Warner Music Group has joined an $11 million investment round in Vancouver-based Dapper Labs, the blockchain firm behind games such as NBA Top Shot and CryptoKitties.
The funding will contribute to the development of an Ethereum rival called Flow, a new public blockchain that Dapper Labs says has been developed in response to ‘the problem of blockchain scalability’ for consumer applications like games and digital collectibles.
Some of the types of applications Flow will support include artists or bands using financial tokens for fans to buy digital merchandise, games that reward players with ‘assets and identities’, or platforms for sports fans to trade ‘verified, authentic and limited-edition digital memorabilia’.
Flow will launch in 2020, which Dapper Labs says will give it enough time to support many of its ‘large-scale, consumer-facing entertainment, music and gaming projects’ that are currently in the works.
Speaking to Forbes, Jeff Bronikowski, Warner Music Group’s VP, Global Digital Business Development and Head of Innovation and Emerging Technology said that “the main goal [of the blockchain investment] is to create new avenues where the fans of our artists can explore their fandom and engage with the artists in new and different ways that they haven’t done before”.
Bronikowski joined WMG in 2017 and was tasked with ‘forging business opportunities and strategic alliances that advance WMG’s Business Development strategy, with an emphasis on new technology and formats’.
Forbes reports that this is WMG’s first blockchain investment
WMG has joined an impressive list of investors, including Andreessen Horowitz’s crypto fund, Accomplice, AppWorks, Autonomous Partners, Fenbushi Digital, as well as existing investors Union Square Ventures, Venrock, Digital Currency Group, Animoca Brands, SV Angel, Version One, and CoinFund, among others.
The $11m raised will be used ‘exclusively’ on developing Flow, reports Forbes, which says that ‘accredited investors will receive a traditional cut’ of Dapper Labs’ stock.
Investors will have the ‘additional option to convert the securities into tokens that can be spent on the network after the company receives approval from the Securities & Exchange Commission,’ adds the article.
In addition to the new investment, Dapper Labs has revealed that it has struck partnerships with ‘leading entertainment publishers’ to ensure that Flow is ready for ‘enterprise-scale use-cases”.
Ubisoft, the developer behind games like Far Cry, Just Dance and Assassin’s Creed is also advising on Flow.
Animoca Brands, a game developer and publisher that is currently developing a number of crypto games including F1 Delta Time and The Sandbox, will be one of the first game companies to build on Flow.
Dapper Labs was formed in February 2018 and has received over $40m in financing from notable investors including the founders of Dreamworks, Reddit, Coinbase, Zynga, and AngelList, among others.
“Bitcoin and Ethereum show how crypto can make the world of finance more open and transparent; Flow will do the same for consumers of entertainment and culture.”
Roham Gharegozlou, Dapper Labs
Roham Gharegozlou, CEO of Dapper Labs said: “After almost two years of research, we’re excited to share Flow with the world.
“Flow is a blockchain built from the ground up to support high performance ecosystems of apps and games without compromising decentralization.
“Bitcoin and Ethereum show how crypto can make the world of finance more open and transparent; Flow will do the same for consumers of entertainment and culture.”
“Warner Music is always searching for new opportunities for our artists and has dedicated itself to exploring emerging technologies to enable these.”
Jeff Bronikowski, Warner Music Group (pictured main)
Jeff Bronikowski, SVP, Global Digital Business Development and Head of Innovation and Emerging Technology at Warner Music Group, added: “Warner Music is always searching for new opportunities for our artists and has dedicated itself to exploring emerging technologies to enable these.
“When we met with Dapper Labs, they immediately understood our vision so we sought to solidify the partnership through this strategic investment.”
“We are eager to learn more from Dapper Labs, some of the most talented pioneers in the field of blockchain-gaming, while bringing our own experience of the gaming industry and triple-A development.”
Nicolas Pouard, Ubisoft
Nicolas Pouard, Blockchain Initiative Director at Ubisoft’s Strategic Innovation Lab: “When it comes to new technologies and innovation, Ubisoft has always favored a collaborative approach.
“We are eager to learn more from Dapper Labs, some of the most talented pioneers in the field of blockchain-gaming, while bringing our own experience of the gaming industry and triple-A development.
“As a player-centric technology, we believe blockchain can help make players true stakeholders and we can’t wait to see what we will achieve with this partnership.”Music Business Worldwide
