As we move towards digitalization, the world of media has also changed significantly. Different roles have been established along the media value chain. For example, artists and authors have become the primary creators of content, while platform providers and aggregators of content are donning the hats of royalty collecting body.
Blockchain technology can disrupt the industry structure further by bypassing content aggregators, platform providers, and royalty collection associations, thereby shifting the market power to copyright owners.
Derived from the Bitcoin, blockchain is ‘a distributed database that maintains a continuously growing list of records, called blocks, secured from tampering and revision. Sealed in the chain, blocks can no longer be changed -preventing further deletion, edition, or replication, thus making it true digital assets.
This technology has the potential to resolve some of the current challenges prevalent in broadcast and media industry with ease. Listed below are some ways in which blockchain can benefit media.
Blockchain technology can generate revenues for fragmented content like news, blogs, and photos with micropayment-based pricing models. With targeted media usage that can be directly linked to respective content, budget allocation for advertising and marketing also becomes more targeted.
While the technology is still in its nascent stage, revenue distribution can be automated based on predefined smart contracts, thereby making payment transactions cheap and centralized. This can potentially reset pricing, advertising, revenue sharing, and royalty payment processes.
Protecting IP Rights
While digitization has altered content production and distribution, protecting the intellectual property of the content remains a major concern of the industry. Though several brands are charging to access digital content, consumers are looking for similar content elsewhere for free. Blockchain technology connects these brands directly to consumers who compensate them accordingly (and securely) for access to digital content
Blockchain records the history of every transaction. Therefore, it can be used as a potential application to ensure authenticity and transparency. Social media influencers, authors, videographers, and photographers can use blockchains for provenance and attribution.