How Can Blockchain Change The Entertainment Industry

Blockchain technology is lined up to have a lasting positive impact on numerous areas in and around the film and TV industry. In 2021, funding to blockchain startups gained a 713% rise YoY to reach $25.2 billion.

So far blockchain has been utilised to great success as an effective digital ledger for transparency, safety and security. The potential around general efficiency is limitless. The way content is funded, produced, distributed and exhibited is all set to be positively disrupted using blockchain technology.

One way the tech could assist is during the production process. Dealing with crew in different locations and countries could allow for seamless transitions through payments, attribution of milestones reached for production budget drawdowns, and entertainment agreements between production parties.

Another area that the industry has struggled with for years is piracy. Blockchain could be used by tying it to content to not only track but prohibit its usage around the world. Royalty distribution could also be altered for more efficient transactions.

AMC Entertainment also began accepting Bitcoin, Ethereum and Litecoin as a means of payment for concessions and tickets.

Parkpine Capital has recently been investing in entertainment-based crypto projects at series A. One of their founders, Ahmed Shabana recently wrote in an article on Fast Company: “With crypto and blockchain, the movie and entertainment industry is poised to reinvent its business functions, facilitating secure, transparent, and traceable transactions across the market.”

Innovation to the blockchain

Similar to the birth of the internet, we are still very much in the heavy transition period in moving toward blockchain as an industry. Though there has been adoption in certain areas and much is known on the potential, it is still seen as a secondary solution at present time, as more developments are made perspectives on the technology can grow.

Conventional institutions that were once hesitant to take part in the digital revolution are now seeking to integrate Blockchain into their daily operations.

A reported 90 per cent of European and U.S. entertainment companies are currently researching their Blockchain options, several key issues like interoperability, scalability and high transaction fees within existing systems like Bitcoin and Ethereum have stood in the way of these institutions’ full incorporation of the technology.

Sologenic’s third-generation blockchain could have solutions to these issues through its interoperability, allowing for its rapid adoption and paving the way for Coreum’s – and Blockchain’s – mass embracement that could be the start of an increased exponential shift in entertainment.

Where Proof of Work (PoW) Blockchains like Bitcoin and Ethereum incur 600 second block times, merely 5 transactions per second, and soaring levels of energy consumption, Coreum performs up to 7,000 transactions per second, at a speed of 1.5 seconds, while producing 99% less carbon. Energy efficiency has been a tangible and real problem with the technology that is now being solved by alternative sources.

The other element with the tech is that the infamous gas fees issue associated with the industry has been turned on its head. When user demand for transactions is higher, Coreum’s fees decrease in tandem – the opposite of Ethereum’s current methodology. Making it currently more cost-effective for industry adoption.

Similar to how Apple came on top during the growth of the WWW era, we’re seeing a battle for supremacy around best practices and efficiency in the Blockchain era that will affect film, TV, and entertainment for a long time to come.