How Blockchain can change India’s entertainment industry

Digital technologies have played a big role in transforming the way content is produced and distributed in the entertainment industry over the past few years. Despite the many advancements, some challenges remain. The issues of revenue leakages, rights/ license management across locations, censorship and monopolistic distribution practices still exist and, in some cases, have grown.

For instance, the Indian film industry, the world’s largest by a number of films produced, loses close to Rs 18,000 crore in piracy and less than half of the movies produced get a chance to reach the audience.

The existing technology and infrastructure have robbed the music industry as well to the extent of about INR 6500 crore in revenue every year. In 2017, pirated music was downloaded nine billion times.

The few of major hurdles that the Indian entertainment industry currently facing is the 1) Issue of funding and 2) The current distribution model. Many independent artists, actors, studios etc. do not have access to funds to produce quality content. The present distribution model is unfair and dominant.  These small payers never get a fair valuation of their work once production is done. Further, the distribution chain doesn’t offer any transparency in revenue sharing.  

Further, the revenues are declining due to high capital, exorbitant distribution cost, and long value chain. Small and independent artists are finding it difficult to survive in the current eco-system.

The existing technologies have only scratched the surface of these issues individually whereas the Blockchain has the capability to optimize the entire industry. It has the power to establish an ecosystem that can recognize…

- The work of artists,

- Reward them in a fair manner,

- Put them in control of the production and distribution of their work and

- Empower them to showcase their work to their customers without any unwanted filters.

Introduction of Blockchain technology will not only solve the entertainment industry’s existing challenges but also create new possibilities for stakeholders in the value chain. It will bring transparency and sense of trust. Blockchain technology has the potential to eradicate issues that content creators and other stakeholders are facing today. It will also accelerate the content supply chain and will ensure better revenue monetization. 

Here’s how the use of blockchain can fix some of the entertainment industry’ existing challenges:

Revolutionising the current content distribution system

Blockchain will minimize the complexities involved in the current distribution value chain and will make value sets direct, cost-effective and transparent. It will create an opportunity for content creators to bypass the expensive distribution and censorship gateway. The content creators can directly connect with their target audience without any hassle and blockage.

Content Distribution Model: P2P

Current licensing and distribution model is inefficient and extends unwanted support to distributors. Blockchain model ensures distribution of content in a P2P model and makes distribution faster, transparent and efficient. Using this technology, the content owners can distribute their content freely to anybody and anywhere with the complete track of records.

Prevention of Unauthorized Access  

Blockchain technology protects content from cryptography and prevents unauthorized access of content by the user. It also put a trail of events which prevents revenue leakage.

Digital Contract Driven for transparency

Blockchain will lay down complete transparent revenue distribution model in the industry. Presence of this technology will create a transparent trail of revenue flow to all the stakeholders in the value chain. The revenue terms will be pre-agreed and the copy of the agreement will be digitally signed and stored on the platform. This contract will contain pre-agreed terms between stakeholders in the chain.

Content Ownership and Rights management

The ownership of content rights remains with creators of the content. The technology will take care of legal disputes in case of legal disputes in the future.

News business models

Blockchain will bring new business models in the industry that will facilitate other aligning support functions. The new actors can adopt the platform and offer their services, innovation, and creativity to make the industry more holistic and broad.