Blockchain Use Cases in Media and Entertainment Industry

Blockchain is a shared, unchangeable, or immutable ledger that records transactions or tracks assets within a business network. A blockchain stores data in blocks. They are linked together in a chain, which cannot be deleted or modified without consensus from the web. The result is an unalterable or immutable ledger that can track orders, payments, accounts & other transactions.

Blockchain in Media & Entertainment Industry

Many different industries are exploring blockchain technology for its benefits. However, the M&E sector stands to gain using the core attributes of a blockchain-shared ledger approach that can provide transparency, efficiency, speed, security & control access across the supply chain along the entire transaction chain.

The blockchain can transform how media content is delivered, consumed & paid for. The legacy systems are designed to manage complex, personalized content and service bundles and it can be not easy to manage digital rights, royalty collections and transactions among many intermediaries.

The shared ledger approach of blockchain can help improve the media supply chain and reduce copyright infringements by adding transparency, security & control.

Some big media players have already started the blockchain journey. Comcast announced its Blockchain Insights Platform with NBC Universal, Disney, Channel 4 and others in 2018 to match the audience datasets for better planning, targeting, executing and measuring advertising. Spotify acquired Mediachain Labs to develop better technology for connecting artists and other rights holders for tracks hosted on Spotify's service.

Use Cases of Blockchain in the M&E Industry

• Pricing models for paid content: The trend of consumers demanding individual content experience from preferred sources versus the established content portfolio of TV & Radio has increased. The success of music and video streaming services has intensified the trend. The distribution and monetization of bite-sized content have become more prevalent and accessible due to blockchain technology. Blockchain makes micropayments cost-efficient. Cryptocurrencies like Bitcoin make it possible to complete transactions for micro amounts of a currency, thus enabling small-price content purchases. Tracking copyright and allocating media to copyright holders are more efficient and accurate. Blockchains help copyright owners track their material usage and ensure they receive a fair share of proceeds.
• Bypassing aggregators: While paid content is gaining traction, online media's monetization depends on advertising. The digital advertising ecosystem is complex and can involve many intermediaries between the content creator and potential advertiser. Blockchain makes it possible to ensure that everyone, from leading media houses to individual bloggers, can generate revenue. Blockchains permit content usage tracking and enable direct allocation of advertising budgets. Once the digital copies of the media are tied up in a blockchain, the artist can sell them directly to the end consumer without using any intermediaries like record labels. Blockchains can enable artists to sell their content anywhere since blockchains can easily track usage and deduction of associated payments. Ultimately, blockchains permit a one-to-one relationship between the artist and the end user. The Marketing performance and impact are more easily measurable while the existing complex media and advertising ecosystem become simple and transparent.
• Distribution of royalty payments: Blockchain technology can help make the distribution of royalties more transparent and efficient, using a single media directory with the original digital media file(s) associated with the people involved in its creation. Instructions can be stored as smart contracts, specifying how the creators will be compensated and the division of sale proceeds. Blockchain technology can enable real time allocation and distribution of royalty payments based on smart contracts. No costly tracking systems are required as every usage or consumption is tracked.
• Secure and transparent consumer-to-consumer sale: Using blockchain, content owners can leverage, control and monetize the copyrighted assets recorded in the blockchain. It also helps ensure that illegal file sharing and copyright infringements will not be possible as blockchain details are transparent. For consumers, the blockchain records the usage of the content and enables consumption-based pricing mechanisms. Consumers pay for the actual use and do not have to pay a monthly fee up-front. Since the transactions are low-cost, consumption-based business models also apply to micropayments.

In conclusion

M&E companies can use blockchain more effectively within their business networks since it supports consensus, governance and immutability. It helps enhance data quality, increase trust and even reduce or eliminate disputes. Such reasons are prompting companies from this industry to turn to blockchain technology solutions. For M&E, companies wanting to implement custom blockchain solutions can connect with a media and entertainment software development company to ensure transparency, drive efficiencies and generate cost savings.