As per the International Federation of the Phonographic Industry, the global recorded music market earned revenues worth $21.6 billion in 2020. In a separate report, DappRadar claims that the sales of all NFTS surpassed $17 billion in 2021. Swedish startup anotherblock, which provides a blockchain-based music rights marketplace combines these two booming sectors to let creators achieve financial prosperity.
Now, the anotherblock has secured $1.2 million in pre-seed funding. The round was led by Stockholm-based early-stage VC J12 alongside participation from Sebastian Knutsson, founder of King, maker of Candy Crush; Mattias Miksche, founder of Stardoll, and Mathias Ackermand, co-founder of Transmode. The company intends to use the funds to expand operations and its development efforts.
Supporting anotherblock’s mission, numerous creators are backing the company. As an investor, there is DJ, music producer and label owner (and member of Swedish House Mafia), Steve Angello. Advisors to the project include legendary Canadian-American music producer Doc McKinney (who received a Grammy for the Weeknd’s Starboy album).
Blockchain marketplace in 2022
With this financing, anotherblock intends to fulfil its vision of supporting music creators, and increase the value of their work by launching a marketplace for music rights. This marketplace, which will use blockchain to democratise music ownership and will empower creators and add value to their art. The company will launch its blockchain-based marketplace for music rights in the first half of 2022.
Focus on NFTs
As per the company, NFTs will be its initial focus and it will introduce tokens connected to royalty rights. Each of these NFTs will generate royalties related to ownership. As it creates unique NFTs, the buyer is the sole individual who can enjoy the art either in-person or within the metaverse. Creators or artists who put their rights on the blockchain will receive a transaction payment/trade-royalty each time the NFT is traded.
Once the NFT marketplace is up and running, anotherblock will also focus on rights management for artists and labels on the blockchain.
What does it do?
anotherblock was founded by Michel D. Traore, Sebastian Ljungberg, and Filip Strömsten. Traore, the CEO was the former head of international expansion for Lendo, the Oslo-based fintech. Ljungberg, the CTO and Strömsten, COO of the company joined Traore and founded anotherblock to bring a solution for artists to take charge of ownership.
The startup solves three issues including the inability for ordinary investors to access prominent asset-class, difficulty liquidising and opening-up music rights to a broader market, and a corresponding undervaluation of the music itself.
Michel D. Traore, CEO of anotherblock, said: “Sweden has a long history of being at the forefront of both creativity and innovation within the music industry, and we know that to maintain new and exciting music, creators must be supported and receive fair payment for their work. Unless profound changes are implemented in the way that artists can monetise their creativity, the music industry is in a race to the bottom. anotherblock is the solution: harnessing the latest technology and industry expertise, our platform will protect the creators, and support them as they continue enriching society and our culture.”