In the media and entertainment industry, the ability to share a single, immutable set of records could be transformational in a wide range of contexts, from content distribution to advertising. Blockchain is a new technology that can introduce the possibility of seamless transactions, with data coexisting between multiple parties all having controlled access to a single, shared source of the original material.
In the context of media, entertainment and advertising, blockchain can be defined as a shared ledger that can be used by multiple parties to work together in a value chain or across an ecosystem to leverage and help update a single version of records. Cases for blockchain application in media and entertainment are continually growing as the sector strives to address its different challenges with novel technology solutions. Due to the considerable possibilities offered by blockchain, the blockchain in media, entertainment, and advertising market size is forecast to reach USD 6.62 billion by 2027 growing at a CAGR of 82.3% over 2020-2027.
Blockchain in media and entertainment is increasingly enabling disintermediation, streamlining digital rights management, and creating a more transparent system for all participants ranging from content creators to advertisers. In an environment rife with middlemen, unequal distribution of profits, shifting consumption habits, and multiple inefficiencies, blockchain can become the answer to many problems.
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Blockchain Use Cases
Below are some instances that the media, entertainment and advertising industry has been found to face:
- In 2018 it was found that there was a significantly unjust profit distribution in the music industry in the United States. Despite an all-time high spend of over USD 43 billion, artists only received about 12% of the income which amounted to roughly USD 5 billion.
- Bot traffic, invalid traffic, and hidden ads all continued to drain advertisers’ purses in 2019, resulting in both low ROI and a miserable user experience mainly due to advertising fraud which cost the industry around USD 23 billion.
- By 2022, piracy in the media and entertainment business is expected to cost the industry nearly USD 52 billion. The large number of counterfeit versions of content results in significant losses for content providers and artists all over the world.
Blockchain can solve all these problems. By deploying smart contracts that meet preset requirements, it can streamline and enable more accurate royalty payments. In the media and advertising industry, blockchain provides immutable metrics that allow agencies, advertisers, and clients to authentically track and attribute advertising metrics so they can see how their money is being spent and where real clicks are being generated. Though difficult to combat, blockchain’s effectiveness in preventing piracy in the media is beginning to emerge.
Benefits of Blockchain In Media, Entertainment, And Advertising
Some of the benefits that blockchain can provide to the media, entertainment and advertising include:
Lower Costs: blockchain is expected to lower cost as it could eliminate the middleman. This could help businesses save money by lowering the cost of advertising. If a business were to place an ad through an internet firm, for example, it would be charged a price that would normally include processing fees. Then, when the business sells a product or service, it will be again charged another transaction fee. This means that the cost of marketing and transacting is to be borne by the business. However with blockchain businesses will be able to purchase ads and process transactions at little to no additional cost, which would give them the competitive advantage of price flexibility.
Rewarding The Consumer: At present, when visitors go to a website or online store, they are tracked. The company may have information about where the person has been, what they have looked at, and how many clicks it has taken them to get to the company’s site. The company then utilises this data to try to convert a visitor into a customer. The same can be true about Facebook and other corporations that have access to personal information, including how long someone has spent looking at a certain post. This data can be sold and utilised to help firms plan better. Blockchain can likely disrupt this process by allowing businesses to reward or compensate customers for voluntarily and securely sharing their information with them. When done through the blockchain, the procedure can keep customers safe while also rewarding them for supplying crucial information that businesses need to enable better advertising. The need for intrusive levels of information-sharing could be eliminated as a result of this.
Email Marketing: An inbox brimming with emails touting a steady stream of sales or the next big thing is a common complaint. There could also be a spam filter full of unwelcome stuff from companies that bought customer data from another company. But blockchain can disrupt email marketing if businesses reward recipients for accepting emails by incorporating a modest microtransaction, while deterring trash emailers due to the cost. Sending spam emails in mass would be prohibitively expensive for firms that send millions of emails every day. Salesforce, for example, was awarded a patent profiling how blockchain may be used to prevent spam emails from filling our inboxes.
Challenges of Blockchain
Additional revenue sources for new and old material, as well as better security of content intellectual property for content owners, could be created through blockchain. However, the technology is still in its infancy, and these applications are still in development. Early adopters must be informed of the risks and costs involved. Because blockchain is currently uncontrolled, clear rules for using the technology to create value must be developed.
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Furthermore, in other circumstances, getting the full benefits of blockchain may necessitate the replacement of present technologies. It will take time to integrate the technology into existing procedures, as well as to construct, test, and ensure its security. There’s also the issue of where to keep all of this intellectual property which involves deciding where will this enormous volumes of transaction data need to be kept. It is critical for media industry participants to work toward defining blockchain application standards and identifying areas where the technology could assist major actors in the sector, such as content providers, aggregators, and distributors.