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Blockchain: An Ideal Step to Disrupt Traditional Media and Entertainment Industry

Blockchain: An Ideal Step to Disrupt Traditional Media and Entertainment Industry

The Media and Entertainment Industry is full of predatory intermediaries that are abstaining profits from the Artists. 

In the Film industry, production houses, distribution channels, cinema houses, ad agencies, etc. take most of the profit share before reaching the actors. 

Whereas in the Music Industry, singers usually remain close to being pennyless as all the profits are retained to the music labels, streaming services, managers, and such bureaucratic channels. The sore agonies of the artisans usually leave them ruthless. 

The Copyright breach is the biggest concern for artists and piracy attaining heights in this digital media age, the entertainment industry is bearing more losses than profits. 

According to Digital TV Research, online piracy will cost $52 billion by 2022 and the global research on the music industry by the International Federation of the Phonographic Industry (IFPI) reports that music piracy is increasing across the world. 

Top 5 blockchain predictions for 2019

Is there a way out from these downfalls of the shining industry’s stars. Sure, Blockchain is the Superhero! 

Blockchain- the Savior

What is Blockchain and how does it work? 

In laymen’s words, Blockchain can be grasped as a secure database that is distributed in a network where everyone participating in the network can access a copy of the data anytime but no one can edit or forge the data without getting everyone’s approval of it.      

Blockchain uses encryption and preserves digital data, intellectual property, ownership proofs, or public contracts/records across a distributed network in the form of data Blocks with unique IDs. Any transaction occurring in the network is transparent, visible to all network participants, and is recorded to create an uneditable transaction log. 

Here, there is no central authority or governing body to protect the data. Rather, each participant is an equal stakeholder of the recorded data. To alter any information on the ledger, it requires the consent of a majority of the blockchain participants(nodes) and the altered data is registered on the Blockchain in the form of a new Block of data. 

What should you use: Public or private blockchains? It depends on your use case
How can the Blockchain Technology help in the Entertainment Industry

Owing to the robust and transparent characteristics of Blockchain, it has been accepted and adorned by many industries. The Entertainment Industry has tremendous scope for blockchain because of its following benefits: 

1 Consumers pay only for selected Content
The Micropayment business model is feasible by applying Blockchain technology to the Entertainment Industry. Here the user only pays for the media that he actually wants to see or listen. It’s like an ala carte system, unlike the subscription model where the user has to pay for a fixed duration. 
In general scenarios, the Micropayments model is inefficient but with Blockchain, it turns out to be fully automated and cost-efficient. 
Blockchain keeps an acute record of the stored data- i.e copyrighted content and how it is consumed. This brings transparency to the system. 

2 Eliminating the Middleman
Blockchain helps built a direct connection between the content creators and the end-users. Writers, Singers, Musicians, Bloggers, etc can distribute their original work amongst their fans or followers without getting it tangled with the media houses. 
This surely eliminates the traditional distribution channels and benefits the artists by leaving them with a larger share for their creations. 

3 Royalty Distribution
With the growth of the music streaming industry, royalty distribution keeps on becoming complex and opaque. More and more disputes arise over the accuracy and compensation of rates. 
Herein, Smart Contracts run on Blockchain turn out to be an ideal solution. Smart Contracts can be thought of as legal contracts signed between two parties, that are executed on a certain trigger or condition. 
Blockchain can hence make distribution speedy, trustworthy, and precise. This way artists and users can trace the distribution of revenue amongst the stakeholders.

4 Consumer-to-consumer Sales
Blockchain empowers all the content creators to gain a better insight into their content distribution. When a consumer buys or subscribes a song or movie from a blockchain platform and then shares with someone else, the content owner gets to know about the transaction and hence can directly charge the other consumer as well. This creates an additional revenue stream for artists and content creators and they can track their copyrighted content distribution effortlessly. 

Forget about the new internet! Blockchains are the latest ‘Linux alike’ revolution
Use With Caution! / Use at your Own Risk!

Like every story has two aspects, so does Blockchain. In spite of its exceptional benefits, one should not forget that Blockchain is after all a public ledger that is open to all. Anyone on the network can easily view the information stored, hence making it vulnerable. 
When theft can be possible on cryptocurrencies, one cannot abstain other software and electronic systems from such Blockchain attacks.  
However, there is no way forward without a risk attached to it. 

Want to make $10,000 from Libra? Break its blockchain

Author Biography.

Vishal Nakum
Vishal Nakum

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