Tune.fm has announced $20 million in new funding. Photo Credit: Tune.fm
Web3 streaming platform Tune.fm has disclosed “a $20 million commitment of capital” and plans to score major label licensing deals.
Tune.fm only recently revealed the multimillion-dollar tranche via social media as well as a formal release, with several crypto and blockchain publications having promptly covered the news from there.
Founded in 2011 by brothers Andrew and Brian Antar – the latter of whom is CEO and holds the same position at companies called Promo Power Group and Shipmate Fulfillment – Tune.fm says its Hedera Hashgraph-built JAM token and adjacent “micropayments technology” afford artists “instant royalties” for on-platform streaming.
The overarching model also enables creators to pull in between 10 and 100 times more royalties than they would on traditional services like Apple Music and Spotify, according to Tune.fm, which operates a music non-fungible token (NFT) marketplace as well.
Additionally, on the superfan front, Tune.fm has emphasized that its offerings further encompass backstage passes, meet-and-greet opportunities, behind-the-scenes content, merch, and more.
Returning to the $20 million commitment, Madrid-based alternative investment group LDA Capital is said to have provided the cash, joining existing Tune.fm backers including Animoca Brands, Andy Hertzfeld, and Union League of Philadelphia affinity club Broad Street Angels.
Moving forward, the Web3 music service intends to put the funding towards attracting additional users, building out its team, launching new products (among them, at least in the long term, “a music festival metaverse”), and enhancing “liquidity for the JAM token across international markets,” higher-ups signaled.
Expanding on these points, a Tune.fm mobile app, for both iOS and Android, is expected to roll out “soon,” per execs. Likewise on the horizon is a desktop app for Mac and Windows – besides, most significantly, licensing discussions with the decidedly monetization-minded Big Three.
“Tune.fm is also planning to negotiate licensing deals to onboard the full catalog of major label content typically available on Spotify and Apple Music,” the business spelled out. “Labels and publishers can also leverage Tune.fm’s technology to dramatically increase their earnings for their artists’ music.”
Looking ahead to the remainder of 2024, it will, of course, be worth keeping an eye out for developments regarding Tune.fm’s major label talks.
As highlighted, Universal Music, Sony Music, and Warner Music have for some time now been working in earnest to squeeze more money out of streaming and, relatedly, capitalize upon diehard support. Superfan app Fave detailed a $2 million raise in October with backers including Warner and Sony.
More recently, December saw Web3 artist-community platform Medallion unveil a $13.7 million Series A and an ambitious 2024 roadmap.
