From medicine to retail and economics, there’s hardly any facet that blockchain has not pervaded. And now, it seems to be extending its sway to the media and entertainment sector. What then can we expect from blockchain use these unique industries?
This article closely explores:
- The potential of blockchain and digital assets in the growth of media companies.
- How blockchain adoption will aid content distribution and bolster the growth of the entertainment sector’s market share.
- Use cases that hightlight the value of blockchain within the media and entertainment sectors.
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Global Blockchain in Media and Entertainment Market Size Project to Hit 152 Billion USD
Thanks to the need for improved security and transparency, global blockchain in the Media, Advertising, and Entertainment market size seems to be on an upward surge. For a fact, the entertainment market is expected to hit a total worth of 152.1 billion USD come 2033. That’s a whopping rise from its USD 1.3 Billion market share in 2023 at a 61% compound annual growth rate
The need to display digital content to end-users directly (without middle men), the demand for faster and secure transactions, and many other factors are responsible for this growth. Besides, the continued adoption of crypto globally has triggered interest in the potential of blockchain technology and smart contracts in unconventional industries.
Benefits of Blockchain Technology in Media and Entertainment
“Has the Internet changed our lives? Have mobile phones changed our lives? The blockchain is something that is that transformative.”
These were the words of Brock Pierce suggesting that blockchain offers a disruptive technology that could change the way we act and do business. However, only a few people recognize the advantages that revolutionary tech like blockchain brings to media and entertainment.
Below are some important perks of distributed ledger technology in these industries.
- Protect Digital Content from Infringement
Intellectual property rights are central to the ownership of digital content. Sadly, these digital media are prone to theft, misappropriation and inordinate copying. Thankfully, blockchain makes it harder to reverse engineer original works, so, malicious third-parties cannot create pirated copies. Also, through immutable ledgers, the information of creators is etched into digital content, essentially making sure creators are recognized for their work.
- Quick Financial Settlements and Efficient Profit Distribution
Blockchain technology allows media companies to manage financial settlements without involving a third party. It goes a long way in reducing their costs of roaming and allows them to settle financial transactions a million times faster.
Besides, given the long supply chain of profits, scheduled smart payments are integral to allowing artists and other creators receive their share of the work directly and without hassles.
- Data Rights Management Solutions
Today, the ownership and usage data is siloed with record companies, music studios, publishers, and distributors in fairly complex ways. However, stakeholders can leverage blockchain technology to create self-executing smart contracts. This can make the digital right management for the video and music industry transparent, accessible and easy to understand. It can similarly help bypass content aggregators and ensure quick assets monetization.
How Blockchain Solutions Will Transform the Media and Entertainment Industries
Our guest expert, Evenlyn Balyton, believes that “Blockchain is projected to transform the media and entertainment industry within the next decade”.
Being an expert who regularly writes on how smart technologies shape global entertainment, finance, sports and the media, here are her key suggestions.
Asset and Content Security
One major problem with digital objects is that they get easily copied. This is quite common in the film and music industry with pirated content and intellectual property infringement. Unfortunately, digital piracy in whatever form it comes ultimately causes entertainment content to lose its value.
With blockchain technology in the media sector, a content creator can secure assets by tracking their usage on a ledger. They may as well limit sharing access to protect content, ensuring that users reward artists for their work.
New Revenue Streams
Most creators typically generate revenue through streaming service business models. However, profit distribution in the music industry, for example, means artists get to share profits with dozens of other contributors.
In turn, this necessitates new business processes for revenue generation. Blockchain opens up opportunities to make money via crypto-backed digital items and merchandise, exclusive to a creator.
Blockchain-based Marketplaces for Digital Content
Just like with NFTs and the web3 revolution, the role of blockchain technology can also extend to the creation of digital marketplaces for artists. There, artists and creators can sell digital collectibles while being guaranteed secure sale and content distribution.
Similarly, consumers can offer to buy the content they consume in virtual worlds, all backed by blockchain payments and smart contracts.
Blockchain Use Cases in the Media and Entertainment Sector
It was Dave Waters who said, “Blockchain provides supply chain capabilities that were not possible in the recent past.”
Unsuprisingly, he is right. As of 2021, over 40% of respondents to a Statista research revealed that they were already using blockchain as a secure information exchange and for asset tracking. Much more can be achieved if the technology makes it way into the entertainment industry.
That said, here are four use cases of blockchain in these sectors.
Peer to Peer Transactions
Blockchain platforms have made things a lot easier. Now, creators and consumers can distribute content using a peer-to-peer model. In addition, they can easily automate payments, licensing and even contracts, all while reducing cost.
Royalty Payments Disintermediation
Using blockchain could decentralize the entire process of receiving royalty payments. In the near future, artists can upload their original works, manage distributions and program royalty payments into smart contracts. This also offers the ability to interact without costly intermediaries in the profit sharing process.
Fraud and Piracy Prevention
Unethical practices like piracy and fraud are quite rife in the entertainment sector. And these ills have festered due to poor cataloguing attributes of traditional systems.
However, with blockchain’s powerful record keeping capabilities, every transaction is traceable. Besides, the technology offers irreversible contracts and cryptographic security that makes it impossible to bypass authenticity checks.
This technology will allow users easily identify scams and prevent fraud, even in niche aspects of the entertainment industry like gambling. Interestingly, MightyTips highlights some top betting brands that have beefed up their customer security by incorporating similar features.
Micropayments
A major trend in the media and entertainment industry is the adoption of blockchain technology for micropayments. This allows creators price media content according to consumption and in real-time. It also paves the way for new business models such as pay-per-use in media consumption.
Is Blockchain the Future of the Entertainment and Media Industry?
Nothing beats a system that allows artists get instant payments without intermediaries. Fans could own unique digital collectibles from their favorite movies or music. Plus, it can totally eliminate piracy since content is securely tracked and paid for.
So, yes. Blockchain is the future of the entertainment and media industry, and we can’t wait to see just how bright this future gets.
