Blockchain in Media- Effective Content Management

Blockchain in Media- Effective Content Management

In recent years, a set of heterogeneous players has become established along the media value chain: artists as the primary creators of content, aggregators, and platform providers plus (depending on the country and type of media) a collecting body handling royalty payments. In the media value chain, content management is basically the content management bypassing through aggregators and distributors. Blockchain allows everybody to become a marketer as reach of lead generation becomes trackable and can be compensated.

With the advent of blockchain this industry structure could change significantly. Blockchain technology permits bypassing content aggregators, platform providers, and royalty collection associations to a large extent. Thus market power shifts to the copyright owners.

While some applications of blockchain technology may still seem farfetched and require further technological advancements, payment focused use cases have already been proved to work. Parts of the media value chain are therefore already endangered by new blockchain-based content management applications.

Benefits:

  • Liberalization of advertising market
  • More precise performance tracking of advertising efforts

Blockchain facilitates customer relationships

Based on the blockchain, everyone from leading media houses to small influencers can easily generate advertising revenues. As blockchains permit an exact tracking of content usage, it also enables a direct allocation of advertising budgets. Together with new, blockchain-enabled micro-payments, content creators are able to establish direct relationships with their customers.

Example: As artists tie up digital copies of their songs or videos in a blockchain they will be able to sell them directly to their fans without any intermediaries such as record labels. Moreover, a fair allocation of revenues from music streaming becomes possible, whether advertising or paid content-based. Artists can market their songs independently of big platform providers wherever they want, since a blockchain permits easy tracking of usage and deduction of the associated payments.

(Media Value Chain with Blockchain)

Some of the content management blockchain apps are:

  1. Steem
  2. Sapien
  3. Indorse
  4. PROPS Project

Blockchain acts as an enabler of such a platform play because, unlike the current dominant platforms, it provides transparency, data privacy and trust across the ecosystem: the different parties involved in the platform (advertisers, agencies, ad tech providers, publishers) have access to relevant and certified data. Without blockchains, they are reluctant to share this data for fear of ceding competitive advantage or revealing high-value audiences. 

Blockchain offers the ability to encrypt data that machines can see and optimize across, while contributors have access only to what they are permitted to view. Personally identifiable information, such as an IP address, can be masked. The result is that a broad ecosystem of advertisers, publishers and second- and third-party data contributors have gained the performance outcomes of a walled garden without the need to share data that could be used to poach customers. This approach could provide the performance outside the control of dominant intermediaries, which currently impose both burdens and control in exchange for that performance.

The modularity provided by blockchain applications enables various aspects of Media companies’ operations to be streamlined, which helps make them more cost-efficient and faster, as well as more reliable, scalable and transparent.