Blockchain technology is helpful in many different fields, such as banking, health care, education, retail, and agriculture. Retail giants like Walmart, Unilever, and Carrefour, for example, have already started using blockchain technology to track where their agricultural products come from.
Walmart used to need a week to figure out where their mangoes came from, but after they started using blockchain technology, they only needed two seconds. On the other hand, it could be a lot easier to keep track of student records in the education field, making student transfers more accessible than they are now. Now that blockchain is out of the way, what can blockchain do for the movie business? Let’s take a look.
The Movie Industry Is Going Through Difficult Times
The movie business is going through a rough time. The landscape has changed a lot over the past ten years. About 40% of the money made in the United States comes from Disney movies. At the same time, Netflix is on its way to becoming a significant player in the entertainment industry. During the first quarter of 2021, Netflix had 207.64 million paying members, but its total audience is likely to be well over 300 million people worldwide. In 2020, Netflix made a total of $26.39 billion. This is very different from Paramount Pictures, a company making movies for more than 100 years and is worth $4 billion.
On the other hand, COVID-19 had a terrible effect, cutting the income of the entertainment industry by $81 billion in 2020. At the start of the epidemic, movie theaters and film sets had to close. This caused a massive loss of over $4 billion at the US box office and shocked everyone. Many long-awaited movie projects were put on hold because it was hard to film during a global epidemic. For example, the last James Bond movie, “No Time to Die,” was supposed to come out in April 2020, but it didn’t come out until September 2021 because of many delays.
What the Blockchain Can Do
In the movie industry, which is full of middlemen, uneven profit distribution, changing consumer habits, and many other inefficiencies, blockchain technology is slowly making it easier to cut out the middlemen, making digital rights management more effortless, and creating a more open system for everyone involved (from content producers to advertising).
Blockchain technology has also been used in the media to help make new and exciting business models. This lets the sector adapt to changing customer needs and develop new ways for people to pay based on how much they use. Allowing content creators to get paid in small amounts through automated settlements makes it possible to use a method that is geared toward them.
Clarifying Ownership and Pay
There are a lot of ownership problems in Hollywood, which has been shown by the many fights between producers, directors, studios, and actors over the years. When information about who worked on a movie or TV show is put into a blockchain, it can’t be changed. This makes it easy to see everyone’s contributions to a project. Because of this, once a script has been registered on a blockchain, no one else can use it.
So, it’s easy to show who owns something, and corruption can be avoided. Also, Hollywood has had problems with contracts for a long time. This usually happens between studios and actors. The actors say that their contracts have been broken because the studio’s financial incentives turned out to be fake. Smart contracts might be able to help solve these problems. With smart contracts, agreements can be automatically carried out, making everything clear and impossible for the information to be changed.
Smart contracts, which consider conditions that have already been agreed upon and depend on meeting specific criteria, can automate payments and make carrying out a contract more efficient.
Piracy Could Be Reduced by Using This Technology
The film industry loses a lot of money to piracy, which is popular in China and Russia, two of the biggest markets in the world. But it is also becoming more popular around the world. In this case, producers could use blockchain technology to determine who has the right to see the content and make sure that movies are used fairly. Instead, some experts say that legal movie watching can be rewarded with unique tokens that let people watch premium movies or TV shows at a reasonable price. All of this is done to encourage internet users to stream legally.
Voting systems that use tokens can be a good way for supporters or fans to voice their opinions. The approach has also been known to significantly affect movies like Deadpool and Sonic the Hedgehog, where some parts were only added because fans pushed for them. Here, fans can vote without worrying about fraud since each vote is recorded with a unique token that can’t be used to cheat.
Blockchains bring security to an area that isn’t usually associated with them. This gives people of different ages, genders, socioeconomic backgrounds, and nationalities more options.
Even though Hollywood’s hierarchy has been set for years, blockchain technology may be able to shake things up by replacing the industry giants’ monopoly with transparency, equality, and opportunities. Hollywood may move into a new age of filmmaking by making contracts more transparent, reducing investment and restrictions, and clarifying who owns the movies and how much money they will make.