After several Web3-related job postings and encouraging comments made by CEO Daniel Ek, many people believe that Spotify is building a team to embed Web3 features into its audio streaming platform. Music has long been perceived as one of the most intriguing applications of blockchain technology, as it has the potential to enable artists to have greater control over monetization. In many ways, Web3 technology could help artists growth their income compared to their current earnings around music royalties.
Artists and NFT enthusiasts Steve Aoki and Snoop Dogg have already found success in distributing NFT assets, realizing immense financial gains. Steve Aoki said he made more money in one NFT drop than in the past 10 years of making music, during which he dropped 6 albums. Other artists, such as Grimes and Kings of Leon, have found success by minting music NFTs.
In addition to advancements benefitting artists, there’s immense potential for Spotify to enhance the consumer experience for its users by leveraging similar technology. For example, NFTs at large make it possible for fans to sell and purchase digital assets such as merchandise, backstage passes, and exclusive access to product launches. Spotify’s strong association with the music industry gives them fantastic opportunities to capitalize on the technology and introduce new use cases to music fans.
On another note, Spotify could integrate NFTs as profile pictures, similar to what Twitter did earlier this year. We’re excited to hear more from Spotify as their exact plans evolve.