Hedera blockchain-based music streaming platform Tune fm has raised $50 million in funding

The investor was Global Emerging Markets

12.09.2024 - 14:30

2 min

What’s new? Decentralized music streaming platform Tune fm based on the Hedera blockchain announced on September 12 that it had raised $50 million from investment firm Global Emerging Markets (GEM). This brings the project’s total funding to $80 million. Previous investors include LDA Capital, Alpha Token Capital, Block Alpha, Animoca Brands, HBAR Foundation, and GDA Capital.

Material by Cointelegraph

What else is known? The platform offers music streaming services and its own non-fungible token (NFT) marketplace. Performers receive micropayments for every second their music is streamed, and users can earn tokens for listening to promoted songs.

The new investment will be used to provide liquidity for the JAM (JAM) native token, which is used to make payments to artists and listeners.

Upon connection, the platform automatically creates a blockchain wallet, and users do not need a third-party wallet. This approach is aimed at simplifying registration for those new to the crypto space.

The Tune fm website cites the main problem with streaming platforms as the fact that corporations take away the bulk of the profits, leaving artists with small payouts. The platform aims to offer an alternative way to distribute revenue in the industry.

Statista predicts that the global music streaming market will reach $34 billion in revenue by 2027.

Spotify’s capitalization as the market leader is $66,71 billion. The company pays artists an average of $0,003-0,004 per listen. In addition, earnings only begin after 1000 listens within 12 months.

Tune fm is not a pioneer in blockchain streaming. It previously launched Royal, a platform backed by venture capital fund a16z, which allows fans to become co-owners of music copyrights through the purchase of NFTs. And in 2020, the eMusic platform introduced its own eMU token for payments to artists. At the time, the company said artists would receive 50% of the revenue from their songs.

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