Blockchain technology is on the path to revolutionize and redefine many sectors with the best possible offerings. Knowing the fact that 83 % of executives are planning to go ahead with increasing investments in blockchain in the next three years, it is quite evident that blockchain will play a major role in changing industry structure as well. The media and entertainment industry are having high requirements for this technology due to some major key factors driving the market. The encryption feature of Blockchain makes it secure and the transactions are done instantly and transparently, as the ledger is updated automatically. Moreover, the authenticity of a transaction is verified and confirmed by participants. Blockchain is a decentralized system, no intermediary fee is required.
The rapid growth of Blockchain technology is showing no signs of slowing down. As a Fact; Blockchain services in the field of advertisement, media, and entertainment industry were valued at 166.6 million USD in 2020. It is expected to reach higher approx. 4371.31 million USD by 2026. Between the forecasting periods of 2021-2026, the expected CAGR would be 71.4%.
Block chain is disrupting not only the existing business models but is also enabling the development of new business models, especially in the media industry. Highlighting the offerings of this technology, it permits bypassing content aggregators, platform providers, and royalty collection associations to a large extent which makes market power shift to the copyright owners. Accenture has also mentioned that 55% of media and platform executives think that blockchain is a top-five priority for their company. But the fact that implementing new technology like Blockchain would be costly and time-consuming for many, the potential of this technology to increases profits has yet to be understood to make it worth the investment.
Blockchain helps to reduce transaction costs by 40%-80% by providing real-time consumption-based pricing against assets. Pay-per-use consumption is expedient now due to the blockchain-powered micropayments. Also, this technology can keep an absolute record of data and hence making it easily trackable. A start-up likes Dish Network; the content providers are using Blockchain to accept payments through bitcoin. Looking at the market trend and offerings of technology, payment applications are mostly expected to dominate in the market.
Talking about the global market, North America and Canada are seen to be adopting advanced technologies at an early stage. North America has increased its investments in the blockchain in the media, advertising, and entertainment industry. Canada is also seen taking the initiative of Toronto’s Blockchain Research Institute (BRI), Montreal’s Blockhouse, and Vancouver’s BC Blockchain Forum. Such initiative is bringing ahead companies like IBM, Accenture, and start-ups to build a strong foundation.
As of now, there are very few players offering blockchain thus the competitive landscape in the media, advertising, and entertainment industry is relatively low. However, the initiative by EY and Microsoft to launch a blockchain solution for content rights and royalties management and Bit fury Group to launch a platform secured by the bitcoin blockchain will eventually help Blockchain to attain its value in the global market soon.
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