What comes to your mind whenever blockchain and cryptocurrencies are mentioned? If you are like many people, you may think that the cryptos are only tied to the banking and finance sectors. Even though the two sectors are getting the most benefits from these new technologies, other industries such as entertainment are also being transformed.
The global entertainment industry is projected to generate about $2.1 trillion in 2021. However, this sector is faced with various challenges such as protection of intellectual property rights, distribution of art, and monetization of various forms of art. Cryptocurrencies are also solving some of these challenges, as explained below.
Piracy has been one of the biggest challenges for content creators in the entertainment industry. Cases of musicians languishing in poverty while their creations are being played locally and internationally are very common. Dubious producers and promoters have also been distributing content without the knowledge of the composers.
Blockchain and crypto technology provides a platform that can put piracy to an end. Blockchain makes it easy to track the entire lifecycle of a digital asset. Content creators can thus track the sales they have made, the copies produced, and the number of people they have reached. Content stored on the blockchain cannot be duplicated without authorization as the entries have time-stamps and are stored on immutable ledgers.
Getting paid as a creative is not a straightforward process in the current setting. Cases of creatives receiving less than what they deserve or not getting any royalties are very common in the modern world. Greedy companies and promoters that sign artists also take advantage of the artists and take almost all their royalties.
Content creators can now create smart contracts that can help them gain more control over their creations. For instance, a smart contract can be created whereby money will be released to the promoters only after certain conditions are met.
We can also see digital tokens that are sold to fans who want to attend various events. The purchase of such tickets is recorded in real-time, and time-stamps are provided for every transaction. Content creators can also create exclusive content for VIP subscribers through blockchain.
The entertainment industry is joining other sectors such as gambling, eCommerce platforms, and technology companies to accept crypto payments. Sectors such as online gambling give huge bonuses to users who opt for crypto deposits on their platforms. Getting a Bet365 bonus code when you fund your casino account in Bitcoin indirectly through processors such as Netseller is a reality.
On the other hand, you may have wanted to tip your favorite artist who resides in a different region. However, when you consider the currency exchange rates, you feel it is not worth it. You may also want to buy the latest song or album, but the international payment platforms limit you. Cryptocurrencies allow you to send money directly to the content creator’s wallet without worrying about exchange rates. The beauty of this approach is that you do not have to worry about displaying personal details to third parties.
“Sorry, this service is not available in your location”. How often do you come across these words when you try to access various services online? Geotagging is common in the modern world, and you are sometimes denied services simply because you come from a certain region. Movie streaming companies such as Netflix are in most countries. However, you may find that some content is only available in some regions and restricted in others.
Blockchain and cryptocurrencies allow content creators to post content without relying on a third party. Geotagging becomes a thing of the past as content is hosted on distributed ledgers. The absence of a central party that ‘decides’ what you should watch is unavailable on blockchain content sharing platforms. Such platforms also allow users to access content anonymously and reduce incidences of targeted ads.
You may have dreamt of being an owner of some big entertainment companies such as Comcast Corp. (CMCSA) and The Walt Disney Co. (DIS). Some of these companies are traded in capital markets, and you can buy their shares. On the other hand, some want to remain privately owned.
Blockchain is changing how entertainment companies are owned through tokenization. Tokenization refers to the process of creating a digital token that represents a real tradable asset. It thus means that commoners can buy tokens of entertainment companies and become partial owners. This idea aims to increase liquidity and make it easy for people to sell and buy tokens (shares) of such companies easily. Cryptocurrencies and blockchain are yet to get fully mainstream, but we can so far appreciate the efforts in the entertainment industry. Various players are in the process of creating the right cryptocurrency ecosystem to make the realization of these dreams a reality.