The technology that was designed to be the foundation for Bitcoin is now available for use in a variety of new business applications and industries.
It essentially allows transactions to be executed between a sender and a recipient in a network without the need for a central authority, increasing speed and decreasing transaction costs.
The implementation of blockchain technology in the media, advertising, and entertainment market is expected to grow at a CAGR of 40% between 2022 and 2030.
As per Accenture, blockchain is one of the top five priorities for 55% of media and platform executives.
The market’s expansion can be attributed to rising demand to eliminate intermediaries between end-users and content creators, an increase in data piracy in the media industry, and widespread adoption of blockchain technology in the advertising vertical.
Understanding Blockchain Technology in The Media Industry
With the implementation of blockchain in media advertising and the entertainment market, the design of this industry could completely change.
Blockchain technology licenses avoid content aggregators, platform providers, and sovereignty collection relationships. As a result, the copyright holders gain market power.
Blockchain innovation has the potential to expand the benefits available to content creators and media organizations. It offers critical industry insights into various existing business models to meet rising demand, resulting in market power shifts. It also reduces the possibility of digital fraud.
The solution reduces transaction and administrative costs by 40-80%. By automating sovereignty instalments and confirming computerized inventory network members, blockchain technology increases transparency even further.
Blockchain technology improves accountability in the media advertising and entertainment industries. This technology enables secure and faster transactions, which fuel market growth.
Blockchain technology’s role in the Media and Entertainment Industry
The implementation of blockchain applications in the industry has the potential to cause dramatic changes.
The technology allows content owners to gain market control by bypassing content aggregators, royalty collection associations, and network providers. As a result, new blockchain-based payment and contract solutions pose a threat to the media and entertainment value chain.
Indeed, this disruption has the potential to drastically alter pricing, publicity, revenue sharing, and royalty payment systems. In transactions or advertising sales, centralized authorities may no longer be required. Payment transactions can be made less expensive, and profit allocation can be automated using predefined smart contract solutions.
Impact of Blockchain technology on the media and entertainment industry.
The Media, Advertising, and Entertainment industry is rapidly adopting technological advancements and is constantly changing its norms and distribution practices to reach a large audience.
Let’s go through the list and analyze how blockchain technology impacts this industry:
Decreases IP infringement:
Infringement of intellectual property rights is the most common issue that musicians, content creators, artists, and game developers face (IP).
Big music groups and even some individuals frequently violate artists’ rights to complete authority over their music pieces or intellectual property, often by distributing or accessing the content without having to pay for it.
However, peer-to-peer (P2P) programs make it more difficult for content creators and media players to monitor and track how, who, and when their content is accessed and distributed, promoting online piracy of content/data or music files.
Reduces dependency on intermediaries:
Do you have any idea? According to one report, the US music industry spends an all-time high of $43 billion per year, but artists only receive $5 billion, or about 12% of that total.
Creators are frequently put at a disadvantage due to the presence of middlemen who eat into their profit margins. To reach a larger audience, creators in the entertainment and media industries are frequently forced to enlist the assistance of intermediaries.
In addition, to protect their intellectual property rights, they must pay a premium, which is then passed on to end users, raising the overall cost. Hacking is not prevented by digital management rights (DRM) software.
Once a content asset has been registered on the blockchain, the blockchain keeps track of each use of that content. This tracking enables real-time, adaptable, and completely transparent consumption-based pricing techniques such as metered billing. Smart contracts can also be used to make automatic micropayments between the viewer and the creator.
Enables P2P sales and content distribution:
Artists can use Ethereum to automate a large portion of the business administration work associated with licensing, contracts, and payments. Once the contractual-based work, which is typically rife with intermediaries, is automated and performed at a fraction of the cost, creators will be able to sell their work directly to peers.
Blockchain-based digital content marketplaces enable creators and consumers to interact without the use of costly intermediaries.
Streamlining royalty payments:
To manage their content distribution and upload original works, artists and content creators own the publishing rights and control the licensing. Every piece of content has smart contracts programmed with royalty payments, and payments for each one can be automatically paid to the creator based on the usage model.
Settlement of Streaming and Subscription Costs:
Blockchain innovation enables continuous utilization-based valuing of resources with a fixed state and computerized character. This arrangement reduces exchange costs by 40% to 80%, contingent fair, and square of reception and expansion in the business, making installment application the main fragment, among other things.
Cryptographic money, another well-known application, is used to make micropayments to content providers. Organizations use it to enable clients to buy and play single songs or recordings, for example, or to buy permission to read a news story.
What is the Future of the Media and Entertainment Industry?
The Indian media and entertainment industry has grown significantly over the last few decades. The issue with the industry has been the dominance of a few creamy layers of content-producing corporations and music recording behemoths who make huge sums of money. At the same time, the rest are not treated fairly.
The increased consumption of digital content, as well as the rise of streaming service platforms, have altered many aspects of the scenario. However, the issues of equitable revenue distribution and piracy remain the big elephants in the room that must be addressed.
The adoption of blockchain technology and the acceleration of blockchain solution development can provide a much-needed solution to the sector’s problems.
The widespread adoption by more and more entertainment and media companies can encourage the industry to take a more equitable, transparent, and better approach, while also presenting practical steps that change how we use media and consume content.