Sound Raises $20 Million to Help Artists Earn a Living
Sound, a Web3 music platform, has secured $20 million in funding to support artists in making a sustainable income from their music. Led by venture capitalist firm Andreessen Horowitz (a16z), the Series A round involved participation from notable figures such as rapper Snoop Dogg, artist and producer Ryan Tedder, and actor Ashton Kutcher’s firm Sound Ventures. Sound aims to disrupt the revenue models of Web2 streaming services like Spotify and Apple Music by allowing artists to mint their songs as non-fungible tokens (NFTs) on the blockchain and sell them directly to fans. The company has already helped music creators generate $5.5 million in sales since its beta launch in 2022 and is now opening access to the public.
Key Points:
– Sound raises $20 million in funding to support artists in earning a sustainable income from their music.
– The company’s platform allows artists to mint their songs as NFTs on the blockchain and sell them directly to fans.
– Sound aims to disrupt the revenue models of Web2 streaming services like Spotify and Apple Music.
– Artists have generated $5.5 million in sales since Sound’s beta launch in 2022.
– The funding will be used to expand Sound’s artist relations, engineering, and marketing teams as it opens its platform to the public.
Web3 Empowers Artists to Earn Fair Compensation
David Greenstein, co-founder of Sound and former product manager at streaming service Pandora, highlights the diminishing earnings of artists in the era of music subscription services. Platforms like Spotify pay artists only $0.003 per stream, leading to a significant reduction in their revenue. Inspired by Radiohead’s “pay what you want” revenue model for their 2007 album, Sound aims to empower listeners to fairly compensate artists at their own discretion. By utilizing Web3 technologies, such as Ethereum and layer 2 scaling solution Optimism, Sound enables direct payments for songs, eliminating the need for intermediaries. Artists can upload their music, mint it on-chain, and sell it for ETH, without requiring fans to create a wallet or support fiat payments.
Key Points:
– Artists’ earnings have diminished with the rise of music subscription services.
– Sound wants to empower listeners to fairly compensate artists.
– Web3 technologies enable direct payments for songs, eliminating intermediaries.
– Artists can upload their music, mint it on-chain, and sell it for ETH.
– Fans are not required to create a wallet or support fiat payments.
Expanding Opportunities for Artists in the Music Industry
Sound plans to use the funding to expand its artist relations, engineering, and marketing teams as it opens its platform to the public. The company aims to provide a career path for talented artists, regardless of their background or financial status. By offering a platform that allows artists to retain 100% of their revenue, Sound aims to level the playing field and give artists control over their relationships with their listeners. The company’s approach is resonating with artists and producers who are seeking to break free from the traditional structures and revenue models of the music industry.
Key Points:
– Sound will use the funding to expand its artist relations, engineering, and marketing teams.
– The company aims to provide a career path for talented artists.
– Artists can retain 100% of their revenue by using Sound’s platform.
– Sound gives artists control over their relationships with listeners.
– The company’s approach is appealing to artists seeking to disrupt the music industry.
Hot Take
Sound’s innovative Web3 music platform has the potential to revolutionize the music industry by empowering artists to earn a living from their work. By utilizing blockchain technology and eliminating intermediaries, Sound allows artists to retain full control over their revenue and relationships with fans. This approach challenges the traditional revenue models of Web2 streaming services and provides a more sustainable and equitable solution for artists. With the support of $20 million in funding, Sound is well-positioned to expand its platform and support even more artists in their careers. This exciting development could mark a significant shift in the music industry, giving power back to the creators and ensuring they receive fair compensation for their talent.
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