Problems in Traditional Streaming Platforms and How blockchain can Fix Them

It is no news that we are now in a digital age. As the years go by, we see improvements in technology. We went from watching movies on DVDs to subscribing to cables, and now we are streaming. Gone are the days when we watched thousands of commercials to enjoy our favorite show.

Streaming platforms are the answer to all of our prayers. However, that also came with some limitations. This article discusses current problems streaming platforms face and how blockchain can help solve them.

Streaming platform Challenges

1. Piracy of content

Live streaming has become one of the most popular ways for media companies to distribute new and old high-quality material to their audiences. Not only is this technique more cost-effective, but it is also available on cellphones, computers, and traditional televisions, allowing users to watch and listen to their favorite movies and music on the move.

However, with the introduction of numerous streaming platforms, entertainment channels are more likely to have their programming captured and unlawfully disseminated, resulting in a revenue loss. Several individuals utilize the ability to screenshot and create screen recordings on their smartphones and computers to capture material on their devices.

2. Concerns about data privacy

Individuals are becoming more security-conscious and skeptical of how entertainment corporations utilize their data to generate content as technology advances; as a result, people are exposing less personal information online. Due to this, there exists a scarcity of information and user data for media companies to create individualized content and analyze digital media consumption patterns.

3. Content Ownership

Content ownership and rights management are other primary issues in the entertainment industry. The inconvenient nature of determining who owns what in audio, video, and written content has resulted in numerous lawsuits and payment disputes. In addition to the costs paid for the video content they’ve licensed, the provider will need to invest in a DRM (Digital rights management) system to keep it from being stolen.

Now that we have identified the challenges, how can blockchain solve some of these issues?

Blockchain-based entertainment solutions

1. Simplified royalty payments

According to CitiGroup, in 2018, there was an unfair profit distribution in the music industry in the U S. Even though there was high spending of more than $43 billion, artists only got about $5 billion, equivalent to 12%. Why? Because they have to go through different channels to get their money. By creating smart contracts that enable sending payments to the artist directly every time people play their song, artists earn more. Blockchain is the only ideal solution for allowing more royalty payments.

2. No need for middlemen

Blockchain-based markets eliminate content aggregation and allow users and producers to connect directly without costly intermediaries. Various middlemen, from streaming platforms to content aggregators, continue complicating the media and entertainment industry, reducing revenue for all parties involved.

With no middlemen, consumers can get the bite-sized, low-value material they want, and content producers can get paid quickly without giving up a part of their revenue. Customers who prefer to make one-time purchases rather than commit to recurrent subscriptions might also be attracted to subscription providers.

Smart contracts in blockchain make settlements more automatic, and consensus procedures to validate data are easy, from viewing content to royalty payments. This means the industry will streamline operations and save money by eliminating costly intermediaries such as collecting bodies.

3. Preventing Fraud and Piracy

In the entertainment industry, content piracy might be worth up to $52 billion in 2022, according to Cointelegraph. Content suppliers and artists worldwide suffer huge losses due to many counterfeit copies of work.

It’s challenging to tackle piracy since there isn’t enough data to explain why people do it. According to copyright research organization CREATe, these factors might include everything from cultural norms to no access to information or ingrained cultural belief that knowledge is worthless.

Blockchain is solving this issue by tracking IP across different channels. Using blockchain, rights to intellectual property can be tracked effectively, and management can access the entire transaction records. Blockchain can be utilized on a small scale for several applications, ranging from content surveillance to forensic watermarking.

Conclusion

The use of blockchain in the entertainment industry is growing. While there is still room for growth in some areas, including piracy, blockchain enables this dynamic business to rearrange itself for a new, more competitive future.

Elimination of middlemen, simplified royalty payments, and fraud prevention are all conceivable with blockchain in the media and entertainment industry while redistributing power to content creators and providing a more customer-centric approach. This allows industrial companies to operate more efficiently, reduce their reliance on middlemen, increase income streams, and develop new business models that provide a competitive edge.