On Monday, Spotify stated that it is experimenting with a new feature that will allow musicians to promote their non-fungible tokens (NFTs) on their profiles.
According to the Swedish audio streaming and media services provider, the new option is only available to a restricted set of musicians. According to the company, the test is presently available to a restricted group of Android users in the United States.
Users who participate in the test will be able to see NFT previews on an artist’s profile page. They can then tap through to explore and learn more about certain NFTs and purchase them from external marketplaces.
As part of the test, Spotify stated that it would not charge any fees for NFT sales. The firm stated that it is simply experimenting with a mechanism for artists selling NFTs to promote them on its platform. Spotify claims that the data will help them decide whether or not to launch an exclusive feature for all artists.
The test is being carried out in response to demands from Spotify’s industry partners. According to the firm, the test is part of its ongoing efforts to help artists strengthen their relationships with fans both on and off its platform.
The Music Industry and Blockchain
Spotify revealed ambitions to integrate blockchain technology and NFTs into its streaming business in March of this year. The music streaming behemoth posted two job ads indicating it wants to hire people for early-stage Web3 initiatives.
The proposed system uses blockchain technology to build a shared record of rights and revenues among music labels, musicians, and other industry actors.
Streaming services are quite significant in people’s life. Apple Music, YouTube, and Spotify have grown inextricably linked to the industry in terms of music. Blockchain-based platforms and NFTs have emerged as a critical component that takes advantage of how services like Spotify and YouTube play songs to benefit artists on their platforms.
NFTs can represent anything of value, from a work of art to a song and everything in between. Because of its non-fungible nature, each token is unique, allowing for the preservation of ownership rights on the blockchain.