CT-AI Labs CEO Sang-Sik Joo announced the initiative at the developer conference of South Korean crypto exchange UpBit, local IT news outlet ITChosun reported on Sept. 4.
Korean pop music giant SM Entertainment revealed plans to build its own cryptocurrency and blockchain in partnership with tech organization CTIA Labs.
Joo noted that they are currently discussing the project with partners who will build the platform, but the details cannot be revealed yet.
SM Entertainment reportedly expects the blockchain platform to bridge the physical and virtual world. Joo commented on the development by defining the function that he sees blockchain having in the entertainment industry, saying:
“Blockchain from the entertainment standpoint is a decentralized entertainment entity.”
A major industry player
SM Entertainment is the largest South Korean entertainment company. Company data website Crunchbase estimates the firm’s annual revenue to be $350 million.
The music industry has been seen as a major opportunity for blockchain technology. Interestingly, it is believed to be a tool capable of disintermediating it, allowing direct economic interaction between fans and artists who would also get a larger cut of the value they create.
As Cointelegraph reported in a dedicated contributor piece in June, blockchain is also seen as a way to contrast the censorship of music that is often also a form of protest.