Blockchain significantly is a secure and encrypted digital database shared by all parties in a distributed network. It is an undeniably ingenious breakthrough as it is arrived at from enterprise IT to finance, manufacturing and in almost each industry. There is no clandestine that the technology is set to radically disrupt a large number of sectors. Now it is poised to assist media and entertainment companies to rethink their business models and monetize value.
That means any transaction occurs in the network is recorded, validated and stored in the database and apparent to all participants, creating an irreversible transaction log. Since companies in the Media and entertainment field putting their effort on securing and monetizing intellectual property, blockchain can help them as it has industry-wide applications able to transform the way businesses perform.
Blockchain can also disrupt the way companies produce, aggregate, distribute and consume contents. It can transform several markets within media and entertainment, particularly those where participants would benefit from the security and transparency that blockchain would offer, such as the distribution of payments, funding, monetization, and contract enforcement.
Why Blockchain Matters in M&E?
As many new business models are evolving in the media and entertainment (M&E) industry, where monetizing value has been a significant challenge, several newspapers, and magazines are still wrestling to monetize value in term of plentiful free content and limited mechanisms for shielding intellectual property.
The most important income source for publications – Advertising revenue – that has now switched to social media and search platforms, media companies must figure out how to compensate. Here, blockchain may drive the revenue share captured by content creators and producers through new mechanisms for monetization.
Challenges to Consider
Blockchain could generate additional revenue streams for new and existing content and greater protection of content intellectual property for content creators. But the technology is still in its nascent stage and applications of it are still being developed. Furthermore, leveraging the full potentials of blockchain could require to replace existing technology in certain cases and integrating it into current processes will be time-consuming.
It is also significant for M&E companies to work toward building standards for employing blockchain and recognizing areas where the technology could benefit them, together with content creators, content aggregators, and distributors.
The Raodmap Ahead in M&E Industry
The media and entertainment field is a contracts-based business and places a premium to protect their intellectual property. So, blockchain can address these challenges and increase profits for content creators and media companies and provide real-time consumption-based pricing.
While blockchain technology is in the developing period, executives in this sector should learn about the technology and its potential use cases for their business growth. The technology offers companies the chance to reinvent their business models and enhance the value they have lost from creation to consumption, whether through new key players or digital intermediaries.
In a crux, there is much opportunity for the media and entertainment industry to leverage the power of blockchain to find out and share content and broker transactions. The technology can aid in thwarting the intricacies surrounding content creators and distributors and enable peer to peer transfer of value.