TuneFM, a decentralized Web3 music streaming and collectibles platform, has announced it has secured a significant $50 million in funding from Global Emerging Markets (GEM) Group. This funding comes just eight months after the platform raised an earlier $20 million, underscoring a robust interest in the potential of Web3 applications within the music industry.
The investment is aimed at bolstering TuneFM's mission to provide musicians with a more profitable revenue model compared to traditional streaming platforms. Powered by the Hedera Hashgraph blockchain, TuneFM intends to facilitate higher royalty payments for artists through streaming micropayments and the sale of digital music collectibles. The platform features a unique payout structure, allowing artists to earn one cent for every minute their music is streamed, a significant increase from the typical $0.003 to $0.005 per stream found on services like Spotify.
Payout rates on TuneFM vary based on multiple factors, including subscription type and geographical location. Some analyses suggest that artists could potentially earn up to 100 times more on TuneFM than on conventional streaming providers.
Additionally, payments on TuneFM are conducted using a native cryptocurrency, known as JAM tokens, which fans can utilize to access music and incentivize new listeners through play-to-earn mechanics. This innovative token economy aims to enhance the discovery of new tracks, thereby expanding an artist's audience.
To further boost user engagement, TuneFM plans to launch desktop applications for both Mac and Windows, complementing its existing mobile apps on iOS and Android. Despite the volatility associated with cryptocurrency, the rise of platforms like TuneFM is representative of a changing landscape in music streaming. For more information on how TuneFM operates, visit their detailed explanation here.