Israeli start-up, Music Messenger, developing blockchain technology as an alternative to current music services.
August 20, 2018 — TEL AVIV, Israel–(BUSINESS WIRE)–Music Messenger is a technology company specializing in music streaming, messaging, API infrastructures, and now blockchain.
Music Messenger has been working on developing a blockchain-based alternative to Spotify. What Music Messenger proposes is that users will pay for Music Messenger Tokens (MMT) or earn them by listening to ads. Their wallet will then pay out a fraction of a cent per song to stream from decentralized storage across the network, with artists receiving 90 percent — compared to roughly 50 percent on the leading streaming apps. The rest goes to compensating whomever is hosting or streaming that audio track or file.
Based in Israel, Music Messenger has raised $25 million since its formation in 2014 in two successful rounds of financing. Investors include music icons such as Avicii, will.i.am, Nicki Minaj, Tiësto, Sebastian Ingrosso, Benny Andersson, David Guetta, Gee Roberson (the former Chairman of Geffen Records, manager of T.I., Nicki Minaj), Dave Holmes (manager of rock band Coldplay), Wayne Barrow (the former manager of Notorious B.I.G.), Mark Pitts (President of Urban at RCA Records) amongst other luminaries from the music industry. In 2015, businessman and owner of Chelsea Football Club Roman Abramovich invested $15 million in the start-up. The technology developed by Music Messenger has a deep infrastructure and API integration value, applicable to multiple industries, especially if utilizing blockchain.
Music Messenger plans to launch its open-sourced product in beta in early 2019. Yet, it’s already found some powerful investors that see Spotify as vulnerable to the cryptocurrency revolution.
Investor and board member, O.D. Kobo, has stated, “It’s been a long and difficult journey, we’re excited for the integration process, learning new things and the release.”
Oded ‘O.D.’ Kobo is an accomplished internet entrepreneur and businessman with over $250 million in technology related exits over the last two decades.
O.D. Kobo is co-founder and partner at PIR Equities, an employee owned private equity group. Established in 2007 and led by former GoldmanSachs executive Joseph Aaron Horowitz, PIR Equities manages a varied portfolio including interests in property, securities, technology and ownership in operating businesses with over $650 million in assets.