Distributed ledger technology is continuing to be thought of as the technology that can address some of the issues that plague the music and content-creation space. Our Music Festival (“OMF”) is relying on this technology to develop a music festival and fan-interaction network that will be powered by its currency token, known as an “OMF Token.” OMF was founded by Justin Blau (the DJ known as 3LAU), Adam Lynn and Kevin Edelson and they are backed by a team of individuals from the talent management, music and festival sectors.
According to OMF’s white paper, OMF’s goal is to address three areas in the festival space that it believes needs improvement: ticketing, engagement and data. They note that in the existing model, a festival-goer purchases a ticket and the ticket serves no utility other than granting a one-time access to an event. OMF’s goal is to change the model so the purchase of a ticket gives a buyer access to the event and additional opportunities whereby the buyer can engage with artists and the festival, provide referrals, and earn tokens to redeem for future events, VIP upgrades, food and beverage, exclusive access and merchandise.
As attendees visit the festival grounds, interact with a festival’s app and make purchases (and in OMF’s case, use the OMF network), data is generated. OMF states that unlike traditional festivals and networks, it seeks to distribute the data that is generated at its events to the creators and those in the OMF network. OMF believes that blockchain technology has the ability to enable data to be controlled by the individuals who contributed to and represent the data instead of one entity, but “we’ve got to take the first step.”
The creation of a decentralized network for festival-goers that collects and shares data with artists and other attendees and is powered by a token raises interesting legal issues with regard to data privacy and securities regulations. Some interaction with the network (e.g., artist likes, concession purchases, etc.) may be aggregated and anonymized. But other information (e.g., name of original ticket purchaser, names of top fans of certain artists or other authentication information) may be personal in nature and certain consents and/or opt-outs may be necessary in order to comply with applicable privacy laws. In addition, the issuance of token can implicate securities laws. If the offering is a securities offering, the offering must be registered with the Securities and Exchange Commission and a number of requirements must be met prior to issuing securities.
OMF conducted a private sale earlier this year and will be hosting its first festival at the Greek Theatre at UC Berkeley later this month. The festival will feature performances by Zedd, Big Sean, 3LAU, Matt and Kim and Charlotte Lawrence.