Streaming Music Micropayments
Tune.fm is a tokenized music economy that enables artists to get paid directly for every stream of their music and fans to participate in curation with an incentivized design.
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Overview
Tune.fm is a music platform that disintermediates traditional streaming providers allowing listeners to pay artists directly and instantaneously.
Challenge
Performing ad-hoc, real-time microtransactions is difficult to achieve with fiat payment rails and requires a cryptocurrency that is both fast and cost-effective.
Solution
Hedera was ultimately the platform of choice for its stability and high-throughput of the cryptocurrency, HBAR.
Tune.fm (formerly Hearo.fm) wants to help artists get paid. While streaming has opened up access to music it still results in artists getting paid too little, too late.
On average, labels take 70% of the cut, while the streaming provider takes roughly 30%. This presents the artists with a fraction with payouts typically taking 6 months to reach their pocket.
Tune.fm wants to shift the model, enabling artists to freely post their music and listeners to pay them directly. To make it happen, they turned to cryptocurrency as a mechanism to disintermediate the high cost of traditional payment rails.
HBAR, the Hedera network’s native cryptocurrency lends itself well to these type of peer-to-peer microtransactions. From the efficiency of hashgraph, the compute costs are low and flat, making transacting with less then a cent – the typical cost per song stream – economically viable.
In the future, the decentralized streaming platform will look to encourage artists to reward new listeners by further incentivizing them with Tune.fm’s smart contract token, Jam.