Tune.FM Raises $70 Million for Web3 Music Streaming Platform

TLDR:

• Tune.FM secured $20 million in funding from LDA Capital
• The platform offers artists 90% of streaming revenue
• Tune.FM uses web3 technology and the JAM token on Hedera Hashgraph
• The platform includes an NFT marketplace for exclusive content
• Tune.FM plans to expand with mobile apps and major label content

Tune.FM, a San Francisco-based web3 decentralized music streaming platform, has recently secured a total of $70 million in funding to advance its mission of empowering artists and revolutionizing the music industry.

The company raised $20 million from LDA Capital in January 2024, followed by an additional $50 million from Global Emerging Markets in September 2024.

Founded by musicians and brothers Andrew and Brian Antar, Tune.FM aims to address the longstanding issue of artist compensation in the music streaming industry.

The platform utilizes blockchain technology, specifically the Hedera Hashgraph network, to offer artists up to 90% of their streaming revenue.

This is a significant increase compared to traditional streaming services like Spotify, which reportedly distributes about 70% of its revenue to rightsholders.

Web 3 Features

Tune.FM’s platform is powered by the JAM token, which enables micropayments for streaming royalties. Artists receive these payments for every second their music is streamed on the platform.

Tune.FM features an NFT marketplace where musicians can mint and sell digital assets and collectibles, offering fans exclusive perks such as backstage passes, meet and greets, and VIP packages.

The recent funding will be used to further develop the platform and provide liquidity for the JAM token. Tune.FM plans to expand its offerings with mobile apps for iOS and Android, as well as onboard major label content to provide users with a comprehensive music library comparable to established streaming services.

One of the key features of Tune.FM is its user-friendly approach to blockchain technology. Users can create an account and start listening to music immediately, with a blockchain wallet automatically created for them.

This streamlined process aims to simplify onboarding for non-crypto users, making the platform accessible to a wider audience.

Music Industry

The investment in Tune.FM comes at a time when the global music streaming market is projected to reach a revenue of approximately $34 billion by 2027, according to Statista.

Tune.FM is not alone in exploring the intersection of blockchain and music. Other platforms, such as Royal, backed by venture capital firm a16z, allow fans to co-own music copyrights by purchasing NFTs tied to songs. Similarly, eMusic, a long-standing digital music platform, introduced its own cryptocurrency in 2020 with promises of direct revenue to artists.

The recent funding rounds have attracted notable investors to Tune.FM. In addition to LDA Capital and Global Emerging Markets, the platform’s backers include Animoca Brands, Mindfund, The HBAR Foundation, Broad Street Angels, and angel investors such as Andy Hertzfeld, co-creator of the Apple Macintosh.

As Tune.FM continues to develop its platform, it has ambitious plans for the future. The company aims to create a “music festival metaverse” where fans can attend token-gated virtual live shows.

This vision aligns with the growing trend of superfan platforms, which cater to the most dedicated fans of specific artists by offering exclusive experiences and deeper community engagement.