Blockchain technology is quickly gaining popularity, with key industries like banking, education, healthcare, automotive, and retail looking into its potential advantages. However, when it comes to the application of Blockchain technology, the media and entertainment sector is often one of the most underappreciated.
The intriguing thing is that the media and entertainment industries are particularly suited for a Blockchain revolution and benefit substantially from the technology’s many opportunities. So let’s explore the impact of this technology on the media and entertainment industry in this blog.
An overview of Blockchain technology
The technology initially intended to serve as the foundation for Bitcoin is now available for use in several new business applications and industries. Essentially, it makes it possible for transactions to be executed between a sender and a recipient in a network without the necessity for a central authority, thereby boosting speed and lowering transaction costs.
A Blockchain is basically a distributed ledger in the digital realm. It captures transactions in virtually real-time, chronologically, and immutably.
The agreement of the nodes in the network is necessary before a transaction can be added to the ledger. It offers a continuous control method for data quality, manipulation, and mistakes.
Role of Blockchain in the media and entertainment industry
Along the media value chain, many stakeholders have recently arisen. It includes artists as the primary content producers, aggregators, and network providers, in addition to a third party handling royalty payments (depending on the country and type of media).
Blockchain applications have the potential to change industries drastically.
Bypassing content aggregators, organizations that collect royalties, and network providers are made possible by the technology. This will give the content owners control over the market. As a result, future Blockchain-based payment and contract solutions eliminate complex components of the media and entertainment value chain risk.
In fact, this disruption has the potential to fundamentally alter how pricing, publicity, revenue sharing, and royalties are paid. The centralized authority could no longer be necessary for transactions or advertisement sales. Financial transactions could be less expensive, and the distribution of profits may be automated if predefined smart contract solutions are used.
Impact of Blockchain technology on the media and entertainment industry
- Decreases IP infringement
The media and entertainment industries have to pay a high price for digital piracy, fake copies, intellectual property (IP) infringement by studios, and the duplication of virtual content. Enterprise Ethereum enables artists and producers to manage and maintain IP rights on a time-stamped, immutable ledger and digitize the metadata of their original content. In addition, it is simpler for creators to protect their rights when a legal infringement happens because of a Blockchain’s append-only nature.
- Reduces dependency on intermediaries
Intermediaries abound in the media and entertainment industries. According to a report, the US music business spends an all-time high of $43 billion annually, while artists only receive $5 billion, or approximately 12% of that total.
On-demand streaming services like YouTube, Spotify, Apple Music, and Soundcloud are intermediaries and key participants in the music business, such as record labels, music publishers, music managers, and music distributors.
- Enables micropayments
The Blockchain keeps track of each use of a piece of content once a content provider has registered it on the network. Real-time, adaptable, and completely transparent consumption-based pricing techniques, such as metered billing, are made possible by this tracking. In addition, automatic micropayments among the viewer and the creator can be carried out through smart contracts.
- Enables P2P sales and content distribution
With the help of Ethereum, artists can automate a sizable percentage of the administrative tasks related to contracts, licensing, and payments. As a result, creators can distribute their work directly peer to peer after the contractual-based activity, which is often replete with intermediaries, is automated and executed at a fraction of the cost.
Markets for digital content built on the Blockchain enable direct communication between producers and consumers without the necessity of expensive intermediaries.
- Streamlining royalty payments
Artists can submit original works, self-publish, manage distribution, and control license choices on a platform built on the Blockchain. Every piece of content’s royalty payments could be incorporated into a smart contract and set up to be paid to the creator whenever it is used.
Final thoughts: Future of the media and entertainment industry
Over the past few decades, the media and entertainment industry has experienced notable expansion. The issue with the industry, though, has been the domination of just a few creamy layers of content-producing corporations and music recording giants who make vast sums of money. At the same time, the rest aren’t given their fair share.
The industry’s challenges can be significantly reduced by using Blockchain technology and quickening the development of Blockchain solutions. In addition, the widespread adoption by an increasing number of media and entertainment companies can force the sector to embrace a more fair, open, and improved approach while also offering doable solutions that alter how we use media and absorb information.