How Does Audius Make Money?

Audius, a blockchain-based music platform, operates on a unique 'user-centric' model that directly benefits musicians. In contrast, Onavo, a mobile analytics company based in Israel, collects user data under questionable privacy practices. This article compares both models, highlighting their revenue generation strategies.

User-Centric Revenue Generation with Audius

The music industry has long been characterized by intermediaries that sap the earnings of artists. Audius, however, offers a different approach by using blockchain technology to ensure that artists are compensated for every stream of their music directly from their listeners. Here’s a detailed look at how Audius achieves this:

Direct payments to artists: Audius utilizes a peer-to-peer network which allows artists to receive payments directly from the users who stream their music. This streamlines the payment process, eliminating traditional intermediaries like record labels or streaming platforms. Transparency and smart contracts: Smart contracts on the blockchain ensure that all payments are transparent and traceable. This level of transparency is a significant advantage over traditional systems, which can be opaque and inefficient. Token economy: Audius employs a token economy where users can earn and spend VeFit (Audiopus Token Native Utility Token) that supports the platform's operations and encourages user participation.

Privacy-Invading Practices of Onavo

On the other side of the spectrum is Onavo, a company known for its dubious privacy practices. Unlike Audius, Onavo has not focused on user-centric benefits but instead harvests vast amounts of user data in the name of analytics and app optimization:

Data collection: Onavo collects data from its users even when the apps are not in use, using it for both its own analytics as well as providing detailed user insights to its clients, which include intelligence agencies and unknown shell companies. This level of data collection is deeply concerning from a privacy standpoint. Founding: Background: Roi Tiger, Onavo’s founder, has a background in Israeli military intelligence. This background is reflected in the company’s proprietary data collection methods, which often blur the lines between commercial and governmental interests. Financial opacity: While Facebook paid an undisclosed sum for Onavo, the true extent of revenues generated from its core product is unclear. Facebook might not derive significant direct revenue from Onavo, but it likely benefits from the underlying technology.

Revenue Generation Models: Audius vs. Onavo

The revenue generation models of Audius and Onavo couldn’t be more different. While Audius provides direct financial benefits to artists through direct streaming payments, Onavo makes money by providing detailed user data to intelligence agencies and governments:

Audius

Direct payments: Artists receive payments directly from users who stream their music. Token economy: Users can earn and spend VeFit tokens, incentivizing more engagement. Blockchain transparency: Smart contracts ensure that payments are transparent and traceable.

Onavo

Data collection: Gathers user data, even when apps are not in use. Cyber snooping: Provides intelligence agencies detailed information about its users. Investors: Financial backing from intelligence agency affiliates like Magma Venture Partners.

Conclusion

Audius and Onavo represent two starkly different approaches to business models in the tech industry. While Audius prioritizes transparency, user privacy, and direct financial benefits to artists, Onavo focuses on data collection and analytics, often at the expense of user privacy. As users become more aware of these practices, the choice of which platform to trust becomes increasingly important.