Direct Artist Payment Platform for Music Streaming

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Direct Artist Payment Platform for Music Streaming

Inspired by a conversation on:

The Vergecast

The Vergecast

Jack Dorsey’s Square, Inc. buys Tidal / Microsoft Mesh and the future of Microsoft Teams / Apple not switching to USB-C iPhones

Host: Nilay Patel, Dieter Bohn, Micah Singleton, Tom Warren

Timestamp: 04:08 - 07:19

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Feather Flow

Direct Quote

"The next evolution of that is just paying artists directly for music like we once did, cutting out the middleman."

Market Gap

Independent artists struggle to receive fair compensation from streaming services.

Independent musicians often find themselves receiving a fraction of the revenue generated from their music due to the current streaming payment models, which are based on market share. This means that even if listeners prefer indie artists, their contributions may not translate into significant earnings. Artists typically wait months for payments, and many are forced to rely on touring for their income. This system is unsustainable, especially for new artists who are trying to break into the industry. The growing demand for direct compensation models has led to initiatives like SoundCloud's user-centric payment structure, which pays artists based on who their listeners are. However, this model has not yet been fully adopted across other platforms, highlighting the ongoing struggle for fair compensation in the music industry.

Summary

The idea involves creating a platform that allows users to pay artists directly for their music through a service like Cash App. This would eliminate the middleman and ensure that artists receive their earnings immediately after a transaction. By leveraging the acquisition of Tidal, Square can create a financial ecosystem around independent musicians, allowing for direct payments for music and merchandise. This approach not only addresses the income disparity artists face but also caters to the growing consumer demand for supporting indie artists directly. The target audience includes independent musicians and their fans who are eager to support artists financially through direct transactions.

Categorization

Business Model
Marketplace
Target Founder
Generalist
Difficulty
Medium
Time to Revenue
3-6 months
Initial Investment
$1,000-$10,000

Potential MRR (18-24 months)

Conservative
$5,000 - $10,000 MRR
Moderate (Most Likely)
$15,000 - $30,000 MRR
Optimistic
$40,000 - $70,000 MRR

* Estimates assume solo founder/bootstrap scenario with competent execution

Scores

Clarity
8/10
Novelty
7/10
Feasibility
6/10
Market Potential
8/10
Evidence
7/10
Overall
7.2/10
Found on October 1, 2025 • Analyzed on October 1, 2023 7:21 AM

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