Spotify is testing new technology in its music streaming service. The company is currently experimenting with a feature that requires ownership of an NFT (non-fungible token) to gain access to specific playlists.
This trial involves several organizations, including Kingship, Fluf, Moonbirds, and Overlord. Currently, the feature seems to be available only to Android users in selected countries. This could be because Apple restricted NFTs on iOS in October 2022.
According to a report, a spokesperson from Spotify has stated that the company “regularly” conducts experiments, with some resulting in product enhancements while others providing “valuable insights.” The representative did not disclose any further plans for the NFT trial. Although the upcoming Stream On event is scheduled for March 8th, there is no assurance that the feature will be unveiled at that event.
Spotify is familiar with digital tokens and has previously experimented with NFT galleries on artist pages. The company has also hired people with relevant technical expertise.
By using this new feature, Spotify could collaborate with partners by making the tastemaker’s musical choices accessible only after buying an NFT, thereby promoting listening and potentially increasing the sales of the partners’ NFTs.
The timing is unfavorable as blockchain firms, such as FTX and Coinbase, are dealing with fraud accusations, and the cryptocurrency market is declining. Interest in NFTs has also declined significantly over the past year, partly due to low sales of these assets.
Additionally, Spotify is reducing costs and has announced that it will let go of six percent of its employees. The company now has fewer resources to invest in experiments and would be entering an unfavorable market scenario.