TuneFM, a decentralized Web3 music streaming and collectibles platform, has announced a major milestone by securing $50 million in funding from the Global Emerging Markets (GEM) Group. This investment comes just eight months after the platform raised an earlier $20 million, showcasing a robust interest in the potential of Web3 applications within the music industry.
The latest funding round will be instrumental in advancing TuneFM's mission to provide a more fruitful revenue model for musicians compared to traditional streaming platforms. By leveraging the Hedera Hashgraph blockchain, TuneFM aims to facilitate higher royalty payments for artists through streaming micropayments and the sale of digital music collectibles. The platform's unique payout structure allows artists to earn one cent for every minute their music is streamed, an increase in comparison to the average payout ranging from $0.003 to $0.005 per stream on services like Spotify.
Payout rates on TuneFM are influenced by factors including subscription type and geographical location, with some analyses suggesting that artists could potentially earn up to 100 times more through TuneFM compared to conventional streaming service providers.
Additionally, TuneFM employs a native cryptocurrency, known as JAM tokens, for transaction purposes. Fans can use these tokens to access music and incentivize new listeners via play-to-earn mechanics. This innovative token economy is designed to enhance music discovery, thereby broadening the audience for artists.
In a bid to further boost user engagement, TuneFM is also planning to launch desktop applications for both Mac and Windows, complementing its existing mobile apps available on iOS and Android. Despite the inherent volatility associated with cryptocurrency, the emergence of platforms like TuneFM signifies a notable shift in the music streaming landscape. For more information on how TuneFM operates, visit their detailed explanation here.