Spotify is currently testing a new service called “token-enabled playlists” with one of its partners, Overlord. This service allows non-fungible token (NFT) holders to connect their wallets and access curated music. The service is currently in the pilot phase and is only available to Android users from the United States, United Kingdom, Germany, Australia, and New Zealand. Universal Music Group’s NFT band Kingship has created a token-gated playlist for NFT holders that will feature Queen, Missy Eliott, Snoop Dogg, and Led Zeppelin. The testing period consists of three months, during which the curated playlists will be actively updated and can only be accessed by community members with the help of a unique link.
Spotify ended 2022 with better-than-expected user growth despite widening quarterly losses. The earnings report showed that it increased 18% YoY in the fourth quarter raking in 489 million monthly active users. This is not Spotify’s first tryst with the NFT sector. Earlier, the platform ran a test to help a small group of artists, such as Steve Aoki and The Wombats, promote their existing third-party NFT offerings via their artist profiles.
The new token-enabled playlists service is a great way for NFT holders to access exclusive music. It is also a great way for Spotify to increase its user base and engagement. The test period of three months will help Spotify to assess the success of the service and decide whether or not to make it a permanent feature. This could be a great opportunity for Spotify to further expand its reach and increase its user base, as well as provide an additional source of revenue.
