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The media and entertainment sector is popularly growing among the most rapidly growing industries in the global market because of technology changes, consumer preferences, and the need for new materials.
One of the most revolutionary technologies ever to leave an impact on the industry is blockchain.
The term blockchain was first associated with the stimulus of cryptocurrencies such as bitcoin, but the application of blockchain has gone far beyond the financial sector, especially via the media and entertainment industry.
In so doing, blockchain is revolutionizing the very essence of content creation, delivery, and revenue generation through openness, safety, and decentralization.
This article discusses how the disruptive technology known as blockchain helps the media and entertainment industry, providing insights on content production, distribution, rights, payments, and fans.
The concept behind blockchain technology
Blockchain is an open-sourced, distributed digital database that can store and revise data of multiple parties with integrated logging and verification of transaction records.
Each record, or “block,” encompasses a set of transactions that are connected in a chain (from whence comes the term ‘blockchain’).
When data gets input into the blockchain, it cannot be changed or deleted; hence the data holds credibility.
One of these failures is immutability; besides decentralization and transparency, the key feature underlines the potential of blockchain in overcoming various issues in the media and entertainment industries where security, provenance, and payment systems play an important role.
Blockchain has been proposed for its potential impact on content creation
Enhanced and Simplified Intellectual Property Right Regime
Of all the issues that are likely to impact content creators, and more so in the media and entertainment industry, the issue of intellectual property (IP) rights is one of the biggest.
Unauthorized use and infringement, distribution, and piracy are rife, resulting in loss of revenues and denying many creators their just dues.
Through the blockchain, content owners are able to place a hash value of the work they have produced on the blockchain the moment it is made.
This gives a means of an unchallengeable check on the fact that a particular inventor owns the invention, which in turn safeguards intellectual property rights from the time of inception.
Moreover, the ownership of content can be tracked on how it is being used or distributed through the blockchain; this helps the owner act against piracy.
In addition, since blockchain-based systems have infrastructure, they can automatically impose licensing agreements.
For instance, smart contracts—contract codes written right into the blockchain—can be designed to release funds or initiate specific actions on their own based on program-set parameters.
This is particularly relevant for authors and content providers who transfer their rights in a particular work to distributors or media companies to guarantee that compensation is made depending on the contract provision.
Singer acted very responsibly when it came to producing and publishing its content by focusing on the content provenance that has to be both transparent and secure.
One of the continuing difficulties is how digital assets can properly document their origins, meaning that the content is authentic and has not been modified.
For example, in the music industry, it may take several intermediaries in that a song or video may be first produced by the artist, sold to record companies, distributed to distributors, and then sold to Internet service providers.
These players can change the content occasionally, often without the consent and, sometimes, the awareness of the creator.
Blockchain provides the basis for creating an immutable and verifiable trail for content origin and distribution. Every time content goes from one hand to another, from its author up to its user, it can be recorded on a particular blockchain, and it may reveal where the content has been, who has had it or used it, and how it was used.
This allows the providers of content and the users of the content to be sure that the content you are getting is genuine and from whom it was sourced.
Decentralized distribution models are the final type of management structure in distribution channels
Traditional content distribution models are strongly dependent on intermediaries, whether they are streaming services, record companies, or broadcasting channels.
Many sometimes use these large middlemen to distribute content, earning most of the revenue while the providers receive a meager amount.
Social media distribution is now more decentralized with the use of blockchain, eliminating middlemen in distribution.
With blockchain, it becomes easier for content creators to sell their content directly to the consumer, the so-called cutting out the middlemen, or, as we saw above, get a higher cut of the profits.
This is especially helpful to the indie artists, filmmakers, musicians, and others involved in the creative industries who otherwise have little to no voice in deciding how their work is distributed and to whom, and do not often receive a fair share of compensation.
For instance, similar to Audits currently operating in the music industry and YouTube in the video streaming industry, the creators have an opportunity to upload content and distribute content directly to their audience while leveraging blockchain to guarantee full control of content and earnings by content creators.
These platforms apply blockchain technology in the facilitation of secure and efficient transactions since every interaction with the content is paid fairly to the creator.
Improved effectiveness in the dissemination and distribution of content
Blockchain is a very positive attribute for this solution because it will enable the optimization of the licensing process by applying a secure and transparent method of license management.
Smart contracts are capable of handling the licensing problem by assuring that every time a particular content is used, say through streaming, broadcasting, or downloading, the creators of the content are paid.
“These contracts can be pre-programmed to pay the rights holders about specific conditions, such as the number of views, streams, or purchases of downloads, in real-time and with legal tender.”
When content distribution and licensing are implemented on the blockchain, there are far fewer inefficiencies lost to manual contract negotiation, royalties, and payment distribution compared to traditional methods.
Blockchain in Royalty Payments
The royalty payment structures themselves are complicated, and quite often, even within the media and entertainment industry, the use of equity remuneration methods that attract talents delays payments and disputes over revenues.
Since so many individuals are dependent on it—artists, producers, record labels, distributors, streaming platforms, etc.—royalties calculation and distribution is frequently a lengthy and ineffective process.
This problem can be solved through the use of smart contracts when using blockchain technology in the music industry.
Authorising these contracts allows for the automatisation of payment of rights holders, based on principles such as the revenue share that should go to each party.
For instance, when the song is being played on platforms such as Spotify, the blockchain can facilitate royalty payments to be made and delivered without delays and inaccurately to the songwriter, the performer, and the producer, together with other investors in the revenue circle.
Blockchain can therefore help the media and entertainment industry do away with middlemen, as well as the possibilities of mistakes or fraud.
Blockchain can also enhance the clarity of royalty payments so that rights holders can demand to know every time they are paid and in what amount. Real-Time Payments and International Access
Apart from automating payments, real-time payments can be processed through blockchain and could enable creators to pay instantly.
This is especially good news for independent creators who can take ages waiting for their money from the more conventional distribution networks.
Like in payments, blockchain also allows for cross-border transactions that do not require one to change their currency.
This is especially a bonus to the creators who retail their products to the global market since it cuts costs and time when conducting business across borders.
Currently, popular crypto assets such as Bitcoin or Ethereum allow creators to be paid directly; thus, transactions occur instantly and are not bound by geographic borders.
