Warner Music Group intends to create digital assets utilizing a new blockchain supported by CryptoKitties developer.
In particular, the media company is joining hands in the $11.20 million investment in CryptoKitties developer Dapper Labs for the purpose of playing a role in the establishment of the firm’s new blockchain ecosystem dubbed Flow and also to create a native token over it.
Warner has invested only below $1 million through a convertible security, with the rest coming from investors such as Union Square Ventures, Andreessen Horowitz, Digital Currency Group and Venrock.
Jeff Bronikowski, senior vice president of business development at Warner Music, has opined that the tech behind CryptoKitties could be utilized to develop exclusive and tradable goods.
Flow is asserted to be accomplished of handing trade volumes many times higher than the popular Ethereum blockchain over which CryptoKitties game runs.
Bronikowski signaled that the new investment aims to unlock a fresh strategy for distributing Warner Music’s programs and also a unique kind of involvement 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.”
The initial round of funding will be used up solely on developing the Flow blockchain and creating apps on it, while the certified investors will obtain a portion of company stock.
The investors will also be presented with an additional choice of converting the securities into tokens which can be expended on the network immediately after the company receives regulatory clearance from the US SEC (Securities and Exchange Commission).
Warner Music, in addition, is looking at the option of permitting artists to be tipped using cryptocurrency and piloting two kinds of blockchain platforms for linking musicians straightaway with their respective fans without a need for third-party distributors.
It can be remembered that a week before, Korean pop music firm SM Entertainment divulged its strategy to develop its native cryptocurrency and blockchain in collaboration with technology firm CTIA Labs.
