Beyond Bitcoin: Blockchain and Crypto for the Music Industry A Boogie Wit Da Hoodie Juice WRLD Jacob Sartorius Clairo Charlotte Lawrence and more ISSUE NO. 55 JULY 2018 TABLE OF CONTENTS 4 EYE OF THE STORM Beyond Bitcoin: Blockchain and Crypto for the Music Industry 6 STORM TRACKER Ariana Grande, Best Coast, Hannibal Buress, and Marshmello 7 STORM FORECAST Google’s New Voice, Mamma Mia! Here We Go Again, Collectibles and Comics Galore, and PUMA x Jay-Z 8 STORM WARNING Our signature countdown of 20 buzzworthy bands and artists on our radar. 19 SOURCES & FOOTNOTES On the Cover: Miguel ©Timothy Saccenti ABOUT A LETTER THE STORM FROM THE REPORT EDITOR STORM = STRATEGIC TRACKING OF RELEVANT MEDIA From CES to SXSW to the Cannes Lions last month, blockchain has continued to be a hot The STORM Report is a compilation of up-and-coming bands and artists topic of conversation in 2018. This month’s who are worth watching. Only those showing the most promising “Eye of the STORM” article explores the vari- potential for future commercial success make it onto our monthly list. ous ways that blockchain is being explored and utilized by the music industry, an industry How do we know? that is ripe for disruption in support of art- ists. Over the past few years, memBrain has Through correspondence with industry insiders and our own ravenous explored the world of blockchain across a wide media consumption, we spend our month gathering names of artists range of industries, particularly those where who are “bubbling under”. We then extensively vet this information, transparency and authenticity are of utmost analyzing an artist’s print & digital media coverage, social media importance. As the music industry continues growth, sales chart statistics, and various other checks and balances to to be disrupted by both digital distribution ensure that our list represents the cream of the crop. and artists’ desire to have fair remuneration for their work, the powers that be in the mu- Why do we do it? sic industry must embrace and support these new tools and standards. Simply put, block- Music is the best way to sell products because it creates such a powerful chain may well be the foundation of the mu- emotional connection with an audience. The STORM Report provides sic industry ecosystem of the future. Artists our clients with a tool to harness the music that will be the most are also finding inspiration for new projects relevant to audiences in the near future, thereby becoming very useful with the hope of a more fair and reasonable for the enhancement of products, promotions, and platforms. compensation model, and we believe that this holds the potential to usher in a new golden age of music—not just for its listeners—but for those who make it, as well. Jennifer Sullivan President, memBrain Editor-in-Chief, The STORM Report STORM ALUMNI STORM STAFF Jennifer Sullivan Editor-in-Chief Ian Hecht Assistant Editor Jennifer Sullivan/Grace Slansky/Ian Hecht/ Claire Rawson-Dannenbaum Writer/Research Ian Hecht/Grace Slansky ALISON KIM TOM Writer WONDERLAND PETRAS MISCH STORM 42 STORM 52 STORM 22 Robert Roxby Designer THE STORM REPORT Issue No. 55 July 2018 3 EYE OF THE STORM Akon announcing plans for his cryptocurrency Akoin at Cannes Lions 2018 Choon, Inmusik, and Musicoin are Beyond Bitcoin: all similarly offering new streaming platforms for artists that incorporate blockchain and cryptocurrency. These Blockchain and Crypto platforms “tokenize” the music streaming and discovery experience by paying for the Music Industry independent artists in their proprietary cryptocurrencies. Think of them like By Ian Hecht and Grace Slansky SoundCloud powered by blockchain technology—independent artists upload Blockchain, Cryptocurrency, ICO—Like it or not, these words have become more than their music to the platform and are paid buzz words and hot topics of conversation at dinner parties and business conferences; directly daily based on the number of they are rapidly making their way into more and more aspects of our lives. And while not streams their music garnered. Blockchain everyone is ready to jump on the bandwagon and commit to investing in cryptocurrency technology has the benefits of being or becoming blockchain savvy, having a basic understanding of the key players has transparent, fast, and easily divisible, become a necessity—particularly for the music industry. To help you on your journey allowing artists to easily split earnings to blockchain enlightenment, we have compiled some of the most innovative companies and receive them quickly. Streaming is exploring the intersection of this revolutionary technology and music. free for listeners, and they can even earn currency themselves by creating popular REDESIGNING STREAMING playlists, listening to promoted songs, and supporting the community through The issue with the current streaming model is that there are too many intermediaries useful comments and feedback. between your wallet and the artist’s pocket. As the industry stands now, streaming payments are opaque and artists often aren’t paid for their streams for over a year—if Although they are founded on the same they are paid at all. The following companies are using the blockchain to remove the basic model, each platform differs in intermediaries, creating their own platforms with transparent and simple artist payment terms of their features, processes, and in mind. current roadmap. Founded by Trance DJ 4 THE STORM REPORT Issue No. 55 July 2018 Gareth Emery, Choon is currently in public beta, meaning you can ownership of these songs. Vezt will track and collect royalties go stream songs on their website right now. Choon pays artists in 137 countries and pay these to the artists and the investors, daily in their cryptocurrency, NOTES, and positions opposite to creating a system where music is both art and a commodity. the major label model, seemingly wanting nothing to do with their library. Inmusik, on the other hand, plans to work with the major HOW YOUR FAVORITE ARTISTS ARE USING BLOCKCHAIN labels to create a blockchain copyright management solution that will fairly serve the industry. Musicoin is also in an early public Although the technology is still young and largely misunderstood beta. Unlike the others, it offers a “tipping” mechanism in which by the general public, popular artists are already jumping on the artists can earn extra $MUSIC (their cryptocurrency) and rise up bandwagon. the leaderboard to gain visibility. Last month at the Cannes Lions Festival of Creativity, Pop/R&B INNOVATIVE PAYMENTS TO ARTISTS star Akon announced that he will be launching his own personal cryptocurrency, Akoin. The singer has been cryptic about the There is a reason the “Starving Artist” archetype is such a popular details for product thus far, but he has been very clear about his one—it is increasingly difficult to make a living solely off of goals. Akon hopes that future success of Akoin will allow him to creative endeavors. The following companies are working to make launch “Akon Crypto City,” an entirely crypto-based 2000-Acre music a more sustainable career, offering innovative solutions to city in Senegal. He has previously stated that “blockchain and today’s artist roadblocks. crypto could be the savior for Africa in many way, because [they bring] the power back to the people,” and it seems now he has Beta platform Ujo uses blockchain technology to create a the tools to begin acting on this. Keep an eye on the “Smack That” transparent and decentralized database of rights and rights singer for what is sure to be an interesting journey. owners, automating royalty payments using smart contracts and cryptocurrency. It also allows users to buy songs and albums Rather than using cryptocurrency to fund personal projects, The using Ethereum, with proceeds going straight to the artist Black-Eyed Peas are taking advantage of the newly available instantaneously. Transparency is more important than ever technology to incentivize their fans. In partnership with Sweet, now that we are used to having information at our fingertips. they have relaunched their website, turning it into a marketplace Ujo essentially tackles two of the biggest payout problems for where fans can earn the digital token Sugar for performing musicians, while remaining a transparent source of information, meaningful social and user actions on behalf of the band. The making it a big player to watch. This innovative endeavor is a BEPs are pioneers on the platform, and we can’t wait to see who part of ConsenSys, a blockchain software company created by follows suit. Ethereum-Cofounder Joe Lubin. ConsenSys develops and backs a variety of blockchain projects in fields as diverse as banking, We’ve known for a while that the music industry’s status quo energy, insurance, government, and more. is not working for most artists. The companies in this article are harnessing blockchain technology to make a difference, With the proven success of sites like Kickstarter and GoFundMe, however it’s remarkable how similar many of their offerings there it seems fitting that the next iteration of crowdfunding are. Time will tell how many will go on to become flourishing incorporates cryptocurrency. Enter Fanmob, the cryptocurrency- platforms, and how the major labels will react to these upstarts. based crowdfunding platform. Artists can create their own tokens on the Fanmob app and fans can rally behind them, offering their support in the form of crypto to help fund their projects. But it does not stop there. All-in-one style SingularDTV was created with the goal of a completely decentralized entertainment industry in which content creators retain control over their work and access to their profits. Its content portal lets creators crowdfund, upload, sell their content, create their own tokens, and share their work, with more features planned in the future.