Many musicians have dabbled in NFTs, either by collecting them or releasing their own. While there are crypto platforms on which artists can share their music such as Audius, there is little action seen in the streaming world in terms of crypto and NFTs.
However, Spotify seems to be taking the first steps to change that by introducing NFTs to their over 400 million active users through their Spotify NFT test.
NFTs on Spotify?
As reported by Music Ally, Spotify is running tests for a number of users in the US in which specific artists, such as Steve Aoki and The Wombats, have displayed their NFTs on their artist profiles for all to see. While currently just an interactive gallery, the NFTs direct to OpenSea where users further can view or purchase the artists’ NFTs.
“We routinely conduct a number of tests in an effort to improve artist and fan experiences. Some of those tests end up paving the way for a broader experience and others serve only as an important learning,” Spotify told Music Ally. Could the Spotify NFT test be the first spark that lights the future of mainstream music NFTs?
Testing the Waters
Spotify has been surveying its users regarding their stance on NFTs, as seen in the survey below. The general population has shown a defiance towards NFT integration into their favorite services, such as the extreme backlash from Discord’s users that forced them to reverse their decision to integrate crypto. Some users on Twitter already have shared their discontent with the Spotify NFT test.
Spotify has taken a brave step considering the past reactions to similar tests and integrations. By testing the waters, they evidently see future potential for music NFTs and a broader use of crypto in the context of music.
While the NFT tests only direct to an external marketplace, eventually Spotify could develop their own market on which musicians can sell singles or albums as NFTs, providing a fresh way for artists to release their music and for fans to partake in secondary markets for music.
As we described in a previous article, personality NFTs could become a trend, and with Spotify’s move into the market, we may soon see the first iteration of this new use case.
Limewire partners with Universal Music Group
In related news, the former peer-to-peer download platform Limewire has struck a deal with record label Universal Music Group.
Limewire, newly-reinvented as a digital collectables marketplace, will leverage the experience of UMG to obtain licenses which allow them to "launch innovative music based NFT projects on the Limewire marketplace".
This follows April's $10 million private token sale for the project's new LMWR token. A public token sale is planned for Q4 2022.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.