B* Better Have My Money: Rihanna’s Super Bowl Show Helped This Web3 Startup Secure Millions
Following Rihanna’s iconic Super Bowl LVII halftime performance, anotherblock‘s non-fungible token (NFT) collection of the track sold out in minutes. Now, the Stockholm-based web3 music startup has secured €4 million ($4.3 million) in funding to continue its work of redefining music ownership.
Achieving triple platinum status upon its release, BBHMM gained new virality after Rihanna performed the track at the Super Bowl LVII halftime show.
Jamil “Deputy” Pierre, a co-producer on Rihanna’s BBHMM, linked up with anotherblock to sell 0.99% of his streaming royalty rights to the song as 300 NFTs at $210 a piece.
According to anotherblock, the collections sold out in minutes, earning NFT holder received a portion of 0.0033 % of the streaming royalties for the song.
NFT holders also received additional perks, including unique artwork from an NFT artist, a custom music track, and access to an exclusive gated Discord community, real-world events, and priority access to upcoming NFT releases.
And Deputy? He raked in an impressive $63,000.
What is anotherblock?
Anotherblock is a blockchain-based startup that connects music rights to NFTs, creating a smooth and easy way to both buy and sell music rights.
Leading the charge at anotherblock is co-founder and CEO Michel D. Traore, alongside entrepreneurs Sebastian Ljungberg and Filip Strömsten.
Growing up between Sweden and Burkina Faso, where his father created the country’s first modern label, music has always played a huge Traore’s life. In 2021, after spending several years working in the European startup scene, Traore decided to combine his fintech expertise with his love of music with anotherblock.
“Today, everyone from DIY home producers up to big stars can get a hold of the right sonic tools to make good music, and it sounds great streaming through your AirPods,” Traore, anotherblock CEO and co-founder, wrote for BeInCrypto.
“By taking the strengths of digital music and online decentralization and applying them to industry needs, Web3 platforms have the potential to disrupt what needs to be disrupted without throwing out music’s successes.”
How does it work?
- Music creators sell parts of their future royalty streams on anotherblock, giving the public access to ownership of major tracks.
- People can then buy their shares as an NFT, earning earn royalties when the songs are streamed and gaining access to exclusive utilities.
- NFT holders can claim their royalties every six months and follow their songs’ performances on their profiles.
A seismic shift for the industry?
According to tech.eu, anotherblock has now secured a €4 million funding round led by Stride.VC, with participation from renowned producer Axwell and Swedish House Mafia.
Gabbi Cahane, partner at Stride.VC, said in a statement: “This proposition could be a seismic shift for an industry that has traditionally been extremely protective over the ownership of IP.”
This funding follows a previous $1.2 million pre-seed round from VC J12 and angel investors.
Aside from Rihanna, anotherblock’s roster of artists includes The Weeknd, Martin Garrix, Alan Walker, Offset, and R3HAB. With an ever-increasing supply of music available on platforms like Soundcloud, Spotify, and Apple Music, web3 platforms like anotherblock have the power to democratize music ownership and disrupt traditional models.
Addressing issues in the music industry
anotherblock believes that web3 technology, with its focus on ownership, decentralization, and audience engagement, holds the potential to revolutionize the music industry.
Many creators do not fully own the rights to their creations. As a result, streaming revenues often fail to benefit the creators, perpetuating unfair power dynamics within the recording business. Web3 platforms have the potential to rectify this imbalance by allowing more people to participate in music rights, shifting power away from corporate entities and towards music enthusiasts and artists.
Another pressing issue is the involvement of costly intermediaries, with streaming services typically taking a substantial 30% cut. Writing for BeInCrypto, Traore argues that web3 platforms provide an opportunity to challenge and rethink existing models, creating alternative approaches that better serve artists.
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For example, by leveraging blockchain’s capabilities to grant ownership on the internet, artists can directly fund their music through web3 platforms, breaking free from exploitative business models.
“By tapping into Web3 models, music tech companies can move the needle on long-held problems within the industry while sticking to the strengths already in place, a perfect match.”