Blockchain has been making headlines in recent years, with many believing in its potential to change the world. While it is mainly known for enabling traders to buy and sell cryptocurrencies, such as Ethereum, the technology has become mainstream in other industries as well, including healthcare, supply chain, and automotive. These industries face major challenges, but due to its features, blockchain can bring effective solutions; for instance, in the supply chain, this technology improves the traceability of shipments, reducing delays, corruption and fraud.
Blockchain is also applied in the entertainment industry, changing things for creators and consumers, from how content is delivered and enjoyed to how people pay for it. It is expected that by 2030, the value of blockchain in entertainment industry could reach $11.8 billion, showing how promising this technology is.
How is blockchain changing entertainment?
The entertainment industry has been flourishing thanks to the digital revolution. Producers can access a global audience and engage with fans, while consumers can enjoy content whenever and wherever they want. But this is only the bright side. On a less positive note, the entertainment industry also faces challenges, such as piracy, which is difficult to control and leads to losses of billions of dollars. And even if content creators and artists don’t have to deal with pirated content, they face unequal profit distribution. Luckily, blockchain has come to the rescue, creating new opportunities in the entertainment industry.
First, blockchain allows entertainment companies and individuals to ensure security against shady distribution. This is done by encrypting products into digital data and allowing only involved parties to share it, including agencies, tech providers, advertisers, and customers who have already completed the payment. With blockchain, creators can also identify attempts to breach and steal assets. This is possible due to smart contracts that ensure transactions meet all the conditions previously defined, helping prevent breaches. Moreover, the history of the transaction is recorded on the blockchain and visible to all participants.
Besides boosting security and trust in the entertainment industry, blockchain offers creators new opportunities to generate revenue streams. At the same time, it improves customers’ experience by ensuring the information is delivered on time to targeted audiences, resulting in better revenue in the long run.
Applications of blockchain in the entertainment industry
Blockchain has incredible characteristics, such as transparency and immutability, driving innovation in different sectors. Let’s discuss how blockchain technology is applied in entertainment.
It supports micropayments
Centralized entertainment is a lose-lose situation because artists aren’t the only ones to lose a significant part of their profits – end-users also have to pay extra fees for the mediator. On the other hand, blockchain changes things by allowing users to make small transactions online (under one dollar). This is better for those who want to access short-form content without paying massive amounts.
Since the blockchain works without an intermediary, distribution channels are no longer needed. Therefore, the creators can fully control and manage different types of media, removing the need for Netflix, publishing houses or record labels. Blockchain can change the financial paradigm that has long been used in entertainment: just think of how easily payment can flow to the creator thanks to this revolutionary technology.
It streamlines royalty payments
There is unfair profit distribution in the entertainment industry, especially in the music sector, as many intermediaries are involved in streaming and publishing, so artists only get a small revenue from their work (12%!). This can be very discouraging for those creating unique pieces – they deserve better.
However, blockchain changes the whole story by cutting out the intervention of mediators. It ensures proper royalty payments, as those who want to utilize entertainment services must pay for them in advance. As such, creators receive payment whenever someone plays their tune.
It improves relationships with customers
Blockchain technology brings another advantage to the entertainment industry: it enables large corporations to build stronger relationships with customers and consumers. This is because creators can connect with consumers directly, as an intermediary is no longer involved. Big media companies can also offer more varied pricing models based on every consumer’s purchase.
Blockchain simplifies things in areas like provenance, payment and distribution while cutting costs. Moreover, it allows companies to focus more on creating quality content for their audiences.
What is the future of entertainment?
The entertainment industry has grown considerably over the past decades, but it’s worth noting that only top-tier artists make significant sums of money, while others don’t even get half of that amount. Luckily, the Internet is now changing how things work in the industry, enabling more creators to reach a wider audience. But there are still problems regarding revenue, as piracy and distribution services are dramatically reducing the amount of cash artists receive. So, it’s crucial to address the elephant in the room so that artists can be paid fairly. Blockchain can help do that, ensuring everything works in both parties’ favor. For media consumers, this means having access to different kinds of content, while for content creators, it translates into a streamlined distribution system and payment.
Blockchain technology is very promising, and its impact is seen in different industries, including media and entertainment. Unfortunately, this industry is mired in various hurdles, making it challenging to prosper. For instance, musicians deal with the infringement of intellectual property rights, as well as a lack of transparency and clarity regarding royalty agreements. Blockchain holds the major scope to tackle these problems, reshaping the entire industry. It enhances the media supply chain, ensures transparency, helps track fraudulent activities, and monitors ads performance and publishing rights. The introduction of blockchain in the entertainment industry translates into enhanced trust, better content quality, improvement in data and a reduction in dispute incidences.
It will be interesting to see what comes next and how far blockchain’s potential can go. Until now, the technology has proven to be incredibly powerful, and it’s not difficult to understand why people have called it “revolutionary”. Blockchain isn’t only changing perceptions about money but also the way businesses operate. It is a catalyst for innovation and the key to a better social and economic status.