Blockchain in Entertainment Industry
- Vikas Kumar
- January 27, 2023
- BLOG, MEDIA & ENTERTAINMENT
- entertainment and media market
- 0 Comments
Blockchain technology is rapidly becoming mainstream in major industries, from finance to telecommunications, healthcare, automotive, supply chain, and even retail, which is exploring the potential benefits of blockchain technology. However, media and entertainment is typically one of the most undervalued industries, with little thought given to the deployment of distributed sharing technology. Interestingly, however, media and entertainment are ripe for a blockchain revolution and will greatly benefit from the many advantages blockchain offers.
What are the Benefits of Blockchain in Media and Entertainment?
The music business still operates largely based on legacy systems and business models. These business models emerged when songs were distributed on paper rather than released over the Internet. Few players are keeping up with digitization, dominating the streaming market and squeezing artist profits.
The open and decentralized nature of the Ethereum public platform will provide entertainment industry players with benefits such as:
- Decreased IP infringement
- Disintermediated content from industry intermediaries
- Direct monetization of all copywritten assets through smart contracts and p2p micropayments
In 2021, after recovering from the impact of the global pandemic, the media and entertainment market will be worth $2.34 trillion, growing 10.4% from 2020 and will reach 2.93 trillion by the end of 2026
Key Drivers
Streamline royalty payments with blockchain technology Artists and content creators own the publishing rights, manage licenses, manage content distribution, and upload original work. A smart contract is in place with programmed royalties for each content, automatically paying out per-content payments to creators based on usage models.
Blockchain can create new pricing options for paid content Consumption of high-quality digital content has skyrocketed, leaving consumers with no choice when it comes to streaming services. Consumption-based, pay-as-you-go models have great opportunities. Apparently, customers pay well for access to advertising platforms and media channels like Tidal, Amazon Prime, Netflix, and YouTube. With the introduction of blockchain technology, media usage data is recorded in a complex way, enabling a well-organized micropayment pricing model.
Future of Entertainment
The growth of the entertainment industry in recent decades has been remarkable. But the problem with this sector is that a handful of creamy content production companies and music recording tycoons make huge sums of money, with the majority being denied dues. The increasing consumption of digital content and the rise of streaming service platforms have changed many of the scenarios. However, the issue of revenue sharing, and piracy is still a big issue that has not been addressed. Challenges reduce the percentage of earnings an artist is entitled to receive. By embracing blockchain technology and accelerating the development of blockchain solutions, we can provide much-needed solutions to the problems plaguing the field. Massive adoption by a growing number of entertainment and media companies is pushing the industry to move to a better approach that is fair and transparent, while at the same time providing practical solutions that will transform the way media is used and content is consumed. It can also highlight important steps.
Recent developments
Backed by Sony and BMG, Vezt aims to be the number one player in the music rights market, sharing royalties with fans for the recordings and songs they love. Funds raised directly from fans are used to support artists, songwriters, and producers. All song copyrights are encrypted in a smart contract and usage fees are tracked on-chain. A portion of the song rights will be sold to fans of songs that have helped aspiring artists reach such heights of popularity.
Spotify — music-streaming platform recently acquired Mediachain Labs – the blockchain start-up which offers innovation and technical support to connect artists, stakeholders and copyright owners with songs hosted on Spotify’s service.
The $1 Trillion NFT Market
NFT Category Share
NFT Market size is expected to reach USD 60+ Billions by 2031 growing at CAGR 19.2%.
Conclusion
In summary, blockchain technology is of great benefit to the media and entertainment industry as it not only provides security to the content created, but also saves additional costs by eliminating unnecessary intermediaries and other administrative costs. Blockchain technology helps artists control their own revenue stream and work more independently, productively, and hassle-free.
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