Friday, 4 March 2022

Blockchain’s Ever-Expanding Impact on the Entertainment Industry

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Blockchain has the potential to disrupt the way content is produced, aggregated, distributed and consumed — and the possibilities for content creators, brokers and arbiters of intellectual property are too big to ignore.

Major studios, angel investors and crowdfunding platforms are actively exploring the potential impact of blockchain and cryptocurrency access and investment on the entertainment industry.

Although blockchain is still most associated with cryptocurrencies like bitcoin, the emerging technology has the potential to offer multipurpose business applications for a range of industries.

“Media and entertainment offer an interesting use case because of two challenges the industry has struggled with as content has gone digital: the ability to protect as well as monetize intellectual property,” says banker JP Morgan. “For media companies, blockchain has industry-wide applications that can transform the way content is created, consumed and protected.”

Funding to blockchain companies doubled between 2017 and 2020, according to CB Insights, and actual spending is expected to reach $16 billion by 2023. While the most visible changes thus far have been in the financial sector blockchain’s gaining popularity is set to have a lasting impact on the entertainment industry.

According to Tony Fountain in an article for Rolling Stone, entertainment executives are starting to identify how it can impact their businesses. “Smart contracts, which are powered by the blockchain, could influence entertainment agreements, providing a secure alternative to traditional negotiations, ensuring reliable payment of creators, a more seamless way to work with the crew on global projects and eliminating the red tape that hampers many large projects.”

Ahmed Shabana, a founder of Parkpine Capital, tells Fast Company: “With crypto and blockchain, the movie and entertainment industry is poised to reinvent its business functions, facilitating secure, transparent, and traceable transactions across the market.”

According to JP Morgan, the entertainment industry stands to benefit from the implementation of blockchain-powered processes, like content micropayments, the elimination of content aggregation, more reliable and accurate royalty distributions, and support for consumer-to-consumer sales.

Experiments are stacking up. AMC Entertainment says it will be accepting Ether, Bitcoin and Litecoin for ticket and concession purchases by the end of 2021.

Last year, indie movie Zero Contact was among the first to be auctioned as an NFT.

Marvel and Fox have released NFTs, including a limited edition set for Deadpool 2. MGM did the same for the release of No Time to Die.

Cryptocurrency firms like CoinFlip, Robinhood and PayPal are tapping celebs like Tom Brady, Spike Lee and Neil Patrick Harris to drive mainstream adoption of the technology.

The IOC minted NFTs for a mobile game themed around the Beijing Winter Games and to drive digital merch for the same event.

“It’s only a matter of time before blockchain technology becomes core to the way in which we interact with new media,” says Fountain at Rolling Stone. “However, there remains a need to increase access and funding to diverse entrepreneurs and startups all over the world that often get lost in the background.”

Like the launch of the commercial internet in the 1990s, Fountain believes we’re at a transitional point. In a decade, media and entertainment will have transformed completely.

“As entertainment companies begin rolling out new technology to distribute media and collectibles through blockchain, it’s imperative that leaders watch this space.”

 


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