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S!NG, a Seattle startup developing a blockchain-based marketplace for musicians to sell non-fungible tokens and physical merchandise, raised $2.66 million.
Launched in 2019, S!ng helps artists engage with fans through a “digital-physical hybrid model.” Artists list “packages” that include items such as vinyl records, CDs, cassettes, handwritten notes, and more on the platform. These physical products contain embedded QR codes and NFC chips that lead to “digital counterparts” in the form of NFTs, or “S!ng Collectables.”
NFTs, sometimes referred to as digital collectibles, are digital certificates of ownership that use blockchain technology and cryptocurrency. By owning a S!ng Collectable, consumers gain exclusive access to digital content like videos, MP3 files and virtual concerts.
“Fans want something that’s more than just Spotify,” said S!NG co-founder and CEO Geoff Osler.
Artists offer varying quantities of digital-physical packages, typically up to 3,000 units, priced at around $100 each. The company facilitates purchases through Stripe, allowing consumers to buy NFTs using their credit cards.
Osler said consumers have the opportunity to gain “true ownership” of an artist’s merchandise and music, with the potential for both the items and digital collectable to appreciate in value over time. He said the company plans to expand the platform by allowing fans to also sell their NFTs.
S!ng attracts artists because it helps them identify “superfans,” Osler said. This data would otherwise by impossible to obtain on music streaming platforms, he said. There are 16 artist profiles on the marketplace.
The startup is looking to go after the expanding digital music market. There are more than 2.4 million global music artists, and 145,000 of them have more than 10,000 streams on Spotify, according to market research.
NFTs gained significant attention during the cryptocurrency boom of 2021, when athletes, artists, celebrities and others released their own digital collectibles to interact with fans. But popularity has significantly dwindled in recent years amid a broader downturn in the crypto market due to macroeconomic conditions and regulatory crackdown.
“We rode the craziness of the NFT boom about a year and a half ago,” Osler said. “Up to the ceiling and all the way back down again.”
As blockchain tech continues to mature, consumer loyalty and engagement is often cited as one of the most applicable use cases. For instance, Starbucks Odyssey uses NFTs to give customers collectable digital stamps that grant access to exclusive perks and products. They can be earned through interactive games or other challenges. Seattle startup Forum3 sells a white-labeled version of Starbucks Odyssey to other consumer-facing brands.
Creators have a number of options when it comes to monetizing their fan base. There are platforms such as Patreon and OnlyFans, which charge a subscription to access exclusive content. Artists can also sell their content on sites such as Apple and Amazon to generate revenue.
S!ng plans to eventually target other categories including gaming and sports, Osler said. “The real explosive growth happens once we prove the test case, connect with consumers, and build some scale behind this thing,” he said.
The company, which is unprofitable, declined to disclose how much in total it raised or the investors in the round. It previously landed a $265,000 debt round in 2020.
The 10-person startup is led by Osler, who previously worked at Apple and Adobe, and co-founded ClearSign Combustion in 2008. His co-founder Jim Harmon was a longtime exec at Sabey Corporation and also worked at ClearSign, which went public in 2012.
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