TuneFM, a decentralized Web3 music streaming and collectibles platform, has announced that it has secured a significant $50 million in funding from Global Emerging Markets (GEM) Group. This latest investment comes just eight months after the platform raised an earlier $20 million, indicating a robust interest in the potential of Web3 applications in the music industry.
The funding is intended to bolster TuneFM's mission to provide musicians with a more lucrative revenue model compared to traditional streaming platforms. Operated on 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 boasts a unique payout structure, allowing artists to earn one cent for every minute their music is streamed, a significant increase over the typical $0.003 to $0.005 per stream seen on services like Spotify.
The payout rates vary based on several factors, including subscription type and geographical location. One analysis suggests that artists could potentially earn up to 100 times more on TuneFM than on conventional streaming providers.
Further, payments on TuneFM are conducted using a native cryptocurrency called JAM tokens, which fans can use to access music and incentivize new listeners through play-to-earn mechanics. This innovative token economy is designed to increase the discovery of new tracks, thereby broadening an artist's audience.
To enhance user engagement further, TuneFM is set to launch desktop applications for both Mac and Windows, supplementing its existing mobile applications on iOS and Android. Despite the inherent volatility associated with cryptocurrency, the emergence of platforms like TuneFM is indicative of an evolving landscape in music streaming. For a closer look at how TuneFM operates, visit their detailed explanation here.