How Will Blockchain Impact the Entertainment Industry?
Published: Apr 26, 2018 Last Updated: Apr 20, 2023Views: 14926 min. read
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Shanal is a passionate advocate for crafting innovative solutions that address real-world challenges and consistently deliver outstanding results for TechAhead's clients. As a strategic and creative leader, he specializes in driving revenue expansion, developing client-focused solutions, pioneering product innovations, and ensuring seamless program management.
Blockchain and entertainment are two industries that have been making headlines in recent years. As one of the most fashionable words of 2017, blockchain has gained a strong foothold in the entertainment industry. The question then arises: what does blockchain mean for studios, new media companies, and networks? How will it impact these industries in the years to come?
Before 20 years media industry was revolutionized by the internet. Similarly, blockchain technology is here to revive the entertainment industry. In apparent expression, blockchain technology, first of all, encrypts the information in an unblocked and unsecured “decentralized ledger” environment. This further reduces the gap between the end users by removing the centralized system. The most popular variety of blockchains, Bitcoin, takes in the proper use of “cryptocurrency” to start financial dealings.
On the contrary “Ethereum” utilizes various exchange methods, which include bitcoin, but it also offers “smart contracts” which allow one to extend the application of blockchain past just financial dealings. It’s worth noting that only with the help of rapid digitalization, transforming the way entirely how content is generated and delivered, one thing to note here is that M&E businesses are required to handle their intellectual property carefully. Blockchain exactly comes to the scenario right here. The exquisiteness of this technology is that it offers a distinct way to store content and similar assets and establish faith as well.
The television industry is a significant stakeholder which ought to get benefitted by way of availing blockchain technology in different ways such as – advertising, distribution, content formation, and authentication.
It hardly matters whether the ultimate objective is stronger security and consumer privacy or additional flexibility; the result ought to be the same that is eradicating, if not eradicating at least diminishing the effect of – the “middleman” for sure.
It’s better if we now have an insight into a few ways in which blockchain technology has significantly contributed to impacting the management of content rights concerning the entertainment industry:
Rightly starting from Sony to HBO, Hollywood has witnessed the act of data being hacked and data leaks as well in recent years. This makes sense that the higher authority and the members of this industry are not alert.
The fact that blockchain includes decentralized structure, cryptography, and sequential hashing: lands up making the deals highly secure and virtually inaccessible for hackers.
Also read:Why Our World Would End If Cyber Security Disappeared?
It is worth noting that in the case of blockchain technology, the prerequisite condition for a large distribution unit is terminated. One of the most beneficial things to note here is that content creators have the discretion to set free their task directly to customers without having an opportunity to deal with a massive organization or media house institution that will eventually take a major part of the profits.
Ultimately reducing the distribution network, and benefiting the creators and end users.
Well, coming down to the media industry, being paid is not a straightforward process. The primary thing to note here is that blockchain technology permits the creator to let them distribute the content and get paid instantaneously.
Moreover, the foundation is based on smart contracts which later on end up using blockchain-based cryptocurrencies like Ethereum and Bitcoin. Something worth noting is that self-accomplishing intelligent deals can pave the way to prompt royalty remittance at a near-zero cost.
Digital rights management also known as the cousin of micropayments, blockchain holds a high share in it. Upon unraveling the past, it has been noted that producing and selling content had always been a long scuffle concerning who owns the rights to this content. Right starting from Britain, which ended up enacting the world’s first copyright law in 1709 to Napster and BitTorrent in the recent past.
It is creditworthy noting that Blockchain comes up with a solution, with its immutable record-keeping and decentralized nature. All the big players must have noticed and analyzed Spotify, which ultimately had to come up with a decision of settling a lawsuit over unpaid royalties last year, recently acquired Mediachain, a digital rights management startup.
Now, Mediachain combines all the blockchain infrastructure with content ID tech similar to that of which is found in a Google image search. To create a “universal media library,” in which one can identify the “author and story” behind a piece of content.
In distribution terms, few priests were predicting if blockchain technology might be considered as the termination for what many call the “ultimate middleman,” the pay-TV (satellite and cable) institutions.
Whether this will take place or not is a question for debate, but as far as the immediate future is concerned, it has been observed that media companies are willing to look for some protocol that would ultimately end up helping fight the problem of never-ending piracy which arrives with the digital distribution. Phil Gomes (Blockchain expert at Edelman) says, “Due to rough patches in the legal dissemination system there are more chances of privacy leak.
Blockchain technology will assist in the smoother generation of money from content by minimizing pirates.” Widely observed, throughout the world that these days media organizations are looking forward to blockchain technology to implement safer rights payments.
An apt example of this would be the Open Music Initiative, which involves Warner, YouTube, Spotify, Sony Music, and Netflix, to improvise royalty payment dealings. OMI recently ended up disclosing that it will keep in mind the utilization of blockchain “to fundamentally clarify the way music rights owners are recognized and compensated, ultimately allowing a reasonable business version for the artists.”
Also read:Blockchain to Revolutionize Your Supply Chain Management
So, there is no doubt that blockchain technology offers many exciting applications which aid in solving problems that have plagued the entertainment industry for decades. Ultimately, effective utilization of blockchain technology could make the entertainment industry fairer and more equitable. These days, the immediate and sudden effect of blockchain technology can be felt at the more significant corporate levels of media.
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