Blockchain Technology Solves Some of the Biggest Challenges Facing Media and Entertainment Companies
Blockchain technology has often been compared with Internet for its disruptive potential. Although blockchain was originally used for financial transactions, it quickly spread to almost every other industry, including the media and entertainment industries.
Over the past few years, we’ve seen media and entertainment companies start leveraging blockchain technology to change the way they develop and distribute content. Disney was one of the first players to develop a private network blockchain platform since 2014 to make transactions more reliable and transparent. More recently, media like The New York Times
We are just beginning to unlock the full potential of blockchain technology and there are several persistent challenges that media and entertainment companies are facing that blockchain can help solve.
Protection of intellectual property
Intellectual property issues and violations are pervasive in the media and entertainment industries. Musicians, entertainers and other performers have long struggled to retain ownership of their work, which means they are often not compensated fairly. This is especially true for musicians and many artists have pleaded for higher royalty payments from streaming platforms.
Artists like Taylor Swift have also faced tough battles to retain control and ownership of their intellectual property.
To research by professors from Middlesex University found that intellectual property issues in the music industry are fueled by a lack of transparency. Often, artists do not fully understand the terms of contracts and copyrights, which limits their ability to ensure that they are fairly compensated. The authors explain how: “The specific details of many streaming agreements are currently hidden behind non-disclosure agreements, so artists and songwriters may not know the terms under which copyrights are used. .” The result is that the majority of funds are often distributed to intermediaries and not to artists.
Enter the blockchain. Using blockchain technology, musicians (and other creators) can log their IP address and then link lyrics, videos, and even a biography to the blockchain, embedding it as metadata in digital recordings. All of this would be transparent and accessible to the public – a stark contrast to today’s reality. Creators can also use blockchain-enabled “smart contracts” to stipulate who is able to upload and interact with their content and, importantly, how they, as creators, will be compensated. When a consumer downloads a song, album, or other work, the smart contract would be triggered and, in turn, automatically charge the buyer and compensate the creator appropriately.
Smart contracts also allow artists to track every stream on the web and not miss out on potential royalties. That’s a massive deal considering the top 20 music streaming platforms are estimated to have collected $424 million in so-called “unmatched royalties” and have no idea who to pay.
Fight against misinformation
Trust in the media has hit historic lows. It was fueled by fake news, which has shaken public confidence in the media and left many consumers uninformed. The fact that there are more than 3,000 news outlets in the United States alone (along with countless independent creators) exacerbates the potential for fake news and makes it increasingly difficult for consumers to discern which sources they can trust. trust. Given this state of affairs, it is not surprising that the biggest media giants in the world, such as New York Timesare eyeing the blockchain to fight misinformation.
Because blockchain technology relies on a decentralized, immutable ledger to record information, it is perpetually verified. This means that media and entertainment companies can tie all the content they have published, including articles, quotes and photos to the blockchain and be sure that it will not be manipulated. Harvard Business Review has reported that the New York Times began seeking to combat misinformation a few years ago through its Provenance Project News. A key part of this initiative was to create a common set of standards for the metadata that news publishers capture for the photos they publish in order to clearly detail provenance information and ensure that the verification work carried out by journalists, photojournalists and their editors is not lost once a photo is published. shared on social media.
DAOs or Decentralized Autonomous Organizations are member-owned and managed organizations without centralized leadership. This organizational structure has become popular in web3 and is also being leveraged to reinvent participatory citizen journalism. Consider, for example, TruthDAO, a professional news organization built with community support and interaction through a decentralized DAO structure. TruthDAO aims to support nonpartisan journalism by engaging its members in the reporting process. Members can contribute story ideas, provide perspectives and participate in debates.
Open new avenues of monetization
The massive scale of many media and entertainment companies means that individual artists and creators have less control and ownership over their content, along with limited opportunities for monetization. When individual artists distribute their music through large-scale media platforms, they are often unfairly compensated. For example, when musicians distribute their music through Spotify or Apple Music, approximately 70% revenue is distributed to music rights holders, who are often not the individual creators.
NFTs – blockchain-based tokens that effectively assign ownership to particular digital assets such as artwork or even blog posts – are changing the game of monetization for individual creators. NFTs give individual artists and creators more autonomy over how they monetize their work.
Some of the biggest social media behemoths have embraced NFTs, no doubt realizing that creators demand Web3 business models. Mark Zuckerberg recently announcement that NFTs are coming to Instagram. And YouTube too recently announcement that it integrates NFTs into its authoring tools so that creators can earn money directly from fans who buy the rights to their videos. Thinking about the potential for new avenues of monetization, the YouTube product manager has Explain“We believe that new technologies like blockchain and NFTs can allow creators to build deeper relationships with their fans…Together they will be able to collaborate on new projects and earn money in ways that was not possible before.”
Ultimately, blockchain has the potential to profoundly change monetization pathways for creators and foster a more level playing field with real-time tipping and recognition. The artist Cryptograffiti for example, recently launched a plugin for DJs. If live viewers like a track, they can send Bitcoins
A bright future for blockchain in media and entertainment
William Mougayar, best-selling author of The commercial blockchain, said, “Blockchain cannot be described simply as a revolution. It is a tsunami-like phenomenon, moving slowly and gradually enveloping everything in its path by the force of its progress. The tsunami-like power of blockchain is proving particularly potent in the media and entertainment industries. These industries have been crippled over the past few decades by pervasive issues such as intellectual property infringement, misinformation, and unfair payment structures. With the global blockchain market valued to reach $1.4 trillion by 2030, the opportunity looms for blockchain to be a transformative tour de force for media and entertainment.