Global Emerging Markets has provided Tune.fm, a decentralized music streaming platform with $50 million in capital, bringing its total funding to $80 million.
The new investment will ensure the liquidity of the protocol’s JAM token (JAM), utilized within the platform to compensate artists and users. LDA Capital, Alpha Token Capital, Block Alpha, Animoca Brands, The HBAR Foundation, and GDA Capital are previous investors in Tune.fm.
With an incorporated non-fungible token (NFT) marketplace, the platform provides music streaming services.
By discovering and listening to newly promoted songs, users can earn tokens, while artists receive micropayments for each second their music is streamed. The Hedera blockchain serves as the foundation of the platform.
“There is no prerequisite for a third-party wallet; users can immediately begin listening to music after creating an account,” a spokesperson said.
It is automatic to generate a blockchain wallet upon joining the platform. This procedure aims to facilitate onboarding for individuals who are not cryptocurrency consumers.
The intersection of blockchain and entertainment has been the subject of similar protocols. For example, Royal permits fans to procure NFTs associated with tracks to co-own music copyrights. a16z, a venture capital firm, supports the platform, home to artists such as rapper Nas, who released NFTs in 2022.
The area has also been a welcoming environment for industry veterans. In 2020, eMusic, a seasoned digital music platform, launched its cryptocurrency, the eMU token, which guaranteed artists direct revenue. The corporation advertised that artists would receive 50% of the revenue generated by their songs at the time.
The music industry has undergone a significant transformation, transitioning from CDs to streaming services. Statista anticipates that the global music streaming market will generate approximately $34 billion in revenue by 2027.
In a statement, Tune.fm stated, “The issue with the majority of today’s major streaming platforms is that large corporations take the majority of the profits, leaving artists with a small portion.”
The market capitalization of Spotify, the market leader, is $66.71 billion at this time. According to reports, the company pays artists an average of $0.003 to $0.004 per solitary stream. Furthermore, earnings commence only after 1,000 broadcasts fall within 12 months.
