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CAPinsideMärkte2 MIN READING TIME2018-07-11

Alissia builds a music streaming service with Blockchain

Alissa, a startup from Munich, builds a personalized radio. The key technologies Blockchain and Artificial Intelligence are used here, but does this result in individual benefits for the user?

The blockchain technology is on everyone's lips and finds an application in more and more developments. Last year showed that the use of technology alone can contribute to the increase in enterprise value . Blockchain advocates , in particular, believe that technology will change the Internet and politics over the long term . For opponents, there is hardly any meaningful field of application, which can not be mapped by the use of a database . In addition, the development of an intelligent database is easier and faster. Nevertheless, the blockchain is now also included in the music streaming .

However, this market is to be defined as particularly ungrateful for newcomers , because with Spotify there is already a market leader . In addition, Apple and Amazon also offer their own music streaming services , which rely on a broad customer base. With Youtube now the next big supplier has arrived on the market. The rather small provider Deezer , on the other hand , relies on personalization and curated playlists . Tidal streams the music in a particularly high quality and thus attracts the owners of expensive stereos and high-quality headphones. Thus, the crucial question arises whether there is still room for another provider ?


Personalization is the focus

The Munich-based startup Alissia , on the other hand , relies on the two key technologies Blockchain and Artificial Intelligence , which should offer customers a particularly high degree of customization . According to Bosco Bellinghausen , the founder of the startup , the two technologies are causing quite a stir, with the result being ultimately the focus of customers . Already in 2017 , the entire product of the company could be represented by a private blockchain . In addition, the artificial intelligence provides for the much needed personalization of the offer . The customer should receive a separate AI instance for the finished product, which is secured by blockchain technology. Thus, the data should remain in the hands of the customers .

But even customers who only value listening to music should automatically receive the right music via the AI . The focus is on the current situation and the individual mood. This approach is not new and will be followed by other streaming services . But Alissa goes one step further and pushes the use as a personal radio that offers a suitable program for the individual . According to a study commissioned, most people still listen to the radio, avoiding repetitive song selection.

Streaming is also a disadvantage for the artists , as the revenues were comparatively manageable . However, this is not due to the streaming providers, but to the rightholders who have signed the contracts with the streaming providers.

Blockchain can outweigh streaming disadvantage

The special advantage of Blockchain is the possibility to remunerate the artist directly . Here, a peer-to-peer network is used, which allows direct transactions . Thus, rights holders, publishers and labels are excluded and the artist and his performance are rewarded. Currently, only large and well-known artists are preferred by the streaming, so that small bands can hardly live by marketing their own music.

For Alissa, being a niche player is the right way to enter the market because it has to be personalized and personalized. The combination of the two technologies does not seem to make sense at present , but the technology offers the potential for smart development to differentiate itself from competitors.