Spotify May Add Blockchain Crypto NFTs to Streaming Service

New York City: Spotify Technology SA said it’s exploring the use of blockchain technology in the music industry, and is mulling the creation of its own cryptocurrency. The streaming giant joined the Blockchain for Music Coalition this week, which includes a number of startups focused on building tools for artists to better control their work and get paid more. The group, which will advise new projects, counts Facebook Inc., Tencent Holdings Ltd. and Sony Corp. as members.

Spotify Technology SA said it’s exploring the use of blockchain technology in the music industry, and is mulling the creation of its own cryptocurrency.

The Swedish streaming service is working with the Blockchain for Music Coalition to explore nonfungible tokens (NFT), which are used for collectables such as baseball cards or airline boarding passes. The group also has started an initiative called New Token Standardization to create standards around NFTs so they can be used by different platforms.

In an interview with CoinDesk, Spotify chief executive officer Daniel Ek said he believes “the whole world will soon have access to high quality music” through blockchain-based streaming services such as Tidal’s that charge $10 per month but don’t include ads.”

The streaming giant joined the Blockchain for Music Coalition this week, which includes a number of startups focused on building tools for artists to better control their work and get paid more. The group, which will advise new projects, counts Facebook Inc., Tencent Holdings Ltd. and Sony Corp. as members.

Spotify is part of a coalition of companies that are working on blockchain-based solutions to help artists get paid more. The group includes Facebook Inc., Tencent Holdings Ltd., and Sony Corp., according to a press release Thursday from the Blockchain for Music Coalition.

The move comes after Spotify’s Chief Executive Officer Daniel Ek said last month that his company was exploring ways to use blockchain technology for its business models and customer experience, including potentially allowing users to buy music directly from artists through their apps or subscriptions based on how much time they spend listening each day (the company also plans to launch its own cryptocurrency).

Spotify is also looking into nonfungible tokens, or NFTs — digital collectibles that have become popular among players of video games like Fortnite. NFTs are being used by some artists to sell virtual concert tickets or limited editions of their music, allowing fans to buy unique copies that can be verified on a ledger as authentic.

While Spotify hasn’t made any official announcements about its blockchain plans yet, it’s clear the company wants to stay ahead in an increasingly crowded market for streaming services and music streaming apps like Apple Music and Tidal (now owned by Jay-Z).

“We’re passionate about finding new ways to bring value to music creators and realize the potential within the broader music ecosystem,” said Claude Zellweger, global head of studios at Spotify. “We believe there are exciting opportunities and challenges ahead in bringing together emerging technologies with a global community of musicians and fans at scale.”

Spotify, the world’s largest music streaming service, has been working on blockchain projects for some time and recently announced that it would be launching an online marketplace for nonfungible tokens (NFTs).

Nonfungible tokens are digital collectibles that have become popular among players of video games like Fortnite. In these games, players can purchase items with real-world money and then trade them between each other on platforms like Steam or GOG Galaxy. However, there is no way to link these items back to their owners unless they make their way into another game or platform where they can be traded again — which isn’t always possible if you’re selling your NFTs at market value instead of buying them outright from someone else who purchased it from someone else first!

Spotify is working on several blockchain-related projects; it’s not clear what they’ll be

The company is also working with the Blockchain for Music Coalition (BMC), which includes a number of startups focused on building tools for artists to better control their work and get paid more.

The BMC has been active in recent years, helping to establish standards for how DRM and other security measures should operate within blockchain networks. It’s unclear if this new partnership will have any impact on Spotify’s own efforts—but it does show that some of the world’s largest companies are still exploring ways to incorporate blockchain technology into their business models.