NFT music platforms will challenge Spotify in 2022

Since its inception in 2009, the crypto sector has been massively upgraded to offer more than expected. When Bitcoin was developed in 2009, Satoshi Nakamoto wanted a peer-to-peer payment system. In recent years we have seen the sector flow into other aspects like payments, services and the like. Recent estimates from Saxo Bank have caused streaming website NFT to outperform the best streaming websites in 2022.

NFT music platform will bring more revenue for musicians
According to Saxo Bank, big streaming platforms take a bigger share of musicians’ profits by giving them the smallest share. Thus, the platform believes that using an NFT-based streaming platform can help them generate huge profits. Saxo Bank believes in this assumption because most streaming platforms have third-party services that deduct a small portion of musicians’ income.

This is not the case with NFT based streaming platforms as they have eliminated all third parties by giving the user direct access. According to reviews by internal analysts at Saxo Bank, the platform and record companies share about 75% of total song revenue, making musicians just under 25%.

SPOT is down despite sales inflow
Saxo Bank believes that the minor success of platforms like Audius this year could lead to widespread penetration of other NFT-based streaming websites. In particular, Audius has partnerships with top artists in the music industry, such as Jason Derulo and Katy Perry. Audius brings music to all countries by eliminating third-party fees.

Saxo Bank also believes platforms like Spotify could see a hit in 2022, forecasting a 33% decline. SPOT, the streaming platform’s stock, hit around August after refusing to trade at $204 from a high of $300 earlier in the year. Currently, data from Trading View shows SPOT is around $229. Spotify also continues to have a larger share of sales, which makes the forecast a bit realistic.

Spotify closed last year at $9.5 billion, a massive 16% increase from its 2019 performance. However, the value is expected to increase as the company saw a huge influx of users in the first quarter of this year. Spotify is also looking into getting into the crypto world after it was announced that it wanted to partner with a company known in the industry.