Blockchain has been a phenomenon ever since its release in other sectors but Media and Entertainment can be one sector where it can transform itself into a cosmic phenomenon. It can prove godly for the sector in various ways. Bitcoin made news in the last month of the year 2017 when the cryptocurrency surged past $10,000 mark to a peak of $20,000.
There was the launch of Bitcoin Futures and its acceptance by Australian Stock Exchange for stock settlement made it one of the most sought-after cryptocurrencies in the world. So, it won’t be late or wrong that we see the impact of Bitcoin in the field of Media and Entertainment in the year 2018.
Why Blockchain in Media and Entertainment Sector?
Blockchain has been one of those entities which enable a digital marketplace – both decentralized and tamper-resistant altogether. The transactions are recorded chronologically in a distributed ledger which makes it transparent to the users but encrypted so that nobody can change or fake any transaction made on it. ‘Smart Contracts’, which can also be understood as automated transactions through agreed business rules, logic and contract, can also be programmed to make it more connecting. In the Media and Entertainment sector, there is a potential market for Blockchain technologies where participants would benefit from both security and transparency in the field of Payment, funding, monetization and contract enforcement. Let us check out the benefits of the cryptocurrency in the field of Media and Entertainment –
It is always a possibility in the Media and Entertainment sector that the producer, distributor, and others do not come to terms as far as the monetary distribution is concerned. Because of sharing and distributions of copies, the music streaming sites and rights holders often struggle to agree on compensation for trillions of song streams leading to legal fights and loss of money. Royalty payment methods can be one of the ways to rectify such mistakes as the Open Music Initiative (OMI) composed of 200 members including Sony Music, Warner, YouTube, Netflix, and Spotify. OMI revealed to CNBC that it is considering Blockchain as a foundational technology. The vision includes a Blockchain-based ledger which contains music assets and their rights holders. Smart contracts can then automate royalty payments based on a song’s consumption including streaming.
Crowdfunding for Creative Productions
Blockchain start-ups across industries marked the uprising in the year 2017 where funding was made through Initial Coin Offerings (ICOs) which cryptocurrency like bitcoin to crowdfund new ventures. This can be used by creative productions to leverage ICOs for crowdfunding. Many of the funding sites such as Indiegogo launched its own ICO platform. So, these ICOs for films and other creative ventures could ramp up in 2018, contingent on how the Securities and Exchange Commission (SEC) applies and imposes securities laws to ICOs.
In the partnership with Nasdaq, NYIAX has recently launched a Blockchain-based ad exchange platform which allows the publishers and advertisers to efficiently trade advertising contracts. Richard Bush, Chief Product and Technology Officer states ‘With Valuable experience in capital markets, NYIAX has a long-term vision to create a more financially rigorous model leveraging fin-tech best practices with advertisement and media.’