The Role of Blockchain in Media and Entertainment in the Digital Age: Reshaping Blockchain Use Cases and Business Models in Advertising and Entertainment Markets

The global media industry has evolved at an astronomical pace in the last two decades. For instance, we moved very quickly from the VHS era to using DVDs and now are in the days of Netflix, Prime Video and other similar services. The music world experienced a similar revolution, shifting from cassette tapes to MP3 players and now digital recordings on smartphones.

Safe to say, we are now in the world of streaming services and digital content. And as this revolution unfolds, virtually every country is keying into what they believe is the future of the media and entertainment sector. The US, for example, is investing heavily in its content creators, realizing how much they contribute to the economy. For Malaysia, emphasis is on the gaming aspect of the media and entertainment sector. 

iGaming is gaining traction in Malaysia with investors contributing to the thriving industry. Taking a look at the list of trusted online casino brands in Malaysia reveals well-run and efficient platforms that prioritise player safety and incentives. However, all of these developments are just the starting point. Thanks to blockchain solutions, the world is unlocking even more potential in the entertainment, media and advertising industries. 

Kate Richardson, technology aficionado and betting analyst considers what the role of this transformative technology is in our everyday entertainment and art. Discover what that means for the future and potential use cases where blockchain could prove useful. 

Tracing the History of Blockchain Development: Is the World Ripe for Blockchain Adoption?

Speaking at a music blockchain event that took place in London back in 2016, Ric Salmon, now the Chief Growth Officer at ATC Group said: "Blockchain can provide the framework for a future music industry which is 10 times larger than today … I staunchly believe that we are on the edge of what is about to be the greatest era for the music industry in its modern times.”

Nearly a decade since and the future that Salmon spoke so fondly about is here. We now live in an era where decentralized music streaming and digital music are the order of the day. But it didn't always start here. 

Blockchain officially emerged in the year 2008 after Satoshi Nakamoto published his Bitcoin whitepaper. The whitepaper proposed a decentralized ledger that solved the world's double spending problem. In the early years afterward, blockchain was strictly focused on building digital assets for transactions through bitcoin and several alt coins. 

However, with the rise of Ethereum around 2014, focus shifted to smart contracts and decentralized apps, thereby paving the way for new business models around digital identity and digital collectibles. 

Today, blockchain offers more than just a digital infrastructure for currencies. It has shown capacity for use within the entertainment industry through digital art NFTs with several other use cases in the music and gaming scene. The major question now really is whether the world is ready for full-on blockchain implementation and the sweeping changes it will herald. 

As it stands, the world appears ready for the diverse applications of blockchain technology. While some work still needs to be done on the regulatory and public skepticism front, blockchain systems will single-handledly power the digital world of media and entertainment in the years to come. 

Use Cases of Blockchain Technology in Media and Entertainment Industry

Now that we can confirm that the world is ready to explore blockchain, let's check out some of the specific blockchain use cases in media and entertainment.

Royalty and Revenue Distribution

One perennial problem in the entertainment industry, especially with music stakeholders has been the problem of royalty and revenue sharing. Due to a lack of transparent systems that make it hard to ascertain real-time earnings, artists tend not  to get fair compensation for their work. 

However, by using smart contracts, revenue distribution systems are automated and streaming platforms, for example, are able to pay all contributors their royalty in real-time as it is being accrued.  

Digital Rights Management

Another use case of blockchain for media is in digital rights management. Through emerging tech, content owners register their work on the blockchain and ultimately create an immutable record of ownership. The intellectual property of owners are fixed and authorization is required for any use or content distribution and licensing. 

Anti-Piracy and Content Authenticity

Blockchain allows content creators and even general media users tackle digital piracy. Since creators can store their content on the chain and have verifiable proof of ownership, knock-offs can be easily detected. Every true content owner will have digital proof of ownership and anyone who simply needs to verify the authenticity of a work can do so on the smart chain. 

Benefits of Blockchain in Media and Entertainment

Gartner, one of the world's most notable research and advisory firms has predicted that blockchain will deliver business value in excess of $3.1 trillion by 2030.  This rather ambitious goal assumes that the market size of on-chain adoption will skyrocket in the next few years and understandably so. The benefits of blockchain in the media and other industries is simply too much to pass by. 

Here are some of the potential advantages for artists, creators and fans in the entertainment sector. 

Increasing Data and Payment Transparency

The nature of blockchain demands that there be an immutable ledger of all transactions and content usage. In turn, every one would be able to see just how content is used, monetized or shared. Additionally, transparency will reduce disputes over royalty and revenue sharing. 

Elimination of Third-Party Intermediaries

Artists and stakeholders will be able to sell their work directly and earn royalty payments without the need for intermediaries in the market. This way, they get to maximize their value and get an equitable share of whatever income their works generate. 

New Revenue Streams for Creators and Fans

One overlooked benefit of the entertainment applications of blockchain is the creation of new revenue streams for different players in the industry. Blockchain provides for the introduction of digital tokens such as NFTs and collectibles. Artists can thereby create and monetize their tokens while fans earn tokens by engaging their favorite creators. These tokens can be exchanged for real-life prizes or even cash.

Final Thoughts: How Blockchain Could Unlock Opportunities for New Players in the Advertising and Entertainment Market

Let's close with the words of Don Tapscott, the co-founder of Blockchain Research Institute who quipped: “The technology likely to have the greatest impact on the next few decades has arrived. It’s not social media, big data, or robotics. It’s blockchain.”

Those words couldn't be any truer. Blockchain holds the potential to reshape media, entertainment and even advertisement from a global standpoint. It starts by ensuring transparency and enabling fair revenue distribution through smart contracts. In the future, it will open up new monetization models while reducing barriers to entry. 

By democratizing ownership, blockchain for entertainment will empower startups, individuals and conglomerates to compete favorably in an equitable market, thereby helping to push the frontiers of the market. 

The article was provided by Kate Richardson