Warner Music has invested in a new blockchain created by the developers of Cryptokitties. The platform is called Flow and should be able to handle much more transactions than the Ethereum blockchain. Warner Music could be offering digital merchandise, like unique virtual items that are part of a collecting game.
“The main goal is to create new avenues where the fans of our artists can explore their fandom and engage with the artists in new and different ways that they haven't done before.”
Jeff Bronikowski, Senior vice president of business development at Warner Music (Forbes, September 12th 2019)
Additionally the music company is thinking of a new way to invest in artists. Cryptocurrencies could be used to enable a new method for tipping singers, bands and DJs. The company could be using Flow, but according to Forbes they are also looking into two different blockchain platforms.
The investment by Warner Music in Dapper Labs was rather small. According to Forbes it was less than 1 million dollars. Thankfully blockchain developer Dapper Labs managed to get the interest of a group of investors. The group includes Andreessen Horowitz, Digital Currency Group, Venrock and Union Square Ventures. Dapper Labs received an investment of 11.2 million dollars.
This initial investment will be used to finish the Flow blockchain. In addition a couple of apps will be developed for it. The investors also have the option to convert securities into tokens that can be spent on the network. First Dapper Labs will need to get its regulatory approval from the United States Securities and Exchange Commission (SEC).
The relationship between music and crypto doesn't go much further than paying for services or ordering tickets online. But things could very soon change. South Korean K-pop label SM Entertainment is eyeing a blockchain project to attract fans in a new way. Recently Spotify hit the news when Facebook announced its Libra stablecoin. Their CEO said the blockchain technology would allow artists to earn money in a new way.
There aren’t many connections between the music industry and blockchain technology just yet. However, it does make a lot of sense to implement blockchain technology into the music making business. Writers, singers, band members, producers, record labels and everybody in between could be paid for every time a song is being streamed on a blockchain music platform.
