EDM is the biggest online based genre of music in the world, so it came at little surprise when industry label leader, Monstercat, announced that they would be accepting the first online currency, Bitcoins. Besides Monstercat, there are only a handful of other organizations who have embraced the controversial but exciting new currency that has been creating a tremendous amount of buzz this past year. Over the course of 11 months, bitcoins soared from $13.50 per coin, to a staggering $1,200 and continues to grow in value. Being separate from the government, bitcoins are the currency of the future that can be earned by anyone who knows how to mine them. So why is Monstercat the first EDM organization to embrace bitcoins? We talked with William to find out more:
YourEDM: Hi William, thanks for taking the time to speak. Why have you begun accepting Bitcoin?
William: We have been following Bitcoin for awhile now. Initially it was just a hobby of a few of us within the company. Every now and then the price would jump up, which often led us into deep discussions and speculations on the future of Bitcoin and its impact on our industry. We wanted to do something that could benefit the Bitcoin economy, as well as provide another way for fans to support our artists. Selling our music with Bitcoin seemed like a natural way to do that.
On the label side, Bitcoin is changing the way we think about music distribution. Right now most of our sales are done through third party stores (iTunes, beatport, bandcamp, etc). It is convenient and currently beneficial if we want to reach the largest amount of people, but it does have its downsides. Sometimes stores (with distribution fees) take up to 60% off. With Bitcoin, we don’t have to pay anything (except really small transaction fees).
We think Bitcoin has the potential to really change the way people pay for things and support the things they like. Everyone knows how to send an email to their friend, imagine if sending them 10 bucks was just as easy? If it’s easier for our fans to get our music and support their favourite artists with Bitcoin, then ultimately we are interested in exploring that possibility.
YourEDM: How did the first Monstercat Bitcoin Sale go?
William: To be honest, I figured we would get maybe a handful of sales from a few hardcore Bitcoin supporters. We ended up getting 50 orders on monday, totalling ~1 BTC, which is about $1100 at current exchange rates. This is crazy! Not what we expected at all. It was kind of a reality check for us and really solidified it as a potential route for selling our music in the future.