NFT technology poised to be a transformative force in media and entertainment

Often compared to the internet for its disruptive potential, blockchain technology has rapidly spread to nearly every industry — including media and entertainment — even though it started as a leverage for financial transactions.

Over the past few years, we have seen media and entertainment companies begin to leverage blockchain technology to change the way they develop and distribute content.

Disney was a pioneer, developing a private blockchain platform back in 2014 to make transactions more reliable and transparent.

Recently, media outlets including The New York Times announced that they will use blockchain to fight fake news. In March, Time magazine even released the first fully decentralized magazine on the blockchain.

At present, the full potential of blockchain technology is just beginning to be realized, but it can already help media and entertainment companies solve some long-standing challenges.

Intellectual property issues and infringements are rife in the media and entertainment industry, and musicians, artists and other entertainers have long struggled to maintain ownership of their work, meaning they are often not paid fairly, and for musicians This is especially true with many artists arguing for higher royalties from streaming platforms.

Artists like Taylor Swift also face an uphill struggle to maintain control and ownership of their intellectual property.

Intellectual property problems in the music industry are fueled by a lack of transparency, research by a Middlesex University professor has found. Artists often do not fully understand contract and copyright terms, which limits their ability to ensure they are fairly compensated.

"The specifics of many streaming deals are largely hidden behind non-disclosure agreements, so artists and songwriters may not know the terms of copyright use," the authors explain.

The end result is usually that most of the money tends to go to middlemen rather than artists.

Using blockchain technology, musicians (and other creators) can register their IP, then link lyrics, videos, and even personal information to the blockchain by embedding it as metadata in digital recordings, all of which will be Transparent and open.

Creators can also use blockchain “smart contracts” to dictate who can download and interact with their content — and more importantly, how they will be compensated as creators.

When a consumer downloads a song, album, or other work, the smart contract is triggered, automatically billing the buyer and appropriately compensating the creator.

Smart contracts also enable artists to keep track of every stream on the network, never missing out on potential royalties. It's a huge deal because the top 20 music streaming platforms have already earned an estimated $424 million from so-called "royalties," and the platforms don't know who to pay them.

Trust in the media has reached an all-time low due to fake news, which has undermined public confidence in the media and left many consumers misled.

With more than 3,000 news organizations in the U.S. alone (and countless independent journalists), a large pool of journalists exacerbates the potential for fake news, making it increasingly difficult for consumers to discern which sources they can trust.

Given this situation, it’s no surprise that the world’s largest media giants, such as The New York Times, are eyeing blockchain to combat fake news.

Because blockchain technology relies on a decentralized and immutable ledger to record information, it is always verified.

This means media and entertainment companies can link everything they publish, including articles, quotes and photos, to the blockchain and be confident that it won't be tampered with.

The Harvard Business Review reported that The New York Times began seeking to combat disinformation several years ago through its News Provenance Project.

A key part of this plan is to create a set of metadata standards for photos released by the press, detailing and unambiguously detailing attribution information, and ensuring that once a photo is shared on social media, verification efforts by journalists, photojournalists and their editors will not modified.

The sheer size of many media and entertainment companies means that individual artists and creators have less control and ownership of their content, as well as limited opportunities to make money.

When individual artists distribute their music through large media platforms, they are often unfairly compensated.

For example, when musicians distribute their music via Spotify or Apple Music, about 70 percent of the revenue goes to music rights holders, who are usually not creators.

NFTs can effectively assign ownership to specific digital items, such as artwork or even blog posts, changing the way individual creators monetize.

NFT gives individual artists and creators more autonomy over how to monetize their works.

Some of the biggest social media giants have embraced NFTs, no doubt realizing that creators need web3 business models.

Mark Zuckerberg recently announced that NFTs will be coming to Instagram, and YouTube recently announced the integration of NFTs into its creator tools, so creators can earn money directly from fans who buy rights to their videos.

Considering the potential of new monetization channels, YouTube’s chief product officer explained, “We believe that new technologies like blockchain and NFTs can allow creators to build deeper relationships with their fans, and they will be able Collaborate online and make money in ways that were not possible before."

Ultimately, blockchain has the potential to profoundly change the monetization pipeline for creators and create a more level playing field.

William Mugayyal, author of the best-selling book Blockchain for Business, has said: “Blockchain cannot be described as just a revolution. It is a tsunami-like phenomenon, moving slowly and steadily Gradually encircle everything in its path under the force."

Blockchain has proven particularly powerful in the media and entertainment industry. Issues such as intellectual property infringement, misinformation and unfair payment structures have plagued these industries in recent decades.

With an estimated global market size of $1.4 trillion by 2030, blockchain is expected to be a transformative force in media and entertainment.

Reference source: forbes

Compilation: [email protected]