Blockchain technology has revived the healthcare, finance, automotive, and retail industries, and the list does not end here. Several other business verticals are soon to explore the possible benefits of blockchain technology. The “entertainment and media industry” stands next on the list to experience the benefits of blockchain. What can blockchain offer to the entertainment and media industry? How can businesses generate more revenue?
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The industry considers the potential ramifications of blockchain technology as a whole, even though this technology is still in its infancy. And it happened because various industries had put their trust in this new technology and succeeded. Blockchain development can alter how the entertainment and media industry works like content creation, aggregation, content distribution, and consumption. Above this, nobody can ignore the blockchain implications for content creators and brokers.
What Is Blockchain Technology and How Does It Operate?
Blockchain is an encrypted database where all the members present on the distributed network can access the data conveniently. It is the most secure database that is very hard to invade the network as all the nodes need to be hacked over the network. Therefore, altering the database is quite tricky. Every transaction executed on the network is recorded, verified, and saved. That is how an unchangeable database is created.
Blockchain is known as the technology of trust among entrepreneurs. And it has mitigated the concept of third parties while promoting decentralization. All the industries are showing a keen interest in investing in blockchain-powered applications.
As the database control is spread on the whole network, the users can get real-time access to the data. The technology’s decentralised nature makes it faster, secure, and cost-effective among all the latest high techs in trend.
Market Overview and Few Facts About Blockchain For Entertainment
The blockchain in media and entertainment in 2020 was valued at $166.6 M, and it is anticipated to rise by 437.31 M in the coming 5 years, as per the studies. Blockchain technology is responsible for developing new business models and disrupting the current ones, especially in the media and entertainment sector.
- The media and entertainment industry has been transformed with the blockchain’s introduction, which is the most prominent technology. According to the reports, more than 555 media executives think that the blockchain comes under the top 5 technologies that the media companies are adopting. And in the coming 3 years, 83% of media executives are planning to invest in blockchain technology.
- The trend of blockchain is high due to one of its top benefits: the security of the content. And secondly, it removes the role of the third parties. And it makes the whole process straightforward between the content creators and the end users. The payment is also safe when using the blockchain. The increasing chances of data piracy/fraud in the entertainment sector have encouraged the demand for blockchain to prevent such incidents.
- As Blockchain has the potential to bypass the content aggregators and platform providers, so it shifts the power towards the copyright owners. It can increase the profits for the content creators and the media giants by offering real-time content consumption-based pricing. It reduces the transaction cost by 40 to 80%, increasing users’ interest.
- The administrative cost is also less as intermediaries are removed with blockchain in media and entertainment. And it also eliminates the administrative fee and the time for the payers and the providers. However, applying the new technology can be time-consuming and expensive in the initial days.
Blockchain’s Role in the Media and Entertainment Industry
The blockchain invention has reshaped the media and the entertainment industry by bringing drastic changes in content storage and distribution changes. The parties present in the traditional system, like content aggregators, royalty collection associations, and network service providers, are all removed by blockchain technology. And in a result, all the control is transferred to the content owners. Therefore, the new concept based on the blockchain can threaten the complicated parts of the entertainment value chain.
This significant change will radically affect the pricing policy, publicity, revenue sharing, royalty payments, etc. The role of a centralized entity is diminishing day by day as there is no need for them for transactions, advertisements, and sales. Moreover, the transactions will be cheaper based on smart contract solutions.
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Following Are The Most Beneficial Applications of Blockchain in the Media and Entertainment
Blockchain music entertainment offers comprehensive benefits to media organizations by reforming how content is created, consumed, and secured. The use of blockchain can improve several areas in the media and entertainment industry. And especially those areas are where the users get the maximum benefits like payment distribution, monetization, funding, and contract reinforcement due to high transparency and security.
1. Ending Aggregated Content
It promotes end-to-end content delivery as it enables the content distribution from the artists directly to the customers. With new content distribution methods, the content creators can take a large portion of the money generated. Artists can make direct contact with the content consumers.
2. Content Micro-payments
The subscription-based monetization can cause revenue loss to the owners from the consumers who are uninterested in paying based on monthly subscriptions. And also who like to pay a lower cost for watching a single web series or an article can disturb the membership-based payment system for consuming content.
Pay per use is the new model that is possible using blockchain-based micro-payments. As we know that the blockchain can maintain the bulk of records, precise data monitoring is easy, like when and how the patent content is consumed. So, the micro-payment pricing model will be based on the blockchain; otherwise, it can not be an ideal one.
3. Royalty Distribution
With increasing music streaming services, the collection and distribution of the royalties are complex now. Every time a song is streamed or broadcasted on the channel, distribution is a must for compensating the music’s copyright owner. Even After this, disputes regarding the accuracy and the royalties rate might rise.
On the other hand, integrating smart contracts with automatic execution on blockchain adds speed, precision, and trust to the whole process. So, the tracking of the song consumption is more precise with this technology. It can abolish the role of the copyright collecting groups.
4. Direct Sales to Consumers
Content owners can control their creations by better tracking the content over a blockchain network. With the traditional model, there are certain loopholes like illegal file sharing of series, films, and other types of content. Still, with blockchain, file sharing has the right potential to evolve while keeping away these types of threats from becoming legitimate.
Once the content consumer buys the content, the owners can track the whole scenario and charge for distributing the content if the customer shares it with his friends after purchasing. Because of this content creators can get extra money. And it also spreads awareness regarding the content consumption and distribution of intellectual assets.
5. Unique Digital Identity across Digital Channels
Digital identity can be more secure and trustworthy when based on blockchain technology.
Blockchain-powered digital identities are stored on the network and allow the safe transfer of digital assets. Following are the three blockchain applications for the digital identity:
- Blockchain-based digital identities for property buyers are the most prominent blockchain application in media through smart contracts. The identity may include all the information about the property for property auction for the financiers.
- Blockchain-powered identity for online shopping ensures the trustfulness of the KYC system. It offers accurate qualitative information for the classical identification of the data.
- Digital identities in the food chain industry are also valued based on the blockchain network. All the information liked on it will offer complete and verified details of the products.
6. Decreased Digital Ad Frauds
The cases of ad loss have been common in the media and entertainment industry from the starting times. Studies suggest that by the end of 2017, the ad loss was around $16.4B.
And the cases are rapidly increasing yet, so now the hopes are on the new tech arrival, the blockchain technology that can reduce the issue.
Most companies fail to evaluate if the ads offer them actual lead conversions.
Blockchain technology can provide the solution by letting you record the ads on the blockchain network, and you can get the verifiable Ad metrics. Blockchain can record how many times the advertisement was viewed and detect the nature of the traffic reaching the ad.
7.Influencer Marketing Wih Cross-Promotional Engagements
The next buzz thing in the digital market is influencer marketing. Influencers have a large following on social media profiles. So they quickly grab deals from different brands to promote their products and services. Blockchain smart contracts can be used to make the process more trustful and reliable.
- The smart contracts implementation can allow the influencers to get the payments automatically once they promote the content on their platform.
- All the payment obligations and the other conditions can be coded in smart contracts, which helps prevent potential problems between the advertiser and the influencer.
- Content monetization can be a seamless operation when blockchain technology is integrated into it and removes the piracy issues in the digital distribution of the content.
Getting Ready To Implement Blockchain in Media and Entertainment!!
The idea of Blockchain music entertainment can revamp the traditional system and unfold new opportunities for the content owners and the content consumers. The blockchain can boost the earnings of the content providers while enabling real-time content distribution baked on pricing for the users.
As the demand for this new implementation gradually increases, the media executives should start gaining knowledge about the same. It can be challenging at the beginning to understand how the blockchain can change the business model of the media and the entertainment industry. But considering the possible benefits and the strengths of the technology, you can step ahead without any worries.
No doubt, if you own a media or entertainment business and are interested in adopting this excellent idea, you need to take help from the experts to make a wise move; otherwise, it can be confusing for you what to do and how to do it. Therefore reaching out to experienced blockchain developers is all you need to do if you want to enter this new world of opportunities.