Tune.FM is emerging as a game-changer in the music streaming industry by leveraging cryptocurrency to offer artists significantly higher earnings compared to traditional streaming services like Spotify and Apple Music. Unlike conventional platforms that rely on subscription models, Tune.FM operates as a decentralized streaming service on the web3 framework, utilizing its own digital currency, JAM tokens, for transactions. Users pay for each song they stream with these tokens, which can be purchased directly from Tune.FM’s website. Additionally, users can earn more JAM tokens by listening to promoted tracks.
For artists, Tune.FM offers a much more lucrative payment structure. They earn $0.01 per minute of their music streamed, which represents a substantial increase over the payouts from other services. For example, Spotify pays between $0.003 and $0.005 per stream, while Apple Music pays $0.01 per stream. Tune.FM also enhances its revenue opportunities for artists by offering NFTs and other collectibles.
The startup has recently secured a significant $50 million Token Purchase Program commitment from Global Emerging Markets (GEM), which will involve GEM purchasing $50 million worth of JAM tokens over the next two years. This investment provides Tune.FM with the flexibility to convert these tokens into cash whenever needed. Backed by prominent asset managers and angel investors, including Andy Hertzfield, Tune.FM is poised for significant growth.
Tune.FM charges a 10% fee on any transactions made using JAM tokens on its platform, but it has the option to convert these tokens into cash through traditional cryptocurrency exchanges whenever necessary. The company plans to use the invested funds to expand its tech team, develop a metaverse site for hosting music festivals, and broaden its platform to support more artists.
Andrew Antar, the co-founder and CEO of Tune.FM, brings a background as a classically trained violinist and music directory founder. His vision for Tune.FM is to create a revolutionary music streaming model that addresses long-standing issues in the industry, such as unfair artist compensation and licensing challenges. By utilizing web3 and tokenization, Tune.FM aims to disrupt the existing market and offer a more equitable solution for artists and listeners alike.
Despite facing competition from established streaming services and free platforms like TikTok and YouTube, Antar believes Tune.FM’s unique approach and innovative business model will set it apart. The company is focused on growing its user base, which has recently reached nearly 20,000 monthly active users, and securing deals with well-known artists and labels.
