The blockchain in media, advertising, and entertainment industry is expected to register a CAGR of 82% in the forecast period. Blockchain is disrupting not only the existing business models but is also enabling the development of new business models, especially in the media industry.
- The digital technologies are substantially transforming the global media and entertainment industry, especially in the areas of content production and distribution, with blockchain being the most prominent technological disruptor. According to Accenture, 55% of media and platform executives think blockchain is a top-five priority for their company. Also, 83% of executives plan to increase blockchain investments in the next three years.
- The need for blockchain in media and entertainment is increasing owing to the subsequent commoditization of content and widespread piracy of intellectual property (IP). The increasing need for eliminating intermediaries between content creators and end-users, the growing demand for secure and faster transactions, and the growing instances of data piracy in the media and entertainment, are some of the key factors driving the market.
- Further, media users are accustomed to having free access to a wide variety of content, as the media and entertainment industry is a contract-based business that places a premium on the protection of intellectual property. Also, all media segments have suffered significantly from digitization, since content can be copied and distributed quickly and without loss of quality. This is because the Digital Rights Management Systems has not yet reduced copyright infringements.
- With the advent of blockchain, this industry structure could change significantly. Blockchain technology permits bypassing content aggregators, platform providers, and royalty collection associations to a large extent. Thus market power shifts to the copyright owners. Blockchain technology has the potential to increase profits for content creators and media companies by providing real-time consumption-based pricing against assets with an immutable state and digital identity. This solution reduces transaction costs by 40-80%, thus making payment application the leading segment amongst others.
- This technology also eliminates the need for intermediaries and subsequently reduces the administrative costs and time for the providers and payers. However, lack of standardization is hindering the growth of the market to a certain extent. Also, the process of implementing new technology is expensive and time-consuming, hence restraining market growth.
Scope of the Report
Blockchain technology is a digitalized public ledger. Initially, it was only used for cryptocurrency transactions. The blockchain is now used in various sectors of the manufacturing industry, such as consumer electronics, media and entertainment, automotive, aerospace, and defense, textile, energy, and power, food and beverages, etc. Various processes, such as transactions, transportation, and stock management, are noted and organized sequentially without maintaining any records or files.
Key Market Trends
Payments Application is Expected to Dominate the Market
- Media users are nowadays highly accustomed to having free access to a broad variety of content. This is primarily because the media and entertainment industry is a contract-based business that places a premium on the protection of intellectual property. Also, all media segments have suffered significantly from digitization, since content can be copied and distributed quickly without loss of quality.
- Blockchain technology provides real-time consumption-based pricing against assets with an immutable state and digital identity. This solution reduces transaction costs by 40% to 80%, depending upon the level of adoption and extension in the industry, thus making payment application the leading segment amongst others. Another popular application, cryptocurrency, is facilitating micropayments to content providers. Companies use it for enabling customers to buy and play single songs or videos, for instance, or to purchase permission to read a news article.
- A blockchain-based startup called Yours operates a digital platform on which authors and other content creators publish their work and charge fees in the form of Bitcoin Cash (a spinoff of Bitcoin). Since transaction costs in Bitcoin Cash are extremely low and no banks or credit card companies are needed to complete a sale, authors can charge as little as a few cents per article and publish and monetize their content themselves.
- Pay-per-use consumption has become feasible due to the blockchain-powered micropayments. Blockchain's ability to keep a comprehensive record of its data could allow for more accurate tracking of when and how copyrighted content is consumed.
- Many content providers are using technology to accept payments through bitcoin. For instance, Dish Network has taken Bitcoin as payment from subscribers since 2014 and recently started accepting the slightly different (but still crypto) Bitcoin Cash as payment.
North America Expected to Hold the Largest Market Share
- North America is expected to hold the largest market size in the global blockchain in media, entertainment, and advertising market during the forecast period. The region has witnessed increased investments in the blockchain in media, advertising, and entertainment industry owing to the presence of key players in the region. The early adoption of advanced technologies and digitization are expected to fuel the growth of the blockchain in media, advertising, and entertainment market.
- Canada is one of the fastest emerging countries in the region as a major player in blockchain development. This is primarily because of the initiatives such as Toronto's Blockchain Research Institute (BRI), Montreal's Blockhouse, and Vancouver's BC Blockchain Forum. These initiatives are bringing together start-ups, private sector companies such as IBM and Accenture, and various levels of government to establish a strong foundation for the developing ecosystem.
- For instance, Dubtokens, which has offices in Montreal, Toronto, and Switzerland, whose Interactive Video and Experience Protocol (IVEP) is a blockchain-based platform. It combines a real-time data and payment infrastructure with a personalized experience for each viewer and is compatible with popular web-based services such as YouTube, Facebook, Vimeo, and Twitch as well as TV and radio distribution networks.
The competitive landscape of the blockchain in media, advertising, and entertainment industry is moderately concentrated as there are very few players offering blockchain solutions, especially in the media and entertainment industry. The vendors have adopted different types of strategies, such as partnerships, collaborations, and acquisitions, and new product launches, to expand their presence in the market and also increase their market share.
- January 2019 - Global blockchain company The Bitfury Group, recently announced the launch of a music and entertainment division that will create an open-source music platform secured by the bitcoin blockchain. The open-source platform, named SurroundTM, will encourage collaboration and promote innovation within the industry, the company said.
- June 2018 - EY and Microsoft launched a blockchain solution for content rights and royalties management. Aiming to streamline the costly and time-consuming processes in entertainment rights and royalties, the solution is first being deployed within gaming with Microsoft and its game publisher partners.
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