Only a handful of business sectors are not either excited or concerned about the adoption of blockchain technology’s concepts like use cases, proof-of-concept, and full-fledged companies, developing at a growing rate powered by blockchain development solutions. However, it can disrupt current business models, as well as create new ones, particularly in the digital media and entertainment industry.
Challenges across the Media and Entertainment Industry
Pervasive availability and improperly structured commoditization of content have negatively affected the industry. Not to mention, the widespread intellectual property (IP) piracy is undermining its potential. Also, media users have increasingly become accustomed to free access to a wide range of content, creating more challenges. Most of them do not want to pay subscription fees behind paywalls for “premium” content. Besides, digitization has affected all media segments. Anyone can quickly replicate and transmit content, that too with no reduced quality.
Existing digital rights management systems have failed to reduce copyright infringements. New media consumption models like all-you-can-consumer video subscriptions and micropayment systems have come into existence to address issues. However, they have only recovered the resulting revenue “leakage” to a limited extent.
Addressing Challenges with Blockchain
Strengthen paid content delivery by facilitating customized micro-payment based pricing models
Create new monetization opportunities for fragmented content types, including blogs, photos, videos, news, etc.
Make media usage specifically related to the respective content objects. It allocates advertising budgets more precise and targeted.
Infringements of copyright and piracy might become obsolete. However, we also need to consider that these technologies and systems are still in the early development stages. Regulations are yet a few years off for industry-wide acceptance.
Understanding Blockchain Technology
The technology initially conceived to act as the underlying technology for Bitcoin now provides various additional areas of business applications for use. Essentially, it enables transaction execution from a sender to a receiver in a network without a central authority, thereby increasing speed and reducing transaction costs.
Its five main characteristics are crucial to understanding the mechanism of its underlying processes.
A blockchain serves as a digital distributed ledger. It records transactions chronologically and immutably, in almost real-time.
For the addition of a transaction to the ledger, the agreement of the network participants (called nodes) is a prerequisite. It provides a continuous control mechanism concerning manipulation, errors, and data quality.