- Blockchain technology brings new ways for content creators to distribute and monetize their content.
- Ecosystems for smaller content creators are made more hospitable and accessible through cryptocurrency.
Blockchain has found vast applications in the finance industry, and rightfully so because of its ability to store records, allow for their verification, and allow for their future retrieval. It is a secure database, and many people across a distributed network can share it.
These people see what is happening on the network, and there is no individual with total authority; hence comes the aspect of decentralization. Blockchain technology has key applications in cryptocurrencies and other digital monies, but the technology has applications in a variety of industries, including aviation, media and entertainment, real estate, and retail.
The explosion in digitization and digitalization has led to Intellectual property theft. It has also led to piracy, as well as other ills that distort content creation, distribution, and monetization. There are also issues relating to consumer preferences.
Various consumers could get excluded because of the nature of the packages on sale, but the blockchain is upending and shifting how consumers can access the content. Essentially, blockchain is changing media and entertainment with respect to:
- Content distribution
- Revenue collection
- Customized content consumption and micropayments
- Revenues from content sharing
- Protection of IP rights
In the entertainment industry, distribution entities control how and what type of content reaches the consumers out there. These distribution entities are centralized parties, and they promote content based on their interests, and this often skews content consumption.
This means that the content of other artists does not get to the people, which means that they will earn less revenue compared to those artists whose works are the favorites of distribution centers and studios.
Blockchain technology is upending this model by allowing artists to interact with their audiences directly. Artists get to develop relationships with their audiences, and this will see consumers get content directly from the creators.
Streamlined Revenue Collection
If artists and other content creators can directly interact with their audiences without content aggregators or different types of intermediaries, then it means that they will get more revenue. Changes in the content distribution model are also changing the financial dynamics of the media and entertainment industry.
Traditional players like media houses and distribution centers who have been intermediaries in the media industry are getting cut off in the payments stream. In this scenario, blockchain technology is altering how and who gets the revenues generated from content consumption. In an environment where artists are bypassing these middlemen, it means that a more significant chunk of the revenue goes to the pockets of the content creators.
Customized Content Consumption and Micropayments
Traditional distribution entities and media companies often bundle content or select content to sell to their audience or the market. While there could be consumers willing to buy the content offered and consume it accordingly, it is worth noting that some consumers would not prefer such content.
Some consumers might not be willing to pay for a subscription, but might be willing and able to pay for a few songs, some articles, or one or two movies or TV shows. Blockchain technology allows for this, and it has been a slow but sure trend in the media and entertainment space. More consumers are increasingly making small payments – micropayments – which are payments for the content they only consume.
This is possible because the blockchain allows for proper record-keeping hence becomes easy to track consumption of content. In another world, creating and implementing such a model would lead to inefficiency, but blockchain simplifies the entire process.
A case in point is where a consumer would like to binge-watch a couple of TV shows and listen to some music. Traditional bundles or packages would cover such needs, but they would include other stuff that might not enthuse or interest the client. That stuff may not even be among the client’s preferences. The blockchain is addressing this by availing options for the consumer and pricing those options accordingly.
More Revenues from Content Sharing and Content Consumption
There are many peer-to-peer sharing services that people use to share content. This content could be music, movies, or TV shows. These practices are mostly illegal, and they also deny content creators` revenue.
However, blockchain is changing the business of file sharing by ensuring that content creators including online writing websites earn whenever you share content with another individual over the blockchain. When you share content hosted on the blockchain to your friend or any other party or individual, the content creators can track that sharing process and earn from that transaction.
Instead of losing out from the sharing of blockchain-hosted content, creators are earning from the process, and this is revolutionizing how people consume and share content today. This is stirring the waters in the media and entertainment space as it is a massive shift from traditional models and mechanisms. Revenue from content sharing can make creators write more reviews to make it easier for consumers to decide.
Protection of Intellectual Property Rights From Illicit Usage
Piracy largely denies content owners` revenue as people access and consume genuine content through illegal and unethical means. This has been the norm and trend for quite some time, but blockchain technology is changing the consumption of content – and this is for blockchain-hosted content.
The blockchain keeps records of transactions that occur. In this regard, when content creators upload and host their content on the blockchain network, it becomes possible and easy for them to track the people that use the content and the people they share the content with. The upside here is that there is a digital footprint, which is essentially a record that allows content owners and content creators to track the consumption of their content.
With this power in their hands, content creators are creating mechanisms that allow them to authorize the consumption and viewership of their works to tame theft and piracy. In this case, the content creators are dealing directly with the consumers, thus eliminating any third parties that could be unreliable or untrustworthy.
In summary, blockchain technology is revolutionizing the whole scene – the creation of content, its distribution, consumption, as well as the money part of it. The ability of blockchain to keep and track records, allow for direct transactions between two parties, and maintain the integrity of transactions has seen media players use the technology in their day to day activities.
Given that blockchain technology is self-governing and does not require any form of central authority or centralization, artists and other media players have leveraged the technology to change how media and entertainment business flow, all this to the chagrin of traditional distribution houses and other third parties.