Tune.FM Secures $50 Million in Funding to Revolutionize Web3 Music Streaming

Tune.FM Secures $50 Million in Funding to Revolutionize Web3 Music Streaming

San Francisco, CA - September 13, 2024 - Tune.FM, a decentralized music streaming platform based in San Francisco, has successfully raised $50 million in its latest funding round, pushing its total funding to $80 million. This significant financial boost will enhance liquidity for its JAM token and further support its innovative streaming platform.

The JAM token, which operates on the Hedera Hashgraph, underpins Tune.FM’s web3-based approach to music streaming. Unlike traditional streaming services where artists receive a small fraction of the revenue, Tune.FM promises to allocate 90% of streaming revenue directly to artists through its token. This model contrasts with industry norms, such as those employed by Spotify, which distributes approximately 70% of its revenue to rights holders, who then manage further distribution.

The recent investment, reported by crypto news outlets including Cointelegraph, was led by Global Emerging Markets, complementing earlier funding from LDA Capital, which contributed $20 million in January. Tune.FM’s other prominent backers include Alpha Token Capital, Block Alpha, Animoca Brands, The HBAR Foundation, and GDA Capital.

Tune.FM’s mission addresses a prevalent issue in the music industry: the disproportionate share of profits retained by major corporations, leaving artists with minimal earnings. The platform's approach is designed to ensure that artists benefit more directly from their work.

The rise of blockchain technology in music streaming is part of a broader trend toward superfan engagement. Universal Music Group has identified that about 30% of streaming subscribers are superfans, and is focused on enhancing artist-fan relationships. Similarly, platforms like FanCircles and SoundCloud are exploring new ways to connect artists with their most dedicated fans, while South Korea’s HYBE is leveraging superfans to drive growth through its Weverse app.

Tune.FM's latest funding round underscores the growing interest in blockchain solutions for the music industry and reflects the increasing demand for platforms that foster deeper connections between artists and their audiences.