The majority of the music industry’s operations still rely on antiquated technology and business plans from the days when music was only made available offline and not online. Artists are squeezed out of profits by a small group of major companies in the streaming market who have not kept up with digitization.
The public Ethereum platform’s decentralized and open nature will enable performers in the entertainment sector to benefit from the following:
- Reduced infringement of intellectual property
- Content that has been disintermediated from industry middlemen
How might Blockchain reduce intellectual property violations in Entertainment and Media?
It is estimated that the US film and TV business loses $71 billion a year due to digital piracy, fraudulent copies, infringement on studio intellectual property (IP), and duplication of digital goods. Businesses Using an immutable, time-stamped ledger, Ethereum enables authors and artists to manage and preserve intellectual property rights while digitizing the metadata of their original works. A blockchain’s append-only structure facilitates the legal enforcement of artists’ rights in the event of infringement.
How can Blockchain help Media and Entertainment become less Intermediarial?
There are several middlemen in the media and advertising sectors. According to CitiGroup, while US music industry spending is at an all-time high of $43 billion annually, artists only receive $5 billion, or around 12 percent, of the total revenue. In addition to recorded music corporations, music publishers, music managers, and distributors, on-demand streaming services like Soundcloud, Spotify, Apple Music, and YouTube also act as intermediates in the music industry.
In what ways can blockchain facilitate micropayments for Entertainment and Media?
A blockchain platform records each time a piece of content is used after a content producer registers their property on it. Metered billing is one example of the real-time, adaptable, and completely transparent consumption-based pricing systems made possible by this tracking. It is possible to implement automatic micropayments between the creator and the customer using a smart contract.
Which media and Entertainment industries are using Blockchain Technology?
The media and advertising sectors have multiple blockchain uses. ConsenSys has highlighted the following as some of the most important application cases:
- Peer-to-peer content distribution and sales
- Simplified royalties
- Billing models based on usage
In what ways will peer-to-peer sales and content distribution in media and entertainment be made possible by blockchain technology?
Artists may automate a lot of the business administration work related to contracts, payments, and licensing by using Ethereum. Artists are able to sell their work directly to other artists once the contractually based process, which is typically fraught with middlemen, is automated and completed at a significantly reduced cost. Digital content markets that are blockchain-based let producers and consumers communicate directly without the need for expensive middlemen.
How can blockchain technology simplify the payment of royalties?
Artists can self-publish, manage distribution, upload unique works, and choose which licenses to grant. All on a blockchain-based platform. For each piece of material, royalty payments can be automatically deposited into a smart contract and disbursed to the creator upon usage.
How will new choices for paid content pricing be made possible by blockchain Technology?
Currently, users must pay content aggregators in order to access media and advertisements on sites like Netflix, YouTube, Hulu, Tidal, Amazon Prime, and Hulu. Customers are overloaded with streaming options, which creates a chance for consumption-based pay-per-use models. Blockchain technology allows for effective micropayment pricing structures and the logging of detailed media usage data.