Music fans will soon be able to invest in artists’s works with cryptocurrency
SM Entertainment, one of South Korea’s largest entertainment companies, is planning to build a native blockchain network and cryptocurrency.
Joo Sang-sik, director of SM Entertainment’s CT-AI Labs, unveiled the firm’s plans but did not reveal specifics of the initiative, only noting that SM Entertainment is “currently discussing with partners who will build the blockchain business together.” Sang-sik also adds that SM Entertainment intends to “utilize both the public and private concept of the blockchain.”
SM Entertainment reportedly expects the blockchain platform to bridge the physical and virtual world. Joo commented on the development by defining the function that he sees blockchain having in the entertainment industry, saying:
“Blockchain from the entertainment standpoint is a decentralized entertainment entity.”
It is also revealed that with the blockchain network and the digital currency, the company is aiming to allow fans to invest in artists’ works. This will create more engagement between the fans and the artists in the entertainment industry.
A Major Player In Music Industry
Founded in 1995, SM Entertainment made its mark with the rising Korean pop industry, which is finding a massive audience globally. SM Entertainment is the largest South Korean entertainment company. Company data website Crunchbase estimates the firm’s annual revenue to be $350 million.
The music industry has been seen as a major opportunity for blockchain technology. Interestingly, it is believed to be a tool capable of disintermediating it, allowing direct economic interaction between fans and artists who would also get a larger cut of the value they create.
According to data from Factset, SM Entertainment has a market cap of $597 million.