Introduction
As we continue to see distributed ledger adoption and innovation extend across industries, one industry, in particular, stands to benefit significantly from blockchain's transparency and traceability.
Because the media and entertainment industries are essentially relationship-based, intermediaries' margins and hidden earnings sometimes put producers at a disadvantage.
Many artists are never schooled or exposed to the intricacies of the law, business, and finance in their pursuit of creativity. The industry may potentially eliminate fraud, drastically reduce expenses, and boost transparency using blockchain technology.
One of the most concerning matters in the entertainment industry is content ownership and rights management. The inconvenient nature of determining who owns what in audio, video, and literary content has resulted in several litigation and payment disputes.
Blockchain technology promises to make it easier to track IP across numerous media. With this new technology, intellectual property rights can be appropriately followed, and digital rights management businesses can see the whole history of transactions.
For both artists and investors, distributed ledger technology can provide an efficient accounting application and rapid access to revenues. Profits are frequently retained by labels or studios, leaving artists and other stakeholders waiting months for monetary reimbursement for their hours of effort while accounting is completed. Blockchain technology is ideal for providing liquidity to all stakeholders.
Even though this type of innovation is only a few years old, numerous companies have already made a name for themselves.
Music
One of the most significant challenges for aspiring artists is obtaining finance to create their debut song or album. Artists may pour their hearts and souls into their work, but the labels are usually the ones who own it.
Streaming platforms have added a cog to this broken system by allowing artists to track their streams and even debut their music without the help of a label by establishing more direct contact between creators and viewers.
Vezt, funded by Sony and BMG, aspires to be the first music rights marketplace where fans may partake in the royalties of their favorite songs and recordings. The startup aims to reimagine the music industry by giving fans direct funding from artists, composers, and producers.
All song rights are encoded, and royalties are tracked on-chain. Fans can buy a piece of the song's requests for a certain amount of money, effectively owning a piece of the success that they helped their favorite musicians accomplish.
Verifi is another player that deals with music rights management by linking media files, ownership data, and artwork. Verifi's main selling point is synchronizing ownership among all stakeholders in a song, including the artist, label, and streaming provider.
Audius is a blockchain-based competitor to Soundcloud backed by Lightspeed Ventures, General Catalyst, and Kleiner Perkins. Audius provides free hosting to its artists, returns up to 90% of the money to the creative, and promises up-and-coming musicians better discoverability and fan interaction. DJs like Deadmau5 and 3Lau have already made their home on the site.
Visual Content & Media
The music industry isn't the only one that can benefit from distributed ledger technology. More efficient tracking of IP ownership and streamlined financing and compensation processes could aid film, television, and short-form digital media.
FilmChain, an Ethereum-based project tackling the borderline Hollywood film industry, collects, allocates, and analyzes earnings in cinema, television, and other digital media. The platform's primary purpose is to promote openness in the distribution process, allowing stakeholders to be reimbursed without the involvement of a middleman.
Projects can also access global funding and build international audiences via the platform.
StreambedMedia, based in Toronto, is developing a content provenance system that will allow artists to trace content posted on YouTube, Twitter,
Instagram and Facebook use a reputation system.
The free platform allows you to share traffic data with other creators and permanently link yourself to people who paid you to make the video, those who shared it on other platforms, and other co-creators. StreambedMedia's strategy capitalizes on a big trend that has yet to be fully realized: the use of blockchain to finance micro-content.
Audience Engagement
Every entertainment industry revolves around attracting and retaining viewers. Whether it's movies, music, or any other form of media, effective engagement - and, by extension, monetization - is critical to its long-term viability and profitability.
Audigent is a new kind of open data platform for advertising in the entertainment, sports, and lifestyle industries. The startup is supported by a new fund, Raised in Space, collaborating with Ripple's XSpring, Scooter Braun, and Warner Music Group, and has active collaborations with YouTube and Instagram.
The company aspires to be the first all-in-one solution for audience engagement and monetization of first-party data.
Of course, the ultimate purpose of audience involvement is to convert it all into event ticket sales.
Ticketing has been recognized as one of the most viable blockchains used in the entertainment industry. It effectively combats scalping and bogus ticketing while allowing artists to maintain complete pricing control.
YellowHeart aspires to be the first ticketing platform "socially responsible." A band, concert venue, or other "event initiator" can use the platform to set criteria for how their tickets are resold.
By establishing a price ceiling, the CEO seeks to avoid middleman markups and ensure profits stay with the artist and the fans. Instead of bad actors, the company wants to seize up to $10 billion every year on the secondary market from scalpers and return it to fans, artists, venues, promoters, or charities.
Above all, distributed ledger solutions in media and entertainment aim to improve transparency and accountability for the creator's benefit.
As a result, the finished product is often more affordable for the consumer, eliminating unneeded intermediaries and safeguarding the valued and long-cherished artist-fan relationship.
Conclusion
Some experts think blockchain may increase the share of revenue captured by content creators and producers by introducing new mechanisms for monetization.
However, the current hype about blockchain, the diversity of use cases being proposed, and their potential disruptive effects make it difficult for companies to judge what might be possible for them and what’s merely a pipe dream. If crypto and blockchain interest you, visit CEX.IO for more information on all cryptocurrencies and maybe even invest in some of them.
