Streaming
MeMusic's business Overview in Music Streaming
Last updated
MeMusic's business Overview in Music Streaming
Last updated
As MeMusic challenges Spotify and other streaming service providers, we are set on building a sustainable business model and fundamentals. Through this approach, not only are we creating revenue streams for artists but also resolving the challenges that streaming service providers face.
While Spotify started its financial turnaround by generating profits in 2021, for years the company has been struggling to generate profits with the pile-up costs in royalties. Therefore, despite the magnitude of revenue, Spotify had to face a challenge in building a profitable business model by relying on advertisements. While the future prospects from financial analysts are bright, the lack of various revenue streams will be a challenge for Spotify and its competitors.
However, Spotify will continue to face complaints from artists about the lack of transparent, fair compensation to the artists. Spotify maintains as the world’s largest streaming giant, however their pay-per-stream is on the lower-end when compared to Amazon Music, Tidal, YouTube Red, and Apple Music.
At MeMusic, building a user/artist friendly streaming service is our primary interest. Streaming is the major form of enjoying and consuming entertainment consumers. As a business, however, we divert our attention towards building other services for the artists. This diversion allows artists to expand their revenue streams and fans to expand their interactions. As profitability is relatively less of importance in the streaming service, MeMusic can allow to build a true decentralised streaming service without compromising the artist payouts or user conveniences.
MeMusic's streaming application will have various advantages when compared to the current mainstream competitors such as Spotify or Apple Music. MeMusic is focusing on providing features that has been unseen in the mainstream service providers.
At MeMusic, we wish to create a highly usable and user-centric product. As our motto, 'Personalized Music Experience through MeMusic', MeMusic wishes to curate the journey of enjoying music for each user.
"When designing MeMusic, we take all the achievements of the long journey travelled by giants like Spotify and Pandora, complementing the best of such platforms like Twitch and Patreon, Soundcloud and others. Our goal is not just another music and entertainment service or social network, but creating a service with music at its core: creating, listening, interacting with fans and discovering and growing/nurturing new talents. My personal goal is to create a service that will provide the best experience of interacting with music regardless of the country or device of the user," Andrew Danilov, Chief Product Officer.
Most streaming service providers resort to pro-rata method for calculating royalties for the artists. This pro-rata method is designed to benefit the artists that make the most contributions to the provider's growth. Such mechanism means that there is no direct correlation between a user's fandom and contribution.
Through the 'Pro-Artist' distribution, MeMusic distributes royalties based on 'per stream value' This allows streaming subscriptions from each user to be distribute towards the artist they stream for.
MeMusic increases transparency of the royalty distribution through blockchain implementation.
MeMusic is the first streaming application that reward users for their contributions. As users stream music on the application, they are able to mine for MeMusic tokens. This will allow for them to use the tokens to purchase NFTs, purchase artist tokens, or store for value.
