Blockchain in the movie industry
- 21. July 2019
- Posted by: Blockruption Team
- Category: Applications
Blockchain, the technology behind Bitcoin, is a buzzword that is often associated with industry disruption. So, how does it actually work?
Blockchain relies on a decentralized network to validate and record transactions in a secure distributed ledger. When a transaction occurs within the platform, it is independently verified by hundreds or thousands of users.
As each of these users validates the transaction, it creates a timestamped and encrypted record that represents a single block in the blockchain. All of these verified transactions are then linked together to form the blockchain, and these records cannot be removed, altered, or manipulated.
Since the data in the blockchain is permanent and is continuously reconciled, you can trace a transaction to its origin and trust that it is valid. Essentially, you can work with a variety of other entities and rely on the information presented without explicitly trusting the other party.
Blockchain in the film industry
Blockchain technology has the opportunity to be a scalable solution to many issues facing the film industry. One of the biggest potential benefits is the ability to establish and protect copyrights. Copyright infringement is one of the major insurance expenses for large film studios and can be a complete barrier to entry for independent and smaller distributors.
Since blockchain creates a record of transactions that cannot be manipulated or deleted, it would be significantly easier for distributors to track assets like stories, characters, and scripts. This would allow them to accurately maintain a record of where their content was being used and give them the tools to automatically collect any revenue and associated royalties.
Also, because transactions need to be validated independently and are then encrypted, the opportunities for piracy to occur are significantly diminished. For someone to falsify a transaction they would have to alter the entire blockchain, so content tracked within the platform is inherently secure.
Smart contracts within the blockchain will facilitate this further, as they can enforce distribution rules and release agreements between distributors and producers. Rather than having to trust each other blindly, they can have the peace of mind that the data in the blockchain is independently verified and cannot be fraudulently altered.
Crowdfunding is another major opportunity for filmmakers that may otherwise be overlooked by established studios. By using the blockchain to connect to consumers directly, these smaller content-creators could accept payments directly and gather support from their film. Eliminating the middleman would allow for greater competition and access for emerging regions and independent producers.
The fact that the blockchain is permanent and maintains the entire history of transactions also means that the industry would have greater visibility into the life cycle of a film. This will also allow for film investors to have greater transparency as to where their funds are going.
Examples of blockchain in the film industry
Blockchain technology has so much potential in the film industry that there are already several businesses and concepts out there today.
For example, SingularDTV is a platform based on Ethereum that lets filmmakers connect directly with production companies. They can also use smart contracts to find crews and pay them within the platform, allowing for more efficient and transparent payments.
MovieCoin is a company that uses blockchain to manage proprietary products and facilitate entertainment financing and consumer payments. It works by issuing a token that represents an investment in a movie or tv program, allowing individuals outside of the traditional film industry to fund and support their favorite films.
A firm called DECENT was formed to help publishers distribute their content across the globe through the use of blockchain’s decentralized and secure network. By eliminating the middleman, they hope to connect consumers to content makers directly.
As you can see, blockchain technology has the potential to provide important solutions to issues facing the film industry today, including global distribution, funding, and piracy. To make sure that your firm can take advantage of this technology to get ahead of the competition, work with a consultant who specializes in blockchain processes. The consultant can help you analyze the areas that could best be served by blockchain and position your business to be an industry leader.