San Francisco-based web3 decentralized music streaming platform Tune.FM has secured another USD $50 million in funding, bringing its total funding to date to $80 million.
The fresh capital “will boost liquidity for our JAM token, powering our decentralized streaming platform. Artists earn more, listeners get rewarded,” Tune.FM said in a social media post on Friday (September 13).
Powered by the JAM token on Hedera Hashgraph, Tune.FM employs web3 technology, tokenization, and distributed ledger systems.
Unlike traditional platforms where artists receive a fraction of streaming profits, Tune.FM claims to pay artists 90% of their streaming revenue through its JAM token. This stands in contrast to industry giants like Spotify, which distributes “nearly 70%” of its music revenue to rightsholders, who then further distribute it to artists and songwriters. Tune.FM aims to change this model by directly rewarding artists for their work, according to earlier announcements.
“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.”
Tune.FM
The latest injection, as reported by crypto trade news outlets including Cointelegraph, came from Global Emerging Markets. Back in January, Tune.FM secured $20 million in funding from global investment group LDA Capital. The company also counts Alpha Token Capital, Block Alpha, Animoca Brands, The HBAR Foundation and GDA Capital among its backers, Cointelegraph said.
“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,” Tune.FM was quoted by the news outlet as saying.
The investment comes as blockchain technology and music platforms increasingly intersect, with the rise of superfan-focused platforms gaining attention. These platforms offer deeper engagement between artists and their most dedicated fans through exclusive experiences and interactions.
Universal Music Group estimated in July 2023 that “about 30%” of streaming subscribers are superfans. UMG Chairman and CEO Sir Lucian Grainge recently highlighted the company’s focus on enhancing artist-fan relationships through superfan experiences, aiming to increase revenue for all artists.
About two weeks ago, UK-headquartered SaaS platform FanCircles, which connects artists directly with their fans, announced that it had raised $2 million in its latest funding round.
Last month, streaming platform SoundCloud entered the merchandise market by launching the SoundCloud Store, aiming to leverage the influence of superfans.
Meanwhile, South Korean entertainment giant HYBE has been relying on superfans to drive its growth. HYBE’s superfan app, Weverse, saw a 17.4% revenue increase last year, mainly fueled by fan spending on merchandise and exclusive content subscriptions. HYBE recently introduced subscription-based memberships to Weverse.
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