The future of the Internet, and likely the future of the digital media industry, lies in the development ofblockchain technology. For those uninitiated, a basic definition of this technology would be a way of organizing all transactions in the digital currency system. It is often referred to as” decentralized currencies” or” decentralized exchanges”. However, the true potential that theblockchain has for the media industry should not be underestimated. We will explore some of the ways that theblockchain can impact the media industry.
First, we will discuss why Netflix would use theblockchain for its upcoming streaming video service. Netflix uses the UTI (unified transaction order) method for its payment processing. This is a highly efficient and secure payment model for digital rights management and has led to Netflix’s success in the on-demand market. As the UTI system matures, more companies will have the flexibility to transfer funds without the use of third party payment gateways. With Netflix’s large scale transaction history, and the large number of payment card transactions that they have performed in the past, the use of the UTI system makes sense for Netflix.
The second impact of theblockchain is on the entertainment industry value chain. The Netflix example is a great illustration of how a small group of businesses can have a large impact on the value of the overall value chain. The Netflix payment processor eliminates many transaction costs for the content provider. The elimination of transaction costs usually results in lower unit and labor costs. Lowering transaction costs usually increase profitability and lowers the barriers to entry for new entrants to the marketplace.
The third impact of theblockchain is the increased transparency and accountability that come with using the ledger system for digital asset management. By utilizing theblockchain, companies like Netflix are able to maintain greater control over their creative content. When a company can ensure the safekeeping of their intellectual property by usingblockchain technology, they increase the company’s ability to attract and retain high quality talent. Transparency and accountability also lead to higher productivity and a more efficient work force.
The fourth impact that theblockchain has on the media outlets is on distribution. Distributors like Netflix are able to improve their workflow by leveraging the utility of theblockchain. Rather than waiting for media outlet owners to approve their cut of the content before viewing it, theblockchain allows the distributor to determine the validity of the content in real time. This prevents delays that could arise from approval processes. The clarity of the transactions also leads to higher profits and reduced losses.
The fifth impact of theblockchain is on the news media. News media has a unique role in our society. It is necessary for people to have constant access to information. By having blockchaining behind the scenes, news media outlets are able to make more informed decisions about stories and disseminate them more effectively to the public.
The final impact of theblockchain technology is on monetization. Many media companies are now looking towards the utility of theblockchain for revenue generation. A major problem with traditional revenue generation methods is that they create a divide between the creative and commercial sides of the business. Creativity often takes priority when it comes to creating new products and entertainment. Commerciality tends to happen on a more frequent basis, especially with the success of Netflix. Theblockchain allows for a division of labor, meaning that the creative team can focus on new ideas and projects while the commercial team focuses on providing content for sale.
Although theblockchain technology is still in its early stages, there are numerous use cases for the technology that are being discovered. Experts expect the number of potential uses to continue to grow. In the coming years, we may see many applications for theblockchain technology in all sectors of the business economy. Even if some use cases are already in place, the future of theblockchain will be defined by new applications and technologies.