If dynamic is the word, crypto and entertainment are its synonyms. There are rarely any markets or industries that are as dynamic as the crypto market and the entertainment industry. New platforms, more users, technological advancements are a daily occurrence in these two spaces. While the crypto market is finding its feet, the entertainment industry is facing an uncommon concern of oversaturation.
For a solution, they need not look elsewhere. The crypto market needs genuine application of its enormous potential to mature as a financial ecosystem. The injection of value and utility into the currencies is a foolproof way to get rid of the market’s infamous best friend – volatility. But, the solution for the entertainment industry is not as straightforward.
The Need for a Stable Fulcrum to Revolve Around
Today, the global entertainment industry is valued at a couple of trillion U.S. dollars. Also, the volume of content consumption has increased by a fair margin reflecting the growth of the market. But, two important parties, the creators and the end consumers are being neglected. By centralizing the authority in the hands of labels and few corporations, the entertainment industry is gasping for breath.
As a frame of reference, Hollywood and its penchant for raking in big dollars are well known and documented. But, at the grassroots level, Hollywood is allegedly controlled and operated by five or six major studios. And recently, a handful of streaming devices have gained leverage too. This spells doom to the industry as exclusive control is never desirable for the market. Contrarily in the crypto market, any unknown token can compete with bitcoin if it holds value for the end-users.
Currently, there is minimal incentive to produce movies that are audience-oriented. Given the huge dollars involved, the creative minds behind the movies need to cater to the studios’ preferences. This kills the basic essence of the entertainment industry.
Similarly, corporations in the social media space have established enough authorities to control the game of content creation. Indie music producers and movie directors have negligible opportunities and financial backing to create content. Also, there exists the scare of IP theft and corruption by the ‘labels’ and ‘distributors’.
In Blockchain Lies the Answer
Imagine the incorporation of blockchain technology into the process of content creation. Then, the content creators can wield absolute ownership over their content as they are protected by blockchain’s immutable nature. To relieve themselves of financial burden, creators can tokenize their project and use ICO-like initiatives to raise funds for their projects.
This also allows the end-users to have a substantial say in the content they consume. Since blockchain neutralizes centralized powers, creators and music producers are at liberty to produce content without having to worry about any authorities.
Right now, the entertainment industry, especially the music market, is plagued by piracy concerns. The monetary value of piracy and counterfeiting amounts to several billion dollars. This can be combated using blockchain technology as it is extremely difficult to manipulate the digital ledger. Furthermore, the growth of non-fungible tokens (NFTs) is a bonus as it can be used to digitally protect the original content.
The term ‘Techtainment’ (technology + entertainment) embodies what the future holds for the entertainment industry. Embracing blockchain and its inherent transparency is a much-needed elixir for its growth and evolution. Also, cryptocurrency can unlock several avenues of financial backing for indie artists and producers.
Entertainment Industry Needs to Prioritize Its End Users
Currently, there is no concrete window for fans to voice out their opinions about the content being fed to them. Despite the growth of social media, there is no credible platform for the audience to put forth their views and feedback. Since a few conglomerates control the process of content distribution, there is a growing need for fans and artists to be at the core of the industry.
Blockchain and crypto can democratize the way the audience interacts with artists and creators. There is no centralized authority to control the voice, thereby allowing free flow of communication. Blockchain tech also allows for a transparent voting mechanism where users can vote for features like the genre or concept of a song or a movie.
To further credibility, cryptocurrencies can be used as a token of authenticity in the voting process. This also ensures the users, with their tokens at stake, are accountable and responsible while voting.
There’s No Alternative
The entertainment industry, to date, has been deaf to the voice of its users. Now is a time where end users are facing content overload. Hence, their feedback is paramount for creators to improvise upon and produce quality content.
Leveraging the transparency of blockchain tech and the accessibility of crypto, entertainment needs to evolve into a user-centric industry. This move decouples the industry from its overt commercialization. Giving the fans and artists the right to directly engage in production is a step in the right direction for the industry as a whole.
Author Bio – Ross Lee is the CEO of MiraQle, a platform for fan driven music experience disrupting the market by leveling the playing field.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.