Entertainment industry: Challenges and opportunities for Bitcoin

Are you a music producer looking for more efficient ways of raising revenues and eliminating middlemen? If you are a person who is keen to try out new business models to make more money through your own content and prevent such content from being copied and stolen you should seriously consider the Bitcoin and blockchain technology.

While being a part of the media industry today is not a huge challenge, due to platforms like YouTube, the unfair compensation for music artists and uneven content distribution continue to be big problems. But if one were to implement blockchain technology then this method of communication can become decentralized. With the blockchain, both artists and their fans can directly interact with one another without the need for any intermediary.

How can Bitcoins and blockchain resolve problems faced by the entertainment industry?

  • Blockchain is a disruptive technology and has drawn a lot of attention in recent times, but its full adoption is still ridden with problems. However, one cannot deny that this technology has the power to change the way the entertainment industry functions today. As the blockchain will contain records of transactions relating to a certain asset, the authorized viewers can track all activities relating to that content, like usage, ownership, and smart contracts relating to it.
  • Bitcoins have introduced us to a world of frictionless payment options where the producers of any content can have tools to eliminate middlemen charges. This will introduce new business models, and producers can even reward users with Bitcoins in exchange for promoting and sharing their content. Bitcoin also revolutionized the crypto market with the launch of automated trading bots like bitcointrader and similar.
  • The music world must exploit the advantages of blockchain to ensure that the artists are pair fairly for their work. By embracing cryptocurrencies in this industry, there will be greater transparency.
  • When you think of the entertainment industry, you automatically think of big companies or studios that allocate resources; these are the so-called gatekeepers. These gatekeepers allow content to be published on their platforms but they will promote only that content that will benefit their interests. With blockchain being used, the communication in the entertainment industry will change; both fans and artists will now be able to interact with each other directly without any middlemen. When distribution channels get bypassed, more revenues will be collected by artists and this will also improve paybacks for the content creators and contributors.
  • Artists can also use smart contracts for enforcing license terms or distributing payments more efficiently. Micro-payments with stable coins like the Bitcoin may be done by users without worrying about costly transaction fees. Ujo music platform is one such platform that is meant for music artists who want to distribute their music independently. This platform collaborated with Grammy award winner Imogen Heap to distribute a song. Artists enjoy complete freedom to decide how they wish to get their payments and royalty payments are automated using smart contracts and Bitcoins.
  • Patents and IP rights have been a big problem for the media world and the endless piracy has made content creators suffer a lot. But this is going to change with the blockchain as this ledger will contain all records of transactions for an asset. This will allow authorized viewers to keep a tab on who is using the content, and transfer of content ownership. Monegraph is another blockchain-based system offering licensing, media handling, payment processing and content distribution for designers, artists, photographers, etc. Through this platform, the purchase and sale of licensed media is done under full control of the music artists.