Decentralized Music Streaming Service Audius Shifts Balance of Power, Says Bank of America

Audius moves “power, profits, control and governance from record labels and centralized [platforms] to artists and fans,” the report says.

AccessTimeIconJul 25, 2022 at 2:12 p.m. UTC
Updated May 11, 2023 at 6:50 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Audius’ decentralized music streaming platform provides artists with greater profits and increased control, Bank of America (BAC) said in a research report Thursday.

Audius launched its mainnet in October 2020 with the aim of shifting the “balance of power and profits from intermediaries, such as record labels and centralized DSPs [digital service providers], to artists and platform users,” the report says.

  • Key Events You Shouldn't Miss at Consensus 2024
    Key Events You Shouldn't Miss at Consensus 2024
  • What to Expect From Consensus 2024
    What to Expect From Consensus 2024
  • Will Solana and Altcoins Dominate the Market Next?
    Will Solana and Altcoins Dominate the Market Next?
  • What's Next for FIT21?
    What's Next for FIT21?
  • The platform plans to distribute 90% of revenues to artists and 10% to node operators by removing intermediaries, resulting in a “decentralized DSP that shifts power, profits, control and governance from record labels and centralized DSPs to artists and fans,” the note says.

    The streaming service said last week that it was offering a new feature for creators to monetize their content by allowing listeners to send tips to artists via its governance token AUDIO.

    Bank of America said the music industry is ripe for disruption. Still, Audius’ adoption trends and limited music offering relative to larger DSP’s are likely to limit “short-term disruption risk,” however, disruption over the longer term is still possible.

    Competition is an issue, as leading DSPs have built “economic moats” around their businesses by offering large music offerings through record labels and by leveraging personal data to improve the user experience, the note says. Smaller DSPs, such as Audius, are faced with a “Catch-22 scenario,” as user adoption is needed to push artists onto their platform, but it also needs artists to join to drive user adoption, it added.

    The bank notes that while Audius’ platform has attracted mainstream artists, including deadmau5, Diplo, Skrillex and Weezer, its usage growth has slowed since December 2021.

    There are also potential legal risks related to Audius’ inability to remove music that infringes on copyright that should not be ignored, the note added.

    The platform said Saturday that it was aware of reports of an unauthorized transfer of AUDIO tokens from the community treasury after it was the victim of a hack.


    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Author placeholder image

    Will Canny is CoinDesk's finance reporter.

    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.

    Read more about