Key Benefits of Blockchain in the Online Media and Entertainment Industry

A blockchain is a distributed ledger technology (DLT) that makes use of a special kind of data structure to record and transmit digital transactions. Hence, it is reliable, immutable, and transparent. Among the many sectors that have already begun to embrace distributed ledger technology, the online entertainment industry is one, as it benefits greatly from the increased security and transparency that blockchain provides.

Due to the relationship-based nature of the media and entertainment sector, producers often find themselves at a disadvantage due to the margins and hidden profits enjoyed by intermediaries. All things considered, blockchain technology has the ability to make the sector more transparent and decentralized, cut expenses significantly, and do away with fraud.

The use of blockchain isn’t pigeon-holed as its value cuts across several sectors from the tech space to the entertainment and media sectors, healthcare, education, and even online betting.

Commenting on the prospects of blockchain in online entertainment, including the betting sector, expert tipster, Kate Richardson believes that the adoption of blockchain is changing the narratives and creating new windows of opportunities. For instance, sports betting with Bitcoin, a prospect that seemed almost impossible a few years ago is now a common occurrence at almost all the online sportsbooks you can find.

What are the Use Cases of Blockchain Technology in the Entertainment Industry?

Find out the top use cases of blockchain technology in the entertainment industry, including enhanced content distribution, micropayments, intellectual property protection, and fan engagement through NFTs and decentralized platforms.

Micropayments

Distributed ledger technology eliminates the need for middlemen. What this implies is that the content’s control is with the owner. Due to the elimination of the middleman payment network, it enables micropayments. Instead of paying for something that isn’t necessary, you can use blockchain to pay for only the things you want.

In the words of the United States Secretary of the Treasury, Janet Yellen, “Blockchain is a very important new technology that could result in faster, safer and cheaper payments.” Consider this scenario: the customer wants to buy an album only to listen to one song, but he can just pay for the song he loves. Another option is for readers to pay for individual news articles instead of the whole newspaper.

The blockchain keeps track of every use of a piece of content after the creator has registered it on the network. Metered invoicing and other consumption-based pricing methods are made possible by this tracking, which allows for real-time flexibility and complete authenticity.

Peer-to-Peer-Transactions

When it comes to licensing, contracts, and payments, artists can automate a lot of the administrative labor using blockchain. Creators will be able to market their products directly available to peers after the labor-intensive contractual-based processes are automated and done at a far lower cost.

Without the need for expensive middlemen, authors and consumers may engage in direct commerce on blockchain-based digital content markets. To put things in perspective, here are the words of Ethereum’s co-founder, Vitalik Buterin: “…Instead of putting the taxi driver out of a job, blockchain puts Uber out of a job and lets the taxi drivers work with the customer directly.”

Blockchain technology facilitates local, one-on-one transactions between creators and consumers, which in turn reduces piracy by elevating consumers to the status of legal merchants and promotes fair distribution of media.

Marketplaces built on this technology are facilitating direct transactions between content producers and consumers, doing away with the need for expensive middlemen in the digital content industry. Streaming services and content aggregators are only two examples of the many intermediaries that continue to make the entertainment industry more complicated and less lucrative for everyone.

Immutable Ad Metrics

Agencies, companies, marketers, and clients can now legitimately measure and attribute advertising data thanks to the web3 technology in the media and advertising business. This allows them to clearly understand where their money is being spent and where it is getting genuine clicks.

 

Indeed, the data is guaranteed to be immune to manipulation and fraud when utilizing blockchain as an open ledger. This applies to everything from lead generation to clicks and impressions. Ads may be more targeted and their return on investment (ROI) can be more precisely calculated with the use of the technology, which is assisting all parties involved in restoring confidence.

Through the decentralized nature of blockchain, one can transparently authenticate ad impressions and interactions, which helps fight ad fraud, rewards real viewers, and optimizes the effectiveness of ad expenditure.

How Blockchain is Transforming the Media Industry

This section explores how this web3 technology is transforming the media industry by improving transparency, enhancing content security, streamlining royalty payments, and fostering new revenue models.

Improved Asset Security

Blockchain in the media helps people to combat illicit data dissemination while also fostering trust. Creators may turn their contents into digital data encrypted and restrict access to them so that only those engaged, such as advertising, agencies, publishers, tech suppliers, and paying clients, can access them.

Furthermore, the developers are able to detect suspicious attempts to hack and steal assets. By automatically checking that all transactions satisfy certain criteria, smart contracts can halt breaches in their tracks. Each party in the chain have access to the publicly documented transaction history. To fight piracy and safeguard intellectual property, artists can utilize blockchain through smart contracts to confirm identities, manage content distribution, and keep ownership rights.

Innovative Revenue Streams

In addition to improving the safety, efficacy, and credibility of the entertainment supply chains, blockchain enables a hike in producers’ profits by delivering limited clientele digital content with extra value. Digital services with additional value may be differentiated and new features can be created.

Clients (including content providers and marketers) and consumers are becoming more demanding, and this technology may help satisfy their needs. Along with process improvements, it achieves this by bolstering current media supply chains with more trust, quality, and security.

Additionally, the innovation enhances the client experience by providing targeted groups with less relevant and recent information. A high rate of return and earnings are the long-term outcomes of this.

Enhanced Fans’ Connections

New avenues for direct engagement between artists and their audiences, as well as innovative monetization are emerging thanks to blockchain technology. Tokens and blockchain-based systems allow fans to take part in interactive experiences, vote, attend live events, and win unique artifacts.

This fosters a stronger bond and interaction between artists and fans, which in turn increases revenue and audience devotion. Fans may also acquire one-of-a-kind digital assets like artwork or rare movie clips through tokenization with the use of non-fungible tokens (NFTs). This not only gives creatives a fresh revenue stream, but it also deepens the connection between them and their fans.

Better audience targeting is another benefit of the blockchain platform. Customers get fewer ads that are more relevant to their interests and delivered at the right moment. When combined with AI, it takes customer service to the next level.

Fraud and Privacy Protection

Blockchain offers protection against intellectual fraud. Every year, the US film and TV business loses almost $71 billion due to unique digital piracy, forgeries, IP infringement, and digital item duplication. By using a time-stamped, immutable ledger, blockchain enables inventors and artists to digitally preserve intellectual property rights and the information associated with their original works.

Because blockchains are append-only, artists and creators can more easily legally assert their rights in the event of infringement. The widespread distribution of pirated media causes enormous financial harm to artists and content producers all around the world. The good news is that there are already some small-scale uses of blockchain, like content monitoring and the use of forensic watermarking technologies to combat this issue.

 

Even if one cannot eliminate the problem entirely, the role of blockchain technology has begun to prove to be an effective fight against piracy. The transparency it offers makes it easy to trace any illegal activity on the distributed ledger.

As reddit users say, “The hype is wearing off. Blockchains are just distributed databases that enforce data integrity with encryption.”

Final Thoughts

The media and entertainment sectors are seeing an increase in blockchain application cases, and this adoption is already transforming and enhancing the industries. The biggest names in media and entertainment are realizing this, which is why they are seeking out blockchain experts to assist them in developing and implementing their own unique blockchain solutions.

Future generations of artists, innovators, and fans will benefit from the digital revolution of an entertainment sector that is less risky, more productive, and more open to collaboration.