Spotify testing NFT-Based Initiative: Will it unlock new revenue-generating opportunities for brands?
Published: February 25, 2023
Spotify, an audio streaming platform, is testing a new feature called "token-enabled playlists." It enables holders of non-fungible tokens to connect their wallets and listen to curated music.
NFT stakeholders such as Kingship and Overlord announced the arrival of token-enabled music playlists on Twitter. Those who own NFTs from specific artists will have access to "exclusive" curated playlists.
The service is currently available to token holders in the Fluf, Moonbirds, Kingship, and Overlord communities. During the three-month testing period, the curated playlists will be actively updated and accessible only to community members via a unique link.
Spotify confirmed the pilot by commenting on Overload and Kingship's tweets, but provided no additional information.
At Spotify, we run a variety of tests on a regular basis in order to improve our user experience. Some of these pave the way for our larger user experience, while others serve only as important learnings. At this time, we have no further information on future plans to share,
The NFT-gated playlists pilot announcement comes just days before Spotify's ‘Stream On’ event on March 8. It is also noted that Spotify recently announced its experiment with an AI-powered DJ who curates music for users.
In May 2022, the global streaming platform previously experimented with incorporating NFTs into its service. In which, it allowed a select group of artists, including Steve Aoki and The Wombats, to promote NFTs on their profiles.
For the time being, the "token-enabled playlists” service is only enabled to Android users in the US, UK, Germany, Australia, and New Zealand.
Probably soon, at its upcoming event, the company will discuss it further.
Why should marketers pay attention to Spotify’s new NFT-based initiative?
Businesses must constantly experiment with new ideas in order to stay competitive, up their game, and meet growing customer expectations.
NFT is no exception.
Brands experiment with NFTs in different ways. Some of them use NFTs as event tickets, special subscriptions, memberships, etc. Starbucks-like brands use NFT-based loyalty programmes to strengthen their communities and build brand loyalty.
However, due to the crypto market's downturn, investment in NFT has slowed in recent times.
But, with Spotify's new announcement, we believe the NFT craze is slowly picking up the pace. The love of music may probably push younger generations to go for Spotify’s "token-enabled playlists."
New NFT use case:
If Spotify’s new NFT initiative turns out to be successful, we believe it will open up new NFT use case for brands to expand business.
By applying the same strategy, brands may effectively sell their exclusive products through NFTs in the future. The key benefit it holds is that, besides expanding brand visibility, it allows brands to monetize their NFT easily while also driving the sales of their exclusive products.
Exclusivity can drive sales:
The exclusivity that products bought using NFTs bring will increase customer interest in particular brand products. It, in turn, can make the products compulsive for others. Consequently, it induces more people to move towards NFTs. As a result, it can boost both product and NFT sales.
Thereby, we believe more brands will begin to embrace and experiment with NFT-based marketing.
Hence, it is crucial for marketers to keep an eye on Spotify's new initiative to stay ahead of marketing trends. Win or loss. There's a lot to learn for marketers.
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