IBM Educational Post Shares Blockchain Uses for $2 Trillion Global Media and Entertainment (M&E) Industry
According to the recent report of the Department of Commerce of the USA, the total value of the global media and entertainment industry is close to 2 trillion dollars.
That also includes 4 largest companies – Facebook, Amazon, Netflix, and Google. A great part of that amount is inaccessible due to old and ineffective processes. Blockchain technology could replace them and transform the world of media and entertainment.
Blockchain technology offers many modern business ways such as crypto tokens, smart content and smart contracts. It could introduce digital intermediaries or the new entrants to help to recover the profit that would otherwise be lost.
Blockchain opens the door to the new modern business organization in M&E that could help improve the connection between the creator, curators, and the customer.
Some examples of what blockchain could do for this industry
A recent project of the artist Imogen Heap also uses blockchain technology. It’s a type of a creative passport intended for different professionals in the supply chain. Information about the professional’s work, who used that work and for what purpose and also their payment options are all in the passport.
The users cryptographically link the passport application to them, so they could get profit from copyrights directly via smart contracts.
Artists could use blockchain to link creators with curators, and both with consumers directly. Instead of paying large distribution fees and many brand intermediaries, the artists could profit directly from the audience. People could pay with cryptocurrency and microtransactions directly to creators for their content. That would be good for both the artist’s profit and customer’s pricing.
The creators could use cryptography to create content where the licensing would be embedded to them. This way, blockchain technology would promote legitimate purchasing and pirating content would become less easy and less attractive to people.
Some reasons why introducing blockchain could be difficult
In the last 20 years, the executives in this industry haven’t been very keen on technology innovations. The number of innovations of this type in M&E is so few that there’s a general impression that people in charge avoid every kind of change.
Not many companies are developing new platforms or partnerships to stay at the top of the business. It is a big question would traditional ways of merging and acquisitions be enough for the future.
There is a recent example of a large telecommunications company that bought an ad platform with an idea to start a digital advertisement business. But soon they stated that they’re changing plans because another more technologically advanced solution has a better future perspective.
If the media and entertainment industry wants to introduce blockchain, there are two things to consider. IT solution developers are familiar with proofs-of-concept and use cases to demonstrate the effects of their solutions. In business, that wouldn’t be a good way. People need to release the technology demo for commercial use to demonstrate its value in the right way.
The second thing is that a huge blockchain model intended to serve the whole industry wouldn’t work either because there are too many elements in the value chain that are too different to be managed in the same time.
Why a microchain would be a good option
Microchains are blockchains that the creators have defined well. They give fast results but also have a growth perspective for the future. For example, companies could use microchains in media and entertainment business in the case when different agencies have the same client.
The blockchain system could help them harmonize their services or simplify invoicing. That leads to lesser productions fees, the possibility to simplify the account team and speeds up the process.
To persuade the investors and businessmen in the M&E industry, microchain project should not be in the form of a proof-of-concept. It should be a convincing, sturdy, real working product. Also, it’s best to have a real business case that proves its value with concrete results and consequences as mentioned in the example.
Microchain should have an active business sponsorship with a related program and also milestones for estimating the value.
The business is changing quickly and innovations such as esports and VR are slowly reaching the popularity of traditional entertainment forms. New digital ways offer targeting methods in advertising with the purpose of better monetization.
Adopting these recommendations for a blockchain project in the media and entertainment industry could help seize the opportunity and show effective results.