furthermore, artists with Spotify only begin earning royalties after achieving a minimum number of streams within a specific timeframe.
The Tune.fm investment signifies a growing interest in decentralized music streaming platforms. By offering a fairer revenue distribution model and simplified user onboarding, Tune.fm and similar platforms aim to disrupt the traditional music streaming landscape, empowering artists and creating a more equitable ecosystem.