What Blockchain & Cryptocurrency Can Do For K-pop
Blockchain, Cryptocurrency, Bitcoin. These are the buzz words in the last few years. But what could be the benefits that such technologies can do for the K-pop industry?
SM Entertainment is leading as one of the largest entertainment companies in South Korea. The company has lately been showing interest in creating its own blockchain and is also very innovative in the online entertainment space. With the global popularity of K-pop ever-growing, it is not hard to understand that Korean agencies and companies are striving to be leading in the global music industry using the latest technologies.
Presented by SM Entertainment, “The world’s first Online Customized Paid Concert” includes AR technology and real-time 3D graphics. The ‘’Beyond live’’ series is a true spectacle on its own; that can actually be imagined of combining the online experiences with the power of crypto and blockchain, which will bring intense benefits particularly on technological advancement not only to the company, but also to the artists and audiences.
There are numerous ways how an entertainment company may benefit from using its own coin. With the explosive volatility of cryptocurrency prices as witnessed within the past one year, getting into the action purely from an investor’s perspective is lucrative (with high risks) of course, but the possibilities to reshape the entertainment industry may actually help to create values to the stakeholders.
Let’s examine at some of the possible ways from the context of a major music company like SM Entertainment, which can possibly implement cryptocurrency in their business.
Getting Paid in Cryptocurrency
We all know that cryptocurrencies are superior compared to the banking system in terms of speed, transparency and accessibility. If you look at the extravagance art that K-pop groups are known for, it seems logical that the payment networks which they use should be just as versatile.
Imagine the possibilities on how the salaries and royalties of artists can be paid with cryptocurrency; either in stablecoins, in Bitcoin, or even a coin created by the music label. The main benefits of getting paid in cryptocurrency may offer more options for the artists to use money without the limitation or fee that traditional finance incurs. This of course counts for anyone who wants to get paid in cryptocurrencies and not only the artists.
If we dive deeper, think about all the payments that have to incur whenever an artist goes on tour internationally. All the international wire transfer fees are surely better off if they are waived.
Royalties are important to all artists in the creative industry. The great thing about programmable money is that you can take a concept like royalties and program it into a cryptocurrency. This could be implemented with the use of Non-Fungible Tokens.
If a radio station wants to play a song from a certain group, they can purchase the song as an NFT. Upon purchase, the right amount of money will be sent to each party who owns these ‘’digital royalties’’. Of course, using a song in a movie is more expensive than playing it on the radio, and yes this kind of distinction can also be programmed.
The point is that royalties and salaries, with the help of crypto, can be distributed without the use of any intermediary, in a secure, easy, and instant manner.
The future of event merchandise
With online concert experiences like ‘’Beyond live’’, the use cases and possibilities for cryptocurrencies and especially NFTs show that they allow a more efficient method for merchandising.
From uniquely designed NFT art collections used as tickets to either an online or physical concert, to limited-edition collectibles which can be included upon purchasing an album.
Imagine that when you purchase the next TVXQ album, you will receive a piece of art containing the songs of the album as an NFT. This musical digital art piece can be transferred all around the world easily and can be sold too. If there are only a limited number of NFTs being issued at point of release with some being rare, the prices may probably increase overtime. Even though the fiat prices for cryptocurrencies are volatile, the kind of risk does justify when you are trying to create solutions and systems that can innovate and elevate your company to the next level.
To go one step further, imagine that every time an NFT is sold, a small percentage will be immediately transferred to the artist and all other royalty stakeholders. Or perhaps it can also even be applied for artists who always do charity with a small percentage being sent directly to the beneficiary. This method of fund channeling is non-existent today, yet it can be adopted using smart contracts on various blockchains.
The incentives to integrate these ideas are off the charts. And especially when you are the first. One of the exciting aspects of the cryptocurrency industry is being first, taking leaps of faith, and constantly innovating. K-pop music label SM-Entertainment may be remembered in the future as one of those early innovators, that is if it pushes through with whatever it is planning on with the blockchain initiative.
How does this story make you feel?