Blockchain is a popular technology in the media, entertainment, and advertising industry. The quick adoption of this technology is transforming the media industry with real-time consumption. Based on recent research, it is expected that there will be considerable growth in the media industry with the amazing innovation of blockchain technology.
In this blog, let's discuss the role of blockchain in the media industry and its use cases and benefits in the specific sector.
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Purpose of Blockchain in the Media and Entertainment Industry
Blockchain technology is changing the face of the media and entertainment industry through piracy prevention, transparency, and direct access between artists and fans. Its read-only nature provides security, which has led to the establishment of a trust for centuries on problems such as copyright infringement. In royalties, such smart contracts streamline payouts to authors so that creators don't suffer huge cuts at the hands of middlemen.
Blockchain makes it possible to create and trade digital assets, like NFTs. As a result, it allows fans to have something unique, tied either to their favorite artists or films. As adoption grows, entertainment companies are exploring blockchain applications for interactive, web3-enabled content, transforming audience experiences from passive consumption to active participation.
Benefits of Blockchain in Media and Entertainment
The music industry largely continues to rely on outdated systems and business models from the era of physical media distribution rather than adapting to digital releases via the Internet. Only a few major players have embraced digitization, dominating the streaming market while limiting profits for artists.
Using the open and decentralized Ethereum platform, the entertainment business may profit from:
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Reduced intellectual property infringement
Digital piracy, counterfeit copies, infringed studio intellectual property (IP), and the duplication of digital items lead to an estimated annual loss of $71 billion for the US film and TV industry. Enterprise Ethereum enables artists and creators to digitize the metadata of their unique content while managing and storing IP rights on a time-stamped, immutable ledger. The append-only nature of blockchain simplifies the legal enforcement of creators' rights when infringement happens.
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Elimination of middlemen in content distribution
The advertising and media industry is heavily populated with intermediaries. According to CitiGroup, US music industry spending has reached a record $43 billion annually, artists receive only $5 billion, which amounts to roughly 12 percent of that total. On-demand streaming platforms like YouTube, Spotify, Apple Music, and SoundCloud act as intermediaries, alongside traditional industry players such as record labels, music publishers, managers, and distributors.
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Direct monetization of copyrighted assets through smart contracts and peer-to-peer micropayments
When a content producer registers their work on a blockchain platform, the blockchain records each instance of that material's use. This tracking allows for real-time, adaptable, and fully transparent consumption-based pricing models, such as metered billing. A smart contract can facilitate automatic micro-payments between the consumer and the creator.
Applications of Blockchain in Media and Entertainment
Numerous blockchain applications exist within the advertising and media industry. Below are some of the leading use cases identified by Consensys:
Peer-to-peer sales and distribution of content:
By leveraging Ethereum, artists can automate much of the business administration related to licensing, contracts, and payments. Once the contract management, often burdened by intermediaries, is automated and executed at a significantly lower cost, creators can sell their work directly in a peer-to-peer manner. Blockchain-based marketplaces for digital content enable creators and consumers to engage without the need for expensive intermediaries.
Simplified royalty payment processes: On a blockchain-based platform, artists can upload their original works, self-publish, and control licensing options while managing distributions. Royalty payments can be encoded into a smart contract for each piece of content, allowing automatic payouts to creators upon usage.
Usage-based billing models:
Currently, customers pay content aggregators for access to advertising and media services such as YouTube, Hulu, Tidal, Amazon Prime, and Netflix. As users face an overwhelming number of streaming options, there is an opportunity for pay-per-use consumption-based models. Blockchain technology can maintain a detailed record of media usage data, facilitating efficient micro-payment pricing models.
How Osiz Assists the Media and Entertainment Industry With Blockchain Technology?
Osiz, the leading blockchain development company, leverages blockchain technology to empower the media and entertainment industry by streamlining royalty payments, preventing piracy, and enabling direct artist-to-fan interactions. Through smart contracts and decentralized platforms, Osiz ensures transparent monetization of digital assets, enhancing trust while minimizing intermediaries and maximizing profits for creators. Partner with Osiz to improve your business with privacy, scalability, and decentralization via blockchain.