The electronic music sector is seeing a boom because to blockchain, which fosters industry cooperation and client loyalty.
Blockchain technology is frequently connected to the financial sector, namely with the typical suspects like traditional finance (TradFi) and decentralised finance (DeFi). Any industry that depends on data and interactions, however, can be transformed by the technology because it is industry-agonistic. The entertainment sector, more notably the electronic music market, is one of the areas that could profit from the use of blockchain technology.
In this article we’ll discuss extensively about the challenges facing the electronic music industry, benefits of blockchain technology for the music market and how electronic music industry transform blockchain platform
Challenges facing the electronic music industry
Dance music, which is expected to have a market value of $10,2 billion in 2022 and a devoted following of hundreds of thousands of people, has long struggled to give back to its ardent fans.
Up until now, there hasn’t been a strong international community that successfully communicates and benefits from the significant contributions that these fans have made to the scene.
The electronic music industry is very fragmented, therefore there are many independent clubs, festivals, musicians, and DJs operating all over the world. Collaboration efforts may be hampered by the absence of a common platform and coherent plan for sustained growth.
The absence of client loyalty and retention programmes is another problem. Regular clubbers and partygoers receive few incentives, which deters patrons from continuing to support the establishment. The ecosystem’s enormous potential for customer engagement and retention will remain unexplored in the absence of such programmes.
The potential for a more connected and involved electronic music community is constrained by the current incentives gap, which weakens the ties between the audience and the clubs and festivals they frequent.
What are the advantages of blockchain technology for the electronic music market?
These problems could be solved by blockchain technology, which also provides a lot of additional benefits, allowing the industry to evolve and keep up with new developments. The majority of market participants in electronic music are, in reality, largely ignorant of how significantly blockchain technology can alter the dynamic.
Blockchains have special characteristics like decentralisation, transparency, and improved security that can revolutionise interactions and strengthen communities. By rewarding frequent clubgoers and festival goers with tokens and building a strong customer loyalty system, a blockchain-based loyalty programme can increase customer retention rates.
Additionally, the technology can reduce fragmentation in the electronic music sector by offering a shared ledger that enables cross-border exchanges and interactions. Through decentralised platforms, clubs, DJs, producers, artists, and other stakeholders can more easily collaborate, supporting an industry-wide growth plan. Artists and clubs can conduct direct peer-to-peer transactions, discussions, and revenue sharing without the need for middlemen by building trust through the blockchain’s transparency and immutability.
This decentralised strategy fosters open collaboration, makes it possible for more secure and efficient transactions, and fosters a sense of community and cooperation among participants in the sector.
The electronic music industry and nightclubs can both be transformed by this blockchain platform.
A specialised blockchain platform with various functionalities is currently available that the electronic music business can use to overcome its current obstacles. The ecosystem, also known as KlubCoin, expands on the promise of the technology’s revolutionary potential.
KlubCoin reduces fragmentation and promotes collaboration and engagement thanks to its blockchain-based approach that links fans, artists, clubs, festivals, and sponsors. This helps an ecosystem become more stable and dynamic.
The native utility token, KLUB, which powers the KlubCoin network. It performs a variety of functions, primarily for a global loyalty programme and providing cashback benefits. The token can also be used to pay for goods, tickets, and a variety of other services in bars, festivals, and online shops. The token’s adaptability makes it easier to make payments, receive cashback benefits, tip artists, and access gated live streaming, all of which improve user experience within the electronic music ecosystem and the developing metaverse.
KlubCoin uses a bridge mechanism to allow its token to be hosted on significant blockchains, such as Ethereum, enabling it to take use of a multichain network. This strategy facilitates integration with multiple DeFi protocols and assures a high degree of liquidity.
The platform enables practically real-time verifications and transactions due to the functionality offered by the underlying chains, enabling smooth user experiences both online and offline.
Conclusively, market participants who adopt a blockchain-based ecosystem can grow their consumer base and take advantage of a global loyalty programme. Users simultaneously benefit from an improved party experience. KlubCoin’s expansion is reviving the electronic music business and opening up new prospects.