How Blockchain Disrupts the Entertainment Industry
Entertainment business has long struggled with the gatekeeper problem.
So many barriers to overcome before you just barely crack the surface: Record deals, distribution rights, funding, you name it.
But even the entertainment industry is being flipped on its head with the arrival of the internet age and the democratization of content.
Through platforms like YouTube, Spotify, and Netflix, content is already being made more accessible and the road does not stop there. As the frustration over red tape continues to grow, people are looking for more ways to disrupt the industry and drive power back to where it deserves to be.
One way to do so is through blockchain technology. According to an article on CryptoDigest, the technology is already in the full swing of disrupting industries like healthcare, banking or agriculture.
It’s only a matter of time before crypto works its magic on entertainment, too. This is a brief report on the state of blockchain implementations in the entertainment industry, what has been done, what are the most promising concepts and where are any potential bottlenecks aside from the ingrained conservative nature of the entertainment business.
Blockchain to re-empower the artist
In entertainment, middlemen aren’t always a good thing. Too many parties involved will lead to hijacking of content, unbalanced income streams and loss of distribution control.
Blockchain-powered systems forge a more direct relationship between the artist and their audience. This is able to shave off critical costs and generate better returns for the artist.
One of the early innovators who tapped into blockchain for the music industry is Imogen Heap. In 2015, the Grammy-winning artist made use of the Ethereum Blockchain-based Ujo platform to distribute her song Tiny Human. This solution allowed her to price her song at just $0.60 per download — a substantial markdown from the usual pricing of $1 and up.
Blockchain for crowdfunding and fair trade relationships
The entertainment business belongs to the industries that forgot to innovate for the past few decades and its bureaucratic model is ripe for disruption.
Blockchain technology is creating more funding options, consequently more people get to earn their slice of the media pie.
SingularDTV, for example, invites fans to become investors themselves. This platform for funding of movie creation collates all forms of crypto and fiat currencies. This way it creates new liquidity in line with cryptocurrency exchanges and the 21M trading wallet.
The SingularDTV system targets everyone with a story to tell but without the means to deliver it to an audience. The innovative bit though is that it also provides an opportunity for fans to support and earn from films they actually like. This form of rewarding the fans is completely new and unprecedented.
Decentralized talent management
Because there are limited resources to scout every potential superstar out there, it is inevitable that some well-deserved talents end up fading in the background. Even for talents that are found, the struggle with funding is still real.
In sports, especially, young athletes have a difficult time covering their expenses when starting out.
TokenStars is the first to recognize this gap and to employ blockchain technology to facilitate deal-breaking support for upcoming sportsmen.
Funding for athletes opens up a wealth of possibilities and resources that can propel them to success — from better coaches and health support, to quality equipment and training.
Conducive collaboration between developers and publishers
Collaboration is the pulse of the entertainment industry, but it’s not always easy to do.
Smart Contracts can create a more streamlined approach to managing multiple teams and ensuring each member sticks to a pre-determined agreement.
In gaming, companies like Bounties Network and Qravity are connecting video game publishers to developers, tracking their contributions to new titles, and settling their wages via smart contracts.
Limitations ob blockchain tech: The price of transparency
Despite these exciting possibilities, however, blockchain technology still has its limitations.
An article focused on blockchain’s limitations by FXCM notes that while it has undoubtedly contributed to greater transparency and protection of intellectual property, it comes with the caveat of having to address the need for confidentiality.
Companies have to remember that preserving data privacy and commercial transparency doesn’t equate to integrity. At the end of the day, confidentiality terms must be agreed upon.
All in all, blockchain technology has yet to mature fully. It may take a while before it can be adopted into the vast Hollywood mainstream — a territory that is known to play it safe and stick to tradition.
But as history has proven, at the end of the day innovation is inevitable in business if one wants to stay afloat.
Disclosure: This article is not sponsored by anyone in any form.
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About the author
Written by BusinessOfCrypto
Opinions are author's own.
Edited by: Diana Trang
Diana Trang is the editor of The Business Of Crypto.
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