Is Blockchain Technology All Set to Spark a Revolution in Media and Entertainment?
The blockchain technology marked its inception in FinTech, and its success has paved the way for this technology to find its way to several other industries. One of the most distinctive features of blockchain is that it enables a digital marketplace that is both decentralized yet tamper-resistant. Transactions are recorded in chronological order in a […]
The blockchain technology marked its inception in FinTech, and its success has paved the way for this technology to find its way to several other industries. One of the most distinctive features of blockchain is that it enables a digital marketplace that is both decentralized yet tamper-resistant. Transactions are recorded in chronological order in a distributed ledger that is transparent to its participants, but encrypted so that nobody can undertake fraudulent practices and make unfair changes to the ledger. However, blockchain is not just all about digital currencies. In recent times, we have seen blockchain technology proving to be highly useful in the healthcare industry. The players in the media and entertainment industry are also trying to incorporate this technology into their processes. But what applications can blockchain have in media and entertainment you wonder?
Crowdfunding new creative ventures
Just like how a company raises capital through IPOs’ (Initial Public Offering), startups and creative production companies can crowdsource capital using cryptocurrencies known as ICO (Initial Coin Offering). The use of blockchain technology and cryptocurrencies for crowdsourcing is going to surge in 2018, especially in media and entertainment, but will be largely dependent on how the Securities and Exchange Commission (SEC) applies and imposes securities laws to ICOs. How can investors benefit from crowdsourcing using cryptocurrencies? A blockchain-based crowdfunding platform securely records funding transactions. These transactions are transparent to all investors, enabling them to know where they stand in the pecking order in real-time.
Fair payment for creative work
In the digital era, it is difficult for companies in media and entertainment to get a fair payment for their media due to the ease at which copies of the work can be made and distributed. This happens especially in the case of music streaming platforms. With the help of a transparent blockchain technology based ledger, smart contracts can automate royalty payments based on a song’s consumption, including streaming. It would ensure that the right holder of music assets get the compensation that they deserve.
Platform for digital advertising
Though digital advertising platforms offer immense opportunities to target a wider audience and personalize the ads, a significant drawback is that the majority of the ad dollars could go to intermediaries. Recently, NYIAX deployed a blockchain technology-based ad exchange platform in partnership with Nasdaq. This platform allows publishers and advertisers to efficiently trade advertising contracts. NYIAX has a long-term vision to create a more financially rigorous model leveraging fin-tech best practices with advertising and media.
Avoiding piracy in distribution
One of the major setbacks of digital distribution in media and entertainment is the exposure to piracy. Several industry experts believe that with the help of blockchain technology, they can better compete with media pirates. This can be achieved by matching the legal user and the legally-purchased content so that the payment mechanism is transparent and it is easier to decipher any fraud or piracy of the content.