Spotify is the latest company to move towards NFTs and other Web3 elements, promising to become the first major music platform to do so. With so many companies making this type of transition, it now seems clear that NFTs are anything but a passing trend. Spotify is one of the most popular music streaming apps on the planet, and this change could introduce millions of people to NFTs for the very first time. But how exactly would NFTs work on a music platform? Are the two art forms really compatible?
Job Postings Reveal Spotify’s Plans
Spotify’s recent job postings make it clear that they are searching for new employees who have experience with Web3. The assumption is that they’re planning to integrate NFTs, cryptocurrencies, and similar elements. The rest is up for speculation, as we don’t really know how or when these plans will become a reality for Spotify.
What Could NFTs Look Like on Spotify?
Many people have been asking how a music platform could integrate NFTs. One possibility has to do with album covers. Although the platform streams digital music rather than distributing physical records and CDs, users still see an image of an album cover when they play music. These album covers could be turned into NFTs.
For example, someone might choose to spend a little extra on a “limited edition” digital album cover that appears whenever they play their favorite tracks. These album covers could then be sold to investors and collectors – much like old vinyl records today.
Of course, a more straightforward approach could simply be to accept NFTs and cryptocurrencies as payment for streaming services. In addition, Spotify could compensate artists for their royalty fees in crypto rather than fiat currencies.
Spotify’s Shares are Dropping
This move towards NFTs might be one of slight desperation. It’s no secret that Spotify isn’t doing too well in the stock market, and their shares are down more than 40% over the past year. The platform is still extremely popular, but investors have been cautious so far – with some claiming that the company is extremely undervalued.
The dip might be explained by the company’s somewhat controversial stance on free speech, as it has stood behind Joe Rogan amidst calls to “cancel” the popular podcaster. The backlash led many musicians to leave Spotify in protest.
While this isn’t exactly encouraging news, it might explain why Spotify is so eager to adopt Web3 elements like NFTs in the future. After all, the decentralized nature of crypto assets makes them essentially “uncancelable.” Spotify might also be playing off its newfound reputation as a rebel with these decentralized assets. One thing’s clear: Spotify probably hopes that this new move will help raise its share prices once again.