Blockchain-based music streaming platform Tune.Fm (CRYPTO:JAM) has secured a $50 million investment from Global Emerging Markets, bringing its total funding to $80 million.
The new capital will be used to provide liquidity for its JAM token, which rewards artists and users on the platform.
Previous investors in Tune.Fm include LDA Capital, Alpha Token Capital, Block Alpha, Animoca Brands, The HBAR Foundation, and GDA Capital.
Tune.Fm utilises the Hedera (CRYPTO:HBAR) blockchain to offer music streaming services integrated with a non-fungible token (NFT) marketplace.
Artists are compensated with micropayments for every second their music is streamed.
In addition, users can earn tokens by discovering and listening to newly promoted tracks.
“Users can create an account and start listening to music immediately; no third-party wallet is required beforehand,” a spokesperson explained, emphasising the platform's user-friendly approach for non-crypto users.
The platform is not alone in exploring blockchain's potential in the music industry.
Another example is Royal, which allows fans to co-own music copyrights by purchasing NFTs linked to specific songs.
Backed by venture capital firm Andreessen Horowitz (a16z), Royal has featured artists such as rapper Nas, who released NFTs in 2022.
Other established music platforms have also entered the blockchain space.
In 2020, eMusic launched its own cryptocurrency, the eMU token, to provide artists with direct revenue, advertising that artists could earn up to 50% of their songs' revenue.
The global music streaming industry has evolved significantly from CDs to digital streaming platforms.
According to Statista, the music streaming market is projected to reach $34 billion by 2027.
Despite this growth, Tune.Fm criticised traditional streaming platforms, stating, "The problem with today’s major streaming platforms is that large corporations reap the lion’s share of the profits, leaving artists with a small piece of the pie."
Platforms like Spotify reportedly pay artists between $0.003 and $0.004 per stream, with earnings only starting after 1,000 streams within a year.
At the time of reporting, the Tune.Fm (JAM) price was $0.00006973.