Music, media and entertainment industry involves various transactions and operations. It includes publishing of content, transferring ownership and rights, paying royalties, etc. Without a proper data management system, it takes huge time to process operations. Also, the chances of mistakes to occur is high too. Entertainment blockchain development services such as hyperledgers, smart contracts and cryptocurrencies help to eliminate or reduce human error. Also, blockchain in music, media and entertainment enhances digital protection of content and assets.
Hiring a blockchain development agency for entertainment will help artists to act as entrepreneurs. It also supports publishers and studios to work together simultaneously via smart contracts. Blockchain has the necessary potential capabilities to disrupt the music, media and entertainment industry today like how internet disrupted every industry decades’ back.
Waves of Blockchain in Music, Media and Entertainment Industry
Traditionally, storing creative content and unique music and media assets with encryption or Intellectual Property Rights (IPR) was hard. This is because of multiple middlemen interference and paperwork documentation. This cause delay in all operations.
Blockchain in music, media and entertainment provides decentralized Distributed Ledger Technology (DLT). DLT disrupts traditional banking services by allowing direct transaction between peers, which also impacts music, media and entertainment industry.
Allows micropayments as a payment option
Fans might not be willing to pay a complete subscription package as they might not be interested in every single music, video and art content provided by an application or digital streaming website or TV operator, etc. In such cases, pay per use sounds feasible and paying for usage in micropayments is more convenient.
Blockchain development technology allows payment of smaller fee with the help of cryptocurrencies and the same cryptocurrency can also be used to track copyrights of a content after payment has been made. The benefit here is that micropayments are automated and this allow fans to use entertainment services cost-effectively.
Eliminates the need for content aggregation and aggregators
Traditionally, due to centralization, every music artist, media artists and third-party service providers such as publishers, labelers, studio managers, etc. found it harder to reach one another. Before the artist’s work reach fans, it had to go through a long of chain of multiple people for various verification and authorization.
Blockchain surpasses this traditional type of system and allows artists to directly connect with their fans and subscribers to sell or distribute their work and content easily and quickly.
Enhances the distribution of royalties
As mentioned above due to multiple intervention, the confusion of who paid what? Who has to receive payment? Who has to receive how much? etc. All such details were traditionally stored in paperwork and it made the work of a publisher much harder in paying royalties to the appropriate personnel.
With smart contracts operating using blockchain, publishers can now easily record who has paid what and how much share does each party get. Publishers can now easily distribute royalties with accuracy, opacity and at the right-time to all stakeholders.
Eliminates illegal P2P digital sharing of music and media content or files
Since blockchain allows artists to directly connect with each other and consumers to connect with each other, the chances of content getting leaked digitally is pretty much low. Each user will have an encryption of their own and the content by itself will have its own encryption. Without appropriate decryption key, nobody can access the file and no one can transfer the file too
Appropriate key holders authorize file sharing and this protects all songs and media content against digital piracy.
Helps funding of media and entertainment startups
Blockchain provides Initial Coin Offerings (ICOs) which have become popular today just like blockchain. ICOs are worldwide as a means of crowdfunding and entertainment industry artists can use this as a source to receive funds from their fan base directly. This replaces the traditional system of acquiring funds from venture capitalists or any other regulatory source.
Also, with ICOs getting funds worldwide is easier as there is border or regulatory restriction or limitation. ICOs also help to eliminate scams such as fraudulent investment by verifying all source of origin.
Re-invents existing business model with more innovation and efficiency
Just like how Netflix disrupted the industry of DVD, like that blockchain is disrupting the entertainment industry now. Blockchain can provide boost to startups and businesses in music, media and entertainment industry. It can help the decision makers to innovate operations in such a way that the business model allows operations to get completed faster and without wasting valuable resources.
For example, blockchain allows re-inventing of a business model for a digital streaming company. Using blockchain, they can allow users to stream their own content or pay to access a music artist’s content through cryptocurrency and track copyrights at the same time.
Tokenizes payment processes to generate better Return on Investment (ROI)
Blockchain support the media, music and entertainment industry with building appropriate reward programs. Blockchain makes it possible to issue tokens through ICOs. This platform also helps in sharing of content, re-distribution of files and transferring ownership between peers. Token based exchanges is cost-effective too.
Mitigates digital piracy issues with real-time tracking of assets and content
Blockchain integrated with Artificial Intelligence (AI) helps to achieve cryptographic consensus in order to transfer files and validate transactions in real-time. However, developing such a system involves a lot of cost investment. Even, it may be complex. But, if achieved, it helps to validate every request for access from a user against their credential and authorization. This process is enhanced even more with proof of authentication that is possible through smart contracts.
Blockchain is still in its baby stages but has real-time opportunistic and disrupting applications. Since it is a new technology, it has too many unforeseen challenges and issues equivalent to opportunities it may bring. However, entertainment enterprises that are willing to reap technological benefits are moving ahead their business with blockchain. Blockchain is not a roadblock, it’s a road roller that lays down the path ahead for music, media and entertainment industry with enhanced digital services. Especially, given the fact that the world is moving towards a digital market.
Let us know what do you think are the other waves that will be caused by blockchain in music, media and entertainment industry.