How does blockchain relate to the entertainment industry? Blockchain is similar to the Internet. It can be tied to content, track and prohibit usage, also crypto drop its price which is not expected, and alter royalty distribution for more efficient transactions. Recently, AMC Entertainment began accepting cryptocurrency for ticket purchases and concessions. It is also similar to how the Internet was born: it is currently in a period of heavy transition. For many, blockchain is only a secondary solution.
The decentralization of the system for the entertainment industry is underway, and the implementation of blockchain-powered processes will offer benefits across the board. Among them are content aggregation and distribution elimination, more reliable royalties, and support for consumer-to-consumer sales.
Blockchain technology can help make all of these possible, but it is not without limitations. Implementing blockchain technology within the entertainment industry will allow artists to leverage tools to improve their understanding of how their content is distributed.
Blockchain technology and the entertainment industry
The digital content distribution through distributed ledger solutions will make the process transparent for the creator. It means that the final product will be more affordable for consumers. It will also help to protect the artist-fan relationship. The cost of a product is also likely to be less, thanks to fewer middlemen. But the benefits of blockchain technology will be most clear when implemented in the entertainment industry. But there are some risks and potential issues associated with this new technology, and most have yet to test.
As the digital revolution drives more consumers to digital content, disruptive technologies have also pushed traditional media outlets to change their business models. New technologies have also opened up new channels for content consumption, allowing innovators to jump on the bandwagon and take on traditional media outlets. According to a recent study, the worldwide entertainment and media industry will grow. The Annual growth rate of 4.4% over the next five years, reaching $2.4 trillion by 2022.
Movie theaters, for example, have been transformed by the advent of streaming. Blockbusters are no longer the sole provider of recorded audiovisual entertainment. Netflix has disrupted the industry in more ways than one. A single movie stream can replace the entire entertainment ecosystem, resulting in a huge shift in customer behavior. Disruption in the entertainment industry occurs when an innovation threatens an industry’s very existence.
Security
The global entertainment industry faces several challenges and can benefit from blockchain. Online pirates can violate intellectual property rights, and peer-to-peer programs make it difficult for content creators to trace unauthorized distribution. Content creators can secure payments instantly and receive royalty payments almost immediately by utilizing blockchain technology. And blockchain infrastructure uses decentralized data. It means that transactions are secure and unhackable. You can use blockchain to address both of these issues.
Currently, the entertainment industry relies on legacy business models and systems. Songs were traditionally distributed in hard copies and not released on the Internet. While some of these players have caught up with digitization, only a few have a monopoly on the streaming market. It has squeezed profits for artists. Blockchain can solve this problem by eliminating the middleman. A blockchain system would also reduce IP infringement and improve the security of media deals.
Costs
One of the most attractive features of Ethereum’s blockchain is its smart contracts. With this new technology, parties can execute agreements quickly and securely. Entertainment executives are already seeing the value of smart contracts for several purposes. One such application is the ability for creative people to get paid instantly and accurately. Many artists cheat out of their royalties. Blockchain’s smart contracts could alleviate such problems.
Existing systems struggle with complex bundles. In addition, they require multiple intermediaries to manage digital rights. By making payments more straightforward, blockchain will allow media companies to be one step ahead of their competitors. Further, this technology eliminates the need for intermediaries and allows for more efficient distribution.
Final Words
Other blockchain applications in the entertainment industry include curbing ad fraud and copyright infringement. It can also improve media content delivery, consumption, and payment.
