Spotify CEO Daniel Ek believes that Facebook’s Libra cryptocurrency could change the way artists are being paid. Ek suggests that the currency may allow users to pay artists directly. That’s what he said in a recent episode of Spotify’s own podcast.
It’s unclear whether this means that users can tip artists on top of the existing subscription plan, or that users pay artists based on the songs they’ve been listening to. Currently Spotify has an ad-based system for free users, while it also offers a subscription without ads. The company is expecting 6.3 to 6.8 billion euro in revenue for 2019, but an operating loss between 200 and 360 million euro for the year.
Together with dozens of other companies Spotify is one of the founding members of the Libra Foundation. This foundations guards the principles of Libra, the upcoming cryptocurrency that will be launched by Facebook. Besides Spotify and Facebook, companies like Vodafone, Uber, Ebay, Paypal, Visa and Mastercard, are also involved in the foundation.
Facebook has already confirmed that Libra will launch in 2020. The coin can be used on Facebook, Whatsapp and Instagram. It’s very likely that the companies in the foundation will also accept Libra as a payment method, but it will be even more interesting to see how a cryptocurrency will change their current business.
Also published on Medium.