Blockchain application in Media and Entertainment
Shruti Tripathi · 2018
Blockchain is currently one of the most widely discussed and hyped technologies. It has the potential to disrupt existing but also to enable new business models — The top 3 key takeaways in the blockchain technology in the media industry are: New pricing option for paid content using Blockchain: Blockchain makes even micro-cent payments cost-efficient. Current cryptocurrencies, such as Bitcoin or Ethereum permit transactions as small as fractions of cents. It is thus an enabler for penny price content purchases, such as paying for reading a single news article or streaming a single song. Also, traditionally ad-sponsored content such as YouTube videos can be monetized with an “ad-free” alternative for a small fee. — Consumption of paid content without boundaries: National / regional limitations of paid content subscriptions and DRM complexities will be decreased by the Blockchain. Blockchain is not a technical prerequisite for this endeavor since more sophisticated Digital Rights Management systems are also capable of dealing with complexities like multi-country access. Nevertheless, the blockchain has the potential to make DRM systems obsolete or at least to reduce the complexity of these systems, because every transaction/ consumption is tracked in the blockchain and directly linked to a user. The payment will be automatically initiated according to the underlying smart contract terms for the content. — Smart contracts: Ethereum, the second-largest blockchain network by market capitalization, was the first platform to introduce the concept of a smart contract. Smart contracts enable counterparties to automate transaction tasks that are typically performed manually and that require the involvement of third-party intermediaries. Smart contract technology can result in processes that are faster and more accurate and cost-efficient. — Challenges in implementing blockchain technology: — • Trust in blockchain technologies and platforms — • Opaqueness of blockchain platforms and standards due to quickly-changing market participants — • Usability and reach of blockchain technologies in everyday environments — • Interoperability of platforms and various standards needs to be secured