Korea’s biggest pop talent agency SM Entertainment planning to launch cryptocurrencies built on its own blockchain network.
The decision was announced on 4th September, at Incheon, South Korea at the Upbit Developer Conference. Tech organization CTIA Labs will be involved for the development of the blockchain network.
Fans will be able to invest in their favorite artists” works through cryptocurrencies and tokens. The investment can be in the form of purchasing concert tickets to merchandises.
A Global phenomenon
The multibillion revenue of K-Pop entertainment is a global phenomenon selling out US Stadiums within minutes.
Founded in 1995, SM Entertainment made its mark with the rising Korean pop industry which is finding a massive audience globally. According to Crunchbase, the company has an estimated annual revenue of $350 million. Financemagnates.com Report.
Korean Stock Exchange lists SM Entertainment with a market capitalization of a rough $600 million.
“Blockchain from the entertainment standpoint is a decentralized entertainment entity.” – CT-AI Labs CEO Sang-Sik Joo
Blockchain and the music industry
Blockchain and the music industry can revolutionize the current system from paying artists fairly, in a timely manner to tackling piracy and uncollected royalties to issuing of smart contracts.
Perhaps the most complicated issue, though, is international rights. When music crosses the border from one country to another, things can get more complicated as more distribution companies are involved that follow different laws, regulations and business practices. Blockchain technology can overcome this barrier by acting as supra-national record keeper, ensuring that things go smoothly and that all funds are accounted for. Singlegrain.com Report.
The decision was made in response to SM Entertainments falling stock prices and concern of its shareholders. It’s stock prices crumbled down to 43 percent since last November.
The launch aims to address the inefficacies of the entertainment industry and payment systems.