- Blockchain in the media and entertainment industry can build innovative business models to offer new monetization strategies for digital assets of content creators.
- I wouldn’t mind reading an article using my Time Warnet internet connection by paying a small price rather than buying the entire subscription.
- Blockchain can empower all types of content owners to monitor their copyrighted material carefully.
Blockchain in media and entertainment? Wait, wasn’t it associated with cryptocurrencies such as bitcoin? Yes, but it has much more potential than we believe. In the media and entertainment industry, it can assist with not just content, but protect and monetize intellectual property.
Let’s go back and have a brief overview of blockchain. It’s the type of data structure that can create a digital ledger of transactions. This ledger can be shared among a distributed network of computers. The platforms built on blockchain can record and distribute and unchallengeable version of the truth to multiple parties. This could be useful in improving the effectiveness of the value chain in the industry.
Ways it’s Changing the Media and Entertainment Industry
Now let’s move to the big question? How is blockchain changing these two industries? If it can offer better security and transparency, how so? These are some ways:
Micropayments for Content
When content creators sell media using a subscription-based gateway, they miss out on the revenue from those customers who don’t want to pay for the entire subscription but wouldn’t mind paying a small fee to read one blogpost or binge-watch a season of the TV show. I am among those customers myself. I wouldn’t mind reading an article using my Time Warnet internet connection by paying a small price rather than buying the entire subscription.
If creators switch to the pay-per-use consumption, powered by micropayments of blockchain, this would be more feasible. It can keep a comprehensive record of data to allow accurate tracking of when and how your content is consumed. With blockchain, you can make this pricing model fully automated and cost-effective as well.
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No Content Aggregation
The decentralized structure helps content creators to distribute their work directly to customers without using the traditional distribution channels. This means they won’t have to share their revenue with a third-party. This could impact not just large media houses but bloggers. However, artists will be able to develop a direct relationship with customers.
It’s more and more complex to collect and distribute royalty payments now that the music streaming services are expanding widely. Every time a song is played in the background of a show or streamed online, technically distributors must compensate the copyright holder. But that’s not the problem. Disputes arise over accuracy and compensation rates.
Blockchain is here to the rescue. When smart contracts are created and attached to music, precision is increased. The terms of the contract are executed among the eligible parties automatically.
It helps track the usage of songs, execute royalty payments quickly, and make sure the terms of the contracts are fulfilled with complete transparency. Chances are, this would eliminate the role of copyright collection associations altogether.
Consumer to Consumer Sales
Blockchain can empower all types of content owners to monitor their copyrighted material carefully. With peer to peer file sharing of movies, TV shows, and other content, it’ hard to keep track of the copyrights. However, file-sharing has the potential to become a legitimate practice that can be monetized along the way.
Let’s say a consumer purchases the content hosted by blockchain and then shares it with a friend. Content owners will be able to track that and charge a fee for even that distribution. Content creators will enjoy an additional revenue stream. Plus, they will know how their assets are shared and consumed.
Digital objects can easily lose value because it’s so easy to copy them. This happens in TV shows, movies, and music. Blockchain can put a stop to this. Creators can register the origin of their work and even set sharing permissions. They can structure the exchange of content and create conditions for digital scarcity. This is much needed today.
But There Are Some Challenges …
Blockchain is and can change the two industries in question but there are certain challenges. The technology is not mature yet.
And if you are an early adopter, you have to keep yourself aware of the potential challenges and costs. The technology is currently unregulated. The standards for utilizing it for creating value and yet to be created. So, it doesn’t make sense to implement it now.
To achieve the full benefits of blockchain, this would mean you have to replace current technology in some specific cases. However, it will take time to integrate it into the existing processes. Then comes the question of where this intellectual property will be stored. A lot is unanswered yet.
No doubt, blockchain technology has the potential to transform a myriad of industries. The content offered is going to be secure, personal, and controlled. However, it’s not as easy as setting up Spectrum app on FireStick. So much yet needs to be planned and developed to actually implement this technology in media and entertainment.