Today’s global entertainment and media industry revenue is worth $2.1 trillion. This multitrillion-dollar industry is often exposed to multiple risks related to content distribution, rights management, and royalty payments to artists. Billions of dollars in lost revenue are being lost due to illegal streaming and downloading of content. According to another report, the industry is expected to lose about $51.6 billion to piracy in 2022.
Piracy of digital music is often very easy to create and most attempts to prevent piracy have failed. This affects royalty payments made to creators for the right to use or publish their content. Also, payments are not always guaranteed and are based on traditional airtime figures. There is no effective way to control content distribution.
It was, until now.
Take back control, creators!
With the blockchain revolution, the industry’s perpetual problems will have the right solutions. The use of blockchain technology is very effective in solving problems such as copy protection and loyalty programs. This technology connects consumers, artists, and all other stakeholders in the industry, providing complete transparency into the distribution process.
Blockchain provides a network where all digital music is crypto-encrypted and accessible only to paying customers. This payment mechanism for accessing content is controlled by smart contracts, eliminating the need for centralized authority. Payments are made automatically based on the logic embedded in these smart contracts and the permissions stipulated for the number of downloads. All transactions within the blockchain network are recorded and immutable, making the process completely transparent and accessible to all stakeholders. This completely prevents illegal copying of digital music files and protects creators’ copyrights.
Blockchain – connecting content and creators
Blockchain technology’s cryptographic capabilities allow creators to be tied to their content and avoid plagiarism. For example, digital music files on blockchain networks contain owner information and time stamps. Both of these are immutable and traceable. The legal owners of content are cryptographically linked. This ownership may not be transferred to another user without the original owner’s permission. Copyright transfers can be easily managed and tracked on the blockchain as all transactions are recorded and tamper-proof. Smart contracts can control all distributions and payments to parties.
Blockchain technology gives intellectual property (IP) owners tools to better monitor and protect their work. Preventing plagiarism of previously copyrighted content is just one of the many applications that blockchain technology offers. Blockchain for business has the potential to reduce a company’s reliance on multiple security tools and create a higher level of trust for every transaction, allowing leaders to focus on better marketing strategies. will be This trust factor combined with the ease of use has increased the demand for blockchain among businesses.
Blockchain for the media and entertainment industry
The media industry is at the forefront of the digital revolution. By adopting multiple emerging technologies, the industry is enriching the user experience through data-driven insights, building strong brand value and an engaging social media presence.
The media industry often faces the challenge of controlling ownership and distribution. Web3 applications allow creators to effectively monetize their art. Creators can also set up NFT marketplaces and apply smart her contracts to profit from future sales and reward loyal fans who invested early on for their success.
Here are some ways the media industry can mitigate existing challenges.
Asset management security
The media industry has failed to effectively control the digital sharing of content. Blockchain applications allow creators to verify their identities, limit sharing, and retain ownership of their digital assets.
new revenue stream
Blockchain allows creators to sell their exclusive assets as NFTs and retain a portion of the profits from these assets for further trading in the future. This accountability also affects streaming, with a pay-as-you-go model empowering consumers and rewarding artists directly.
fan connection
If an artist wants to sell their share of their career at a launch party, fans can join them on the journey and reward them with loyalty as their career grows. This is similar to fan clubs where multiple parties are involved to secure revenue within the creator’s community.
Blockchain on TV
Blockchain can scrutinize digital assets and eliminate fake videos before they make the news. Consumers can choose the channels they want and pay only for the content they want to consume. NFTs can create exclusivity in a world of streaming where everything is always available.
Blockchain in film distribution
Blockchain can address challenges related to identity, ownership and copyright. For example, an actor wants to be compensated according to the success of a film, a studio wants to accurately price advertisements and products for his placement, or a creator wants to control access and ownership of their work.
blockchain in music
Napster’s legacy lives on today in peer-to-peer sharing of music files, and the entire industry had to adapt. However, challenges remain with payments, stream tracking, and payment distribution. Blockchain applications such as smart contracts, NFTs, and micropayments could be the right solution for what this industry needs.
Unique features of blockchain
Blockchain is a promising technology backed by three core strengths: transparency, immutability and impeccable security. Blockchain is known for its popularity in the banking sector, but it is a technology of the future that will disrupt all industries with its distinctive applications. Here are some examples of how the unique capabilities of blockchain can be applied to the media industry.
- Immutability: Increases resistance to censorship.
- Security: Orderly data structures that provide a high degree of auditability and reliability.
- Transparency: Visibility into ledger information across all users.
- Tolerance: Prevent data tampering and eliminate information asymmetry.
- Vulnerability: Blockchains are also decentralized. This means there is no single point of failure or attack vector for hackers or other malicious actors.
Blockchain Benefits in Media and Entertainment
The music business still operates largely based on legacy systems and outdated business models. These business models were developed at a time when music was primarily distributed offline and not released on the Internet. Only a handful of competitors have been able to keep up with digitization and now dominate the streaming business, putting pressure on artists’ income.
The open and decentralized nature of the public Ethereum platform will provide entertainment industry stakeholders with benefits such as:
- Decrease in intellectual property infringement
- Content not mediated by industry intermediaries
- Direct monetization of all copywriting assets with smart contracts and p2p micropayments
Digital piracy, piracy, compromised studio IP, and duplication of digital items cost the US film and television industry an estimated $71 billion annually. Enterprise Ethereum enables artists and creators to digitize the metadata of their own content. It also manages and stores his IP rights in a time-stamped, immutable ledger. A blockchain with an append-only structure makes it easier for creators to legally enforce their rights in the event of infringement.
Disclaimer
The above views are the author’s own.
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