The entertainment industry can benefit a lot by integrating blockchain technology. This technology can be favorable for both creators and fans in the industry. The decentralization and transparency feature of blockchain can protect filmmakers from piracy. Similarly, blockchain also facilitates smart contracts that can help parties to execute agreements securely. Furthermore, the existing payment systems may be enhanced considerably due to this technology.
Blockchain technology is going to benefit several sectors within the entertainment industry. It is a fact that the outdated technology used by the industry is harming it. A few players in the industry are dominating the streaming market and some old movies are yet to be preserved in hard format. Therefore, blockchain is very much needed to solve these challenges. Following are some of the benefits that this technology can offer.
Blockchain technology can directly monetize assets with the help of its smart contracts feature. It can also promote peer-to-peer micropayments. This can improve the revenue-generating capacity of content producers and distributors.
Blockchain compared to other technologies can protect intellectual property better. The entertainment industry is plagued by regular and systematic theft of intellectual property. Property rights are often infringed upon with impunity and there is very little original producers of the property can do. Since blockchain has a robust transparency feature, it can help in tracking down the main perpetrators of IP theft.
Smart contracts can significantly reduce hassles in royalty payments. It can facilitate instant and auditable payments to artists for their work each time their consumers or publishers access their work. Moreover, innumerable artists in the entertainment industry can no longer work either because of age or health issues. For them, royalty payments are their mainstay. Therefore, blockchain can prove to be highly advantageous for such artists.
The application of this technology can assist and simplify film production. Sometimes, producers need different countries and locations for their filming purposes. Blockchain can allow a smooth transition through its international payment mechanisms and can save production budgets.
This technology can generate new streams of revenue for the entertainment industry. With the help of NFTs, creators can sell many exclusive assets, retain a portion of their profits, and are traded in the future. This accountability can affect streaming and encourage better financial systems such as the pay-as-you-go model.
Fanbase is crucial for many artists in the entertainment industry since it indirectly affects their prospects and earnings. With the help of technology, artists can get the chance to add more fans. They can also create reward loyalty as if their career gains immense success.
The film industry such as Hollywood is steadily embracing both Non-fungible tokens (NFTs) and blockchain technology. Some studios and production houses are already focusing on exclusive collections of film characters. The rise of digital collectibles is focusing on many narrators, entertainment industry icons, and players. This may bring endless opportunities for the industry.
The enthusiasm for adopting blockchain is growing substantially. For example, around 4/5th of American and European entertainment companies are presently researching Blockchain options. Most are facing common issues such as scalability, high transaction costs, and interoperability.
Film distribution needs paid actors for the reach of a movie. Production schedules and advertisements are placed according to the demands of a studio. In such scenarios, the creators need to access the work of artists. However, such a move may invite copyright and ownership issues. Blockchain technology can resolve problems associated with copyright, identity, and ownership.
Similarly, in the field of television, blockchain can verify digital assets. It can also detect fake videos through timestamping and traceability features. Non-fungible tokens can also create exclusivity in a streaming world. Consumers can choose the channels and pay for the content’s amount through blockchain.
The peer-to-peer sharing feature of blockchain can be beneficial for music. However, it may take some time for the industry to adapt. The challenges pertaining to payments can reduce considerably because of blockchain’s support for NFTs, micropayments, and smart contracts.
The entertainment industry is facing many challenges like privacy issues, royalty payment delays, staff shortages, and the constant evolution of new technologies. Blockchain technology indeed has the potential to resolve these challenges and make payment systems hassle-free. It is also true that traceability and smart contracts features of blockchain can save a lot of revenue and prevent piracy. Moreover, it can also simplify payment systems, and assist in film production. There is a high chance that this technology may bring memorable changes in film distribution, television, and the music industry.