– JP Morgan
Media and entertainment places a premium on protecting and monetizing intellectual property. For media companies, blockchain has industry-wide applications that can transform the way content is created, consumed and protected.
– Monitor Deloitte
Blockchain is currently one of the most widely discussed and hyped technologies. There are only a few industries that are not either excited or worried about the concept, as use cases, proof-of-concepts, and fully fledged businesses based on blockchain principles are emerging at an increasing pace. This much is certain: blockchain has the potential to disrupt existing but also to enable new business models.
How Blockchain will disrupt the Entertainment and Media industry?
It is human nature to interpret something new in the context of what we already know and understand. We “anchor and adjust”. It’s the reason that Henry Ford talked about his customers’ expectations of faster horses, and it’s the reason that in experimenting with a new technology, we usually start by applying it in place of something else. This sometimes seems like a waste of time, but is often an important part of the process of learning about how the technology works.
Wall Street has already adopted crypto technology, but Hollywood is pretty new to it. While the entertainment industry might be a few years late in implementing crypto, it has now realized that blockchain has the potential to revolutionize the distribution of music and movies, and can resolve the piracy problem.
For several decades, the entertainment industry has been governed by distribution companies and studios. A large part of the earnings were lost in the process of delivering content to the audience, and the artists didn’t get paid a fair amount. Publishing and distribution agencies owned a major chunk of the profits made by the artist.
– Disruptor Daily
The television broadcasting industry in the United States alone saw revenues of over $157 billion in 2017. This is a massive uptick from even 2010’s revenue figure of approximately $110 billion. Streaming services, such as Netflix, continue to see an increased market share, with the most well-known company in streaming garnering an impressive $11.7 billion last year. Meanwhile, the film industry, while it’s had to cope with challenges including the advent of streaming services lowering theater appeal, is holding its own. Global box office revenues are projected to grow from $38 billion in 2016 to $50 billion by 2020. Three 2018 films made historical marks, with Black Panther’s $1.344 billion box office take ranking ninth of all time, and Avengers: Infinity War coming in at fourth of all time with over $2 billion in box office revenue. Incredibles 2, also released in 2018, became the highest-grossing animated film of all time. In other words, the demise of theatrical releases has been greatly exaggerated. But that does not mean the industry can be complacent. Those creatives who don’t have large superhero franchises to provide guaranteed revenues may find the blockchain to be an appealing way to obtain funding from niche audiences willing to crowdfund projects that reflect their tastes. Blockchain tech has also been proposed as a mode for fairer royalty payments and compensation, as well as a tool to combat piracy and perhaps even provide innovative ownership platforms to revive that segment of the film and TV industries.