Global media giant Warner Music Group will be creating digital assets using new public blockchain backed by CryptoKitties creator.
Warner Music’s to create assets on Flow
According to a Forbes report on Sept. 12, Warner Music has joined an $11.2 million investment in CryptoKitties creator Dapper Labs in order to collaborate on the deployment of the company’s new blockchain network called Flow as well as building tokens on top of it.
While Warner has reportedly invested less than $1 million in the form of a convertible security, other contributors included major industry investors such as Andreessen Horowitz, Digital Currency Group, Union Square Ventures and Venrock, the report notes.
Flow’s potential in the music industry
Jeff Bronikowski, senior vice president of business development at Warner Music, reportedly stated that Dapper Labs’ CryptoKitties technology could be used to create unique and tradable merchandise featuring its superstar talent in case if the transaction volume issues can be solved.
According to the report, Flow is claimed to be capable of processing transaction volumes many times more than Ethereum blockchain, on which the famous CryptoKitties game is based.
Bronikowski reportedly hinted that the new investment intends to unlock a new method for sharing Warner Music’s content as well as a new type of engagement with artists. He said:
“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.”
According to Forbes, the first round of fundraising will be spent exclusively on finishing the Flow blockchain and building apps on it, while the accredited investors will receive a cut of company stock.
The investors will also have a bonus option to convert the securities into tokens that can be spent on the network as soon as the firm gets regulatory approval from the United States Securities and Exchange Commission.
Additionally, Warner Music is reportedly looking into how cryptocurrency could be used to enable a new method for tipping artists on the network and testing two different blockchain platforms for directly connecting musicians with their fans without the need of intermediary distributors.
On Sept. 4, Korean pop music giant SM Entertainment revealed plans to create its own crypto and blockchain in partnership with tech organization CTIA Labs.