Just because the blockchain could solve issues in the entertainment industry doesn’t mean it will.
There’s a lot of inertia and tradition to overcome in Hollywood if you’re going to change the way things work. But while 19 Transformers movies technically “work,” they neither advance the craft of filmmaking nor attract a new audience. The Transformers franchise is stale but reliable, so it’s an apt metaphor for the industry’s hesitation to adopt the blockchain.
This technology’s dilemma is the same as a hot art house film making its way around Sundance. It’s new and promising, but you don’t know exactly what to expect. It requires a measure of faith to buy into, but the payoff could be far richer than any mindless blockbuster.
The Transformers mentality casts doubt on the future of blockchain for the entertainment industry. Its potential value is clear, even if its initial forays haven’t been successful. Fear of the unknown limits blockchain’s potential applications, just as it limits the marketing potential of an art house film.
But with time and open-mindedness, blockchain technology could become like Avatar: an entirely novel concept with mainstream appeal and blockbuster-level funding.
Here’s what experts see as the future of blockchain in entertainment.
1. Adrián Garelik, CEO and Co-founder of Flixxo
“Our vision in Flixxo is that blockchain will definitely reshape an industry that is growing and changing at a fast pace, and needs better tools for connecting consumers with the content. Peer-to-peer (P2P) payments and micropayments that remove the need for subscription models will change the way revenues flow, allowing more interactions on a direct-to-consumer fashion.
Transparency and tracking will benefit creators, bringing more content and quality at more affordable prices for consumers, and will redefine the distribution models. Content will reach a brand new branch of consumers — e.g. emerging economies — that will bring more revenues to creators, disincentivizing piracy and building up a virtuous circle.”
2. Marc Urselli, 3-Time Grammy Award Winning Engineer and Producer
“We want to see international standard recording code (ISRC), Gracenote database, all tracking platforms like allmusic.com adopting the technology, but most importantly we want the streaming companies like Spotify and Apple Music to adopt blockchain so the creators can be paid based on actual number of streams and sales.”
3. Chris Richardson, CEO of Linius Technologies
“Monetization, including peer-to-peer transactions and incentives [is the future of blockchain in entertainment]. If you can break video down into data so that it can be transacted inside the blockchain, it also becomes possible for a company or individual to receive micropayments when portions of their IP are sampled or derivative works created. As demand for more granular rights increase, blockchain will be even more vital for proficiency with sales transactions, tracking and reporting, and ultimately to the publisher’s bottom line.
Not will content owners and studios be able to securely distribute video with guaranteed tracking, they'll also be able to better monetize it, with built-in payment gateways and automated royalty payment.”
4. Chris Gale, Co-founder of Verasity
“There is no doubt that blockchain technology will transform the industry in a number of ways. Many projects today will not succeed but the few strong projects will rise and add real business value and solve real problems. A wave of large players in the entertainment space will start adopting blockchain-based technology platforms.”
5. Mike Raab, VP at Sinai Ventures
“The entertainment industry will likely utilize technology solutions involving blockchain technology to distribute and monetize digital content across the web.”
6. Piotr Kocel, CEO of BOMBAY SOUR
“The future is with no doubt very bright, but we always need to think of it in terms of the Gartner hype cycle. I remember writing an article about electronic ink back in 2000, and despite it being such an ingenious innovation we still haven’t seen it go mainstream. Same goes for video conferencing. These things just take time, and with blockchain I expect us to begin our escape from ‘the trough of disillusionment’ in 2020.”
7. Mike Esola, CEO and Founder of Fiction Riot
“Blockchain has the potential to disrupt the entertainment industry and fundamentally alter business models. Despite all the advances made with how we create and consume content, transparency for viewership and compensation remains fuzzy.
Blockchain technology could remedy this lack of insight. Removing as many intermediaries between audiences and creators could be the best way to ensure that the work itself meets both parties’ expectations while making the entertainment industry fairer and more equitable — something that has been sorely lacking.”
Share your feedback and we'll consider adding it to the piece!
Have expert insights to add to this article?
Share your feedback and we'll consider adding it to the piece!ADD YOUR INSIGHTS