TuneFM, a decentralized Web3 music streaming and collectibles platform, has announced a significant milestone with the securing of $50 million in funding from the Global Emerging Markets (GEM) Group. This latest funding round comes just eight months after the platform raised an earlier $20 million, reflecting a strong interest in the capability of Web3 applications within the music industry.
The investment is expected to play a key role in advancing TuneFM's mission to create a more profitable revenue model for musicians compared to traditional streaming platforms. By utilizing the Hedera Hashgraph blockchain, TuneFM could facilitate higher royalty payments for artists through streaming micropayments and the sale of digital music collectibles. Under this unique payout structure, artists earn one cent for every minute their music is streamed, which is a considerable improvement compared to the average payment of $0.003 to $0.005 per stream on platforms like Spotify.
Payout rates on TuneFM are influenced by various factors, including subscription type and geographical location. Some analyses indicate that artists could potentially earn up to 100 times more through TuneFM than with conventional streaming services.
In addition to its innovative payment model, TuneFM employs a native cryptocurrency, known as JAM tokens, for transactions. These tokens can be utilized by fans to access music and incentivize new listeners through play-to-earn mechanics, further enhancing music discovery and expanding the audience for artists.
To increase user engagement, the platform is set to launch desktop applications for both Mac and Windows, with existing mobile apps available on iOS and Android. Despite the inherent volatility of cryptocurrency, the emergence of platforms like TuneFM marks a notable change in the landscape of music streaming. For more information on how TuneFM operates, visit their detailed explanation here.