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Many people believe NFTs are going to change the way various industries work, and that's why they've skyrocketed in popularity in a few years. The music industry is one of the many affected by this NFT craze. NFTs are popping up left and right in the music industry. Artists are making them, companies are using them, and music festivals are using them to connect with fans. Nobody wants to be left behind. One of these big names dabbling with the concept of NFTs is Spotify.
NFTs in Spotify
Everyone in the music industry has come across Spotify one way or another. The Swedish audio streaming and media services company gained its name as one of the leading music streaming service providers shortly after it entered the market at a period when the internet was becoming a center for music. But as artists are now turning to NFTs to showcase their talents, Spotify is also looking to provide the functionality to artists on its platform. NFTs (Non-Fungible Tokens) are a special type of digital asset that can be used to represent a physical item. Although majorly art pictures, they can also be in the form of a video or an audio recording. Artists are able to maintain full control over the distribution of their work and receive a portion of the proceeds whenever their creations are resold thanks to NFTs. Spotify is currently conducting an NFT compatibility test with a select group of artists in the United States. This new feature will allow artists to display their NTFs on the platform. When users click on it, a collection of NFTs that they assess will be revealed to them. Although the platform does not support GIFS or videos, they can only see a static pictures without sound. Users also have the option of clicking a button that leads directly to the page on OpenSea where the NFT may be purchased. This is not the first time Spotify is exploring the blockchain tech space. The company was an early collaborator in Facebook's cryptocurrency project, Diem, which has since been discontinued. The aim back then was to use blockchain technology and cryptocurrencies to pay artists directly.
What Does It Mean for Spotify?
Spotify is another big internet company now venturing into this growing sector. With this feature, the company can extend its reach to artists willing to take advantage of the NFT space. The company's revenue continues to grow every year, and the integration of NFTs is expected to keep this trend going. Although data shows that the interest in the sector is already beginning to decline, its use is expected to continue well into the future. Even just the general excitement about NFTs is sufficient to speak positively about Spotify. Other tech companies, such as Reddit and Meta's Instagram, are actively experimenting with NFTs on their platforms. If completely integrated, Spotify would be just the second platform after Twitter to integrate NFTs.