TuneFM, a decentralized Web3 music streaming and collectibles platform, has announced that it has secured $50 million in funding from the Global Emerging Markets (GEM) Group. This investment comes merely eight months after TuneFM raised an earlier $20 million, indicating strong interest in the potential of Web3 applications in the music industry.
The funding will be directed towards enhancing TuneFM's objective of providing musicians with a more lucrative revenue model compared to traditional streaming platforms. Utilizing the Hedera Hashgraph blockchain, TuneFM seeks to facilitate higher royalty payments for artists through streaming micropayments and the sale of digital music collectibles. The platform boasts a unique payout structure, which allows artists to earn one cent for every minute their music is streamed—an increase from the average payout on services like Spotify, which typically ranges from $0.003 to $0.005 per stream.
Payout rates on TuneFM are contingent on various factors, including subscription type and geographical location. Some analyses suggest that artists could potentially earn up to 100 times more on TuneFM compared to conventional streaming providers.
Additionally, TuneFM employs a native cryptocurrency, known as JAM tokens, for payments. Fans can utilize these tokens to access music and incentivize new listeners through play-to-earn mechanics. This innovative token economy aims to enhance music discovery, thereby expanding an artist's audience.
In a further bid to 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 inherent volatility associated with cryptocurrency, the emergence of platforms like TuneFM marks a shift in the music streaming landscape. For more information on how TuneFM operates, visit their detailed explanation here.