Hedera-Based Tune.FM Raises $20M amid Music Industry Shake Up

Hedera-Based Tune.FM Raises $20M amid Music Industry Shake Up

UTC by Mayowa Adebajo · 3 min read
Hedera-Based Tune.FM Raises $20M amid Music Industry Shake Up
Photo: Unsplash

Tune.FM believes that the majority of streaming platforms currently available are not shaped in a way that appreciates artists enough.

Tune.FM, a web3 decentralized music streaming platform, has recently announced that it has raised $20 million in capital. It received the investment from LDA Capital, a private alternative investment group, as part of its broader effort to help musical artists earn better for their work.

With this development, LDA Capital joins a long list of Tune.FM’s investors which consist of notable names like Animoca Brands, the HBAR Foundation, Broad Street Angels, and even angel investors such as the legendary co-creator of the Apple Macintosh, Andy Hertzfeld.

Tune.FM Aims to Disrupt the Music Industry Standard

The Tune.FM platform is integrated with a music NFT marketplace, which enables artists to monetize their fanbase directly. They can do this through the micropayments that musicians receive in Tune.FM’s native JAM token (JAM) when fans stream their work. Musicians can also earn when fans mint non-fungible tokens (NFTs) for digital music assets and collectibles.

However, Tune.FM believes that the majority of streaming platforms currently available are not shaped in a way that appreciates artists enough. Hence, the reason behind its commitment to shake up the current standard.

“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,” the platform wrote.

Given this, Tune.FM says it will be offering artists up to 90% of their streaming revenue. Notably, that increase represents a whopping ten times difference from what is currently obtainable with most traditional streaming services.

The platform looks to be doing justice to its motto:

“When the music gets played, the artist gets paid.”

LDA Capital also echoes the same sentiment. The investor wrote in a part statement that:

“This investment signifies our commitment to the future of the music industry, one where artists are at the center stage, and their art is valued and rewarded accordingly.”

Eyes on Expansion

Looking ahead, the $20 million investment may have set the platform on the right path for sustainable growth and impact. Tune.FM confirms that plans are already in motion to launch a mobile app on iOS and Android. It also adds that the plans will include a desktop application for Mac and Windows as well.

Furthermore, the platform also says it is currently eyeing the possibility of negotiating major licensing deals.  It says the deal will allow it to onboard the full catalogue of major label content typically available on Spotify and Apple Music.

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