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Blockchain @ Media

A new Game Changer


for the Media Industry?
Blockchain @ Media | A new Game Changer for the Media Industry?

Content
Introduction 04
What is a Blockchain? 05
Time to change? How blockchain can impact media 08
How it could be done 10
Use Case 1: New pricing options for paid content 12
Use Case 2: Content bypassing aggregators 14
Use Case 3: Distribution of royalty payments 16
Use Case 4: Secure and transparent C2C sales 18
Use Case 5: Consumption of paid content
without boundaries 20
Takeaways for Media Players 21

02
Blockchain @ Media | A new Game Changer for the Media Industry?

Introduction
Blockchain is currently one of the most widely dis-
cussed and hyped technologies. There are only a few
industries that are not either excited or worried about
the concept, as use cases, proof-of-concepts, and fully-
fledged businesses based on blockchain principles are
emerging at an increasing pace. This much is certain:
blockchain has the potential to disrupt existing but also
to enable new business models.

This is particularly true for the media significantly from digitization, since
industries, which have been heavily content can be copied and distributed
affected by the ubiquitous availability and easily and without loss of quality. So far,
the subsequent “commoditization” of the introduction of Digital Rights Manage-
content and been undermined by ment systems has not substantially re-
widespread piracy of intellectual property duced copyright infringements. The
(IP). Today, media users are largely accus- ensuing revenue “leakage” has been
tomed to having free access to a wide only partially recovered through new
variety of content, and most of them are consumption models such as all-you-
still reluctant to pay subscription fees for can-consumer streaming subscriptions
“premium” content behind paywalls. In and micro-payments for articles.
addition, all media segments have suffered

Blockchain-based technologies have the potential


to resolve some of the current challenges:

•• Paid content can receive a boost from •• Copyright infringements and piracy
new, micropayment-based pricing models would be nearly impossible

•• Monetization options emerge for an However, the technology and the mech-
increasingly fragmented content inven- anisms are still young and evolving, and
tory (e.g. blogs, news bites, photos) industry-wide adoption of standards is
•• Allocation of advertising budgets be- most probably still a few years off.
comes more accurate and targeted as
media usage can be directly linked to
the respective content items

03
Blockchain @ Media | A new Game Changer for the Media Industry?

Central Decentral

Figure 1: Central transactions versus decentral transactions

What is a blockchain?
Before going into the industry specifics,
let’s clarify what a blockchain is:

“A blockchain is a digital, immutable, distributed


ledger that chronologically records transactions in
near real time. The prerequisite for each subsequent
transaction to be added to the ledger is the respective
consensus of the network participants (called nodes),
thereby creating a continuous mechanism of control
regarding manipulation, errors, and data quality.”
The first blockchain transaction was crea- without a central authority, thereby increa-
ted by Satoshi Nakamoto in 2009. Originally sing the speed and reducing the costs of
conceived to serve as the underlying tech- transactions.
nology for the cryptocurrency Bitcoin, the
technology offers innumerable further ap- To better understand the underlying pro-
plication areas. Blockchain enables the cesses it is useful to memorize the five
settlement of transactions in a network key characteristics of a blockchain:

04
Blockchain @ Media | A new Game Changer for the Media Industry?

Distributed 1 Digital 2
ledger

Updated near
3 real time

Fewer third Chronological


parties 8 4 and timestamped

Operates‘trustless’ 7

5 sealedCryptographically
Irreversible and 6
auditable

Figure 2: Key characteristics of blockchain

Distributed Consensus-based
Identical copies of all records are shared Participants in the network collectively au-
in the blockchain. Participants can inde- thenticate and approve transactions to the
pendently verify information. Verification blockchain. There are different methods of
processes are not dependent on a centra- reaching the consensus. Generally spea-
lized authority. If one node fails, the king, a majority of network participants has
remaining ones can continue to operate to agree to the transaction’s correctness,
ensuring availability and reliability. and rules can be tailored to circumstances.

Digitized Chronologically updated


Almost any type of information can be ex- The blockchain is permanently timestamped,
pressed in digital format and subsequently each block points to and refers to the data
be referenced through a ledger entry. stored in the previous block in the chain, so
all blocks are linked to each other.

05
Blockchain @ Media | A new Game Changer for the Media Industry?

Cryptographically sealed Ethereum, the second-largest blockchain


Sealed in the chain, blocks can no longer network by market capitalization, was the
be changed: the prevention of deletion, first platform to introduce the concept of
editing, or copying creates true digital a smart contract that could be deployed
assets. and executed in a distributed blockchain
network. The Ethereum protocol is public
These multiplied and decentralized so the terms of each contract can be
blockchain processes lead to a high level of viewed by anyone accessing the Ethereum
robustness and trust. Every participant in blockchain network.
the network has the ability to verify the
correctness of transactions. Network con- Smart contracts enable counterparties
sensus methods and cryptographic tech- to automate transaction tasks that are
nology are used to validate transactions. typically performed manually and that
Thus trust is not established externally by a require the involvement of third-party
central authority or an auditor but intermediaries. Smart contract technology
continuously in the network. Furthermore, can result in processes that are faster and
the decentralized storage in a blockchain is more accurate and cost-efficient.
known to be very failure-resistant. Even in
the event of the failure of a large number of Smart contracts cover a large number of
network participants, the blockchain contractual application areas that can prof-
remains available, eliminating the single it from increased reliability, faster trans-
point of failure. New information stored in a action processing, lower costs, and fewer
blockchain is immutable. Its method of manual process steps via intermediaries.
recordkeeping prevents deletion or reversal Smart Property for the Internet of Things,
of transactions once added to the copyright law, or financial derivatives will
blockchain, once further blocks have been benefit from more efficient processing of
added. legal content, to name a few.

A relatively recent but potentially key The use cases for the media and music
concept especially for media companies is industries discussed below are all built
the concept of “smart contracts”, which are around these unique blockchain charac-
essentially computer code stored in a teristics as enablers for more reliable,
blockchain that can perform actions under tamper-proof, and failure-resistant appli-
specific circumstances. cations.

06
Blockchain @ Media | A new Game Changer for the Media Industry?

Time to change?
How blockchain can impact media

In recent years, a set of heterogeneous ments, payment-focused use cases have


players has become established along the already been proved to work. Parts of the
media value chain: artists as the primary media value chain are therefore already
creators of content, aggregators, and plat- endangered by new blockchain-based
form providers plus (depending on the payment and contract options. These can
country and type of media) a collecting fundamentally reset pricing, advertising,
body handling royalty payments. revenue sharing, and royalty payment
processes.
With the advent of blockchain this industry
structure could change significantly. Block- Payments or advertising revenues no
chain technology permits bypassing con- longer need to be centrally collected. Pay-
tent aggregators, platform providers, and ment transactions become less costly and
royalty collection associations to a large the distribution of revenues is automated,
extent.Thus market power shifts to the based on predefined smart contracts.
copyright owners.
The five illustrative use cases below are
While some applications of blockchain intended to trigger thinking on how power-
technology may still seem farfetched and ful the blockchain concept can be in and
require further technological advance- for media.

Content Content
Production Aggregation Distribution Consumption

Disruption through Blockchain

New pricing options for paid content


Blockchain
Impact

Content bypassing aggregators / distributors

Royalty Payments (Identity)

Monetization of C2C / P2P content sharing

Consumption of paid content without boundaries

Content Brokers
Companies

Content Creators

Aggregators / Platform Providers

Collecting Society / Performance rights org.

Media Value Chain

Figure 3: Blockchain’s primary relevance in the media value chain

07
Blockchain @ Media | A new Game Changer for the Media Industry?

Upcoming Media Opportunities from Blockchain


Focus area

New pricing options Content bypassing Distribution of Monetization of C2C Consumption of paid
for paid content aggregators/distributors Royalty Payments / P2P content sharing content without boundaries

Description
As micro-payments become Blockchain allows everybody Content consumption / C2C / P2P content sharing National / regional limitations
economically efficient and to become a marketer as usage is captured in and usage becomes of paid content subscriptions
digital content is harder to reach of lead generation Blockchain and a precise transparent and monetizable and DRM complexibilities will
copy illegally, new pricing becomes trackable and can consumption-based analysis through the Blockchain be decreased by the
opportunities arise be compensated of playtimes is possible Blockchain

Benefits
• Low-price content (<1€) • Liberalization of • Near real-time allocation • Transparent and • Decreased complexity
can efficiently be settled advertising market of royalty payments “controllable” P2P trans- of rights managment
between seller and buyer • More precise performance • Alternative to actions Automated “real- • Direct linkage of
tracking of advertising imprecise estimates time” billing consump-tion to individual
efforts • Automated “real- / user through Blockchain
time” billing authentication

Figure 4: Blockchain-based Opportunities

08
Blockchain @ Media | A new Game Changer for the Media Industry?

How it could
be done
Having learned about blockchain technology in
general and its particular relevance for the media
industry, our five blockchain-based use cases will
show how changes could soon become reality.
Blockchain @ Media | A new Game Changer for the Media Industry?

„We are at an amazing point in


history for artists. A revolution is
going to happen, and the next year
it’s going to take over. It’s the
ability of artists to have the control
and the say of what they do with
their music at large. The answer to
this is in the blockchain.”
-Imogen Heap, British singer and songwriter

10
Blockchain @ Media | A new Game Changer for the Media Industry?

Use Case #1 –
New pricing options
for paid content

Consumers demand an individual content The subsequent increase in the number


experience – they want to consume of transactions for each usage will also
(video) blogs, pictures, single articles, directly affect the transaction costs in
news bites or short form videos from their current billing systems and models.
preferred sources to complement the Transaction costs made it difficult to
established content portfolio (TV, market low-priced content items or small
Newspapers, Radio etc.), and the success bundles competitively and with a profit.
of music and video streaming services has
even intensified this trend. Blockchain-enabled micro-payments can
help publishers to monetize this flexibility-
Becoming more and more accustomed to seeking group of customers. With the help
“digital” business models, consumers of a blockchain, individual articles or other
expect “per-use” payment models, instead pieces of content could be sold forcent-
of paying a monthly / yearly fee for an prices without disproportionate trans-
online subscription to one particular action costs.
newspaper / (Pay-)TV channel.
Micro-payments boost paid content
The blockchain makes even micro-cent
Benefits payments cost-efficient. Current crypto-
currencies, such as Bitcoin or Ethereum
•• Increased willingness to pay permit transactions as small as fractions
especially younger digital natives of cents. It is thus an enabler for penny-
price content purchases, such as paying
are more willing to pay a few cents
for reading a single news article or strea-
for a music track they favor than to
ming a single song. Also, traditionally
be charged a flat monthly
ad-sponsored content such as YouTube
subscription.
videos can be monetized with an “ad-free”
•• Copyright tracking becomes more alternative for a small fee. Moreover, the
accurate, as does allocation to combination of clearly-defined ownership
media copyright holders and the rights and the ability to track sales permits
subsequent distribution of royalty the launch of totally new pricing models.
payments.
•• Efficiency increases, since Thanks to blockchain, the distribution
costly monitoring of contrac- and monetization of bite-sized content
becomes much more fluid and prevalent.
tual agreements and complex
Blockchains enable copyright owners
distribution of profits are not
to track the usage of their material. It
necessary.
also ensures they receive their fair share
of proceeds calculated and collected
accurately and cost-efficiently.

11
Blockchain @ Media | A new Game Changer for the Media Industry?

Impact on digital content attract new customer segments who are


The blockchain significantly affects the reluctant to purchase relatively expensive
way in which media companies organize subscriptions for access to a broad range
their workforce and payment schemes, of content. Instead, a blockchain-enabled
e.g. articles posted on a news website online news website could charge readers
could be directly linked to their respective for its articles by the article – for a small
authors. This way, profit-sharing could price of only a few cents per read. This way,
permit the featuring of articles not just by ad-free content can be offered to users
well-known columnists, but equally ones who are sensitive about advertising and
by freelancers. Micro-payments permit prefer to pay a small amount of money
new print media pricing models that can instead.

As Is
Publisher User Challenges
Online News

•• Transaction quantity is massive


because a large quantity of
historical data needs to be
Subscription retained at the blockchain
One Month nodes, due to the number
of transactions.

To Be •• Common blockchain standards


Single Articles still need to be agreed on.
Publisher (data off Blockchain,
or Author payment in Blockchain) User •• Initial user registration is in-
evitable. Users have to register
and provide payment details
to activate pay-per-click.

Figure 5: Micro-payments for digital content

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Blockchain @ Media | A new Game Changer for the Media Industry?

Use Case #2 –
Content bypassing
aggregators

Paid content is increasingly gaining traction, monetization cake for the initial creator
but the monetization of online media still of digital content becomes smaller with
heavily depends on advertising. As there is every additional party involved. For emer-
no overall willingness to pay for digital ging media assets such as blogs or user-
content, ad-based distribution models will generated content, the complexity of es-
remain important in the next decade. So far, tablished advertising processes can even
the digital adverting ecosystem is complex generally impede ad-based monetization.
and involves numerous stake-holders.
There are several intermediaries between Blockchain facilitates customer
the content creator and the potential relationships
advertiser. The slice of the Based on the blockchain, everyone from
leading media houses to small bloggers
can easily generate advertising revenues.
As Is
Producer Aggregator As blockchains permit an exact tracking
or Author / Distributor User of content usage, it also enables a di-
sin
Ad
ve

rect allocation of advertising budgets.


rti

Together with new, blockchain-enabled


micro-payments, content creators are
able to establish direct relationships with
their customers. In an extreme scenario,
aggregators could even become obsolete
in the future.
To Be
Producer
or Author User
As soon as artists tie up digital copies of
their songs or videos in a blockchain they
Advertisi

will be able to sell them directly to their


ng

fans without any intermediaries such as


record labels. Moreover, a fair allocation of
revenues from music streaming becomes
possible, whether advertising- or paid con-
tent-based. Artists can market their songs
independently of big platform providers
wherever they want, since a blockchain per-
Figure 6: Direct media customer interaction mits easy tracking of usage and deduction
of the associated payments.
13
Blockchain @ Media | A new Game Changer for the Media Industry?

Shifts of power Aggregators need to reposition


Will aggregators soon become obsolete? Overall, blockchain is a serious game
Probably not, because media consumers changer for the media and digital adver-
still need to discover new content. Further tising industry. CEOs might need to re-
on, the collection and aggregation of position their companies for the new
content will remain an important stage of era. Media business models have to be
the media value chain. However, power in adjusted to new balances of power. With
the media industry will probably shift back fair billing models, aggregators can meet
to the artists, and the dominating role of the requirements of content producers
huge platform providers will decline. The in good time. In this manner they will be
business model of large advertising seen as a fair partner in the blockchain age
networks is also endangered. In a block- too. Smart search and recommendation
chain age, the allocation of advertising functionalities will secure the significance
budgets can be directly measured and of platform providers in the medium term.
billed. The flat marketing of advertising
space will come to an end.

Challenges Benefits
•• Content aggregators and adver- •• Blockchain permits direct custo-
tising networks are likely to lose mer relationships between fans
their dominant market position in and artists.
the media world.
•• Marketing performance and
•• Monetization of content becomes impact become more accurately
more democratic and entry hur- measurable.
dles could vanish.
•• Existing complex media and ad-
vertising ecosystems become
simple and transparent.

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Blockchain @ Media | A new Game Changer for the Media Industry?

Use Case #3 –
Distribution of royalty
payments

Today, the distribution of royalty payments Blockchain permits for trans- form of smart contracts that specify how the
builds on multiple contracts between parent royalty distribution artists are to be compensated and how sales
artists, producers, and music publishing With the help of a blockchain, the distribu-tion proceeds are to be divided among all eligible
houses. For instance whenever a song is of royalties could become more efficient and parties. Preferably, an embedded blockchain-
played on TV, radio, at events or is strea- transparent. This would include a music based mechanism tracks usage on streaming
med online, the rights holders should re- directory with the original digital music file – services, radio stations, tele-vision etc. and
ceive a royalty payment in a contractually associated with all relevant identities of people automatically accumulates credits or
defined split. In order to ensure that this is involved in the content creation. It is also disburses actual payments to the respective
happening, the national copyright col- possible to store instructions in copyright owners.
lection bodies act as a collection platform
for copyright holders and compensate the
eligible parties.
Challenges Benefits
However, contractual complexities can •• Large amounts of historical data to •• Near real-time and exact
complicate the settlement activities, leading be retained at the blockchain allocation and distribution of
to opaque proceeds (“black box”). The nodes due to the number of royalty payments according to
share of royalty payments distributed in this “transactions” (airplays, streams, usage, based on smart contracts -
manner relates to music consump-tion that club-rotations etc.) across all music no more black boxes
cannot (yet) be linked to the rights holder. consumption channels
•• Cost efficiency – no costly tracking
That can be a playlist at a wedding, music
•• Common blockchain platform and monitoring systems for music
played in a store, or music in a YouTube
and interoperable blockchain usage required, as every
video. At the moment, the collecting body
standards need to be agreed consumption / usage will be
gathers airplay statistics and uses that
upon by the many relevant tracked in the blockchain
same relative distribution factor for the
participants
royalties that are not directly associated •• New role of collection asso-
with a rights holder. As a result, the •• The position of a trusted third party ciations – blockchain platform
payments distributed are mere proxies, and might not be granted to collection provider and verification of smart
e.g. lesser-known artists with only a few associations by market participants contract details through
dedicated statistics are potentially not being collection asso-ciations as
compensated with a fair share of royalties trusted third parties
overall.

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Blockchain @ Media | A new Game Changer for the Media Industry?

Opportunities and threats for come obsolete, as blockchain-based smart


collection associations contracts take over the work instead.
Collection associations could use a block-
chain to create a permissioned blockchain To sum up, collection associations must
ecosystem for musical rights. Based on a immediately start thinking about how to
broad consensus amongst the parties adapt their business model and how to es-
As Is involved, the industry bodies would act as tablish attractive permissioned blockchain
Music “gatekeepers” to grant and/or with-draw ecosystems on a global scale.
Artist Publisher Aggregator Distributor User
access to the closed ecosystem. In
addition, collection associations, typically
acting domestically for one or a handful of
countries, could use a blockchain as an
enabler to enter new markets, since estab-
lished measurement and disbursement
mechanisms in use with radio stations,
broadcasters, and other parties which, for
instance, play music commercially, could
become obsolete through the introduction of
To Be smart con-tracts. In a different scenario,
Shared
Artist Blockchain Distributor User blockchain could also become a threat to
traditional collecting bodies. Up to now they
have been ‘chasing’ certain commer-cial
users who “do not pay their bills”, as
exemplified by YouTubers illegally using
copyrighted music in their videos, or roy-alty
dues incurred by an event DJ. With the help
of blockchain, every play of a song is
recognized, counted, with royalties tracked
and allocated to specific users. The role of
Figure 7: Potential change in distribution the collecting body, collecting and dis-
of royalty payments tributing royalty payments, could soon be-

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Blockchain @ Media | A new Game Changer for the Media Industry?

Use Case #4 –
Secure and
transparent C2C sales

Blockchain has the potential for content infringements are nearly impossible. In charged directly with the fee for the specific
rights owners to enable additional reve- addition, the transparency of blockchain content they shared. This permits easy and
nue streams by leveraging consumer-to- enables content owners to “control” peer- legal sharing of paid content among users,
consumer sales. to-peer content distribution and thus to and forms an additional source of revenue
create new business models such as con- for aggregators and copyright holders. The
Thus while the idea of peer-to-peer con- sumer-to-consumer marketing of content. same logic applies to physical copies that
tent sharing is not new, it is and has been For example, now a subscriber can access are shared among consumers, if the physi-
a serious threat to music creatives and their blockchain content and share it with a cal asset is authorized on a blockchain.
movie / TV producers in the past. Peer-to- friend. The subscription holder will then be
peer networks and the respective ex-
change of(media) files is almost impossible
to control due to the sheer number of ex- As Is
changes and of users exchanging files.
Distributor User Friend of User
For example, a subscriber records a show
on DVD which a friend without a subscrip-
Illegal copy
tion is interested in. Giving or selling this
DVD to someone without a subscription is
theoretically illegal but an established
Direct purchase
practice.

Attempts to legalize file exchanges and to


monetize the transactions and contents
have failed, owing to lack of customer
interest and acceptance. Also due to the To Be
success of streaming media, platforms like
Distributor User User’s Blockchain Friend of User
Napster have changed their business mod-
el towards flat fee and all-you-can-eat con-
sumption models for streaming services.

Nevertheless, illegal file sharing still re-


mains a major problem for media com-
panies, while the blockchain has the
potential to solve that problem. With a
blockchain, content owners have full con-
trol and visibility of the consumption and
number of uses of individual songs and /
or movies. Therefore piracy and copyright Figure 8: Secure and traceable C2C / P2P content sharing

17
Blockchain @ Media | A new Game Changer for the Media Industry?

Challenges for Benefits for Benefits for


aggregators content owners consumers
In order to participate in C2C Content owners can fully leverage, •• The blockchain records every
transactions, media aggregators control, and monetize all copy-right usage of a specified content and
(such as (Pay-) TV players and assets that are recorded in the enables real-time and fully
music streaming providers) will still blockchain. In addition, illegal file transparent consump-tion-based
play a role in the marketing of sharing and other copyright pricing mecha-nisms.
contents. Nevertheless, we expect infringements will be impossible, Consumers do not have to pay a
the dynamics of the market to due to the transparency of the monthly up-front fee, instead,
change in the long run due blockchain details through collec- only the actual usage will be
to the “democratizing” effect of tion associations as trusted third billed to consumers.
blockchain. The aggregator role will parties.
•• Due to the very low transac-
shift towards curated discovery
tion costs in the blockchain,
platforms to find new content and will
consumption-based business-
lose their “gate-keeper” role, as
models are also applicable to
monetization and real-time billing will
micropayments.
be available to content owners via
blockchain.

18
Blockchain @ Media | A new Game Changer for the Media Industry?

Use Case #5 –
Consumption of paid
content without boundaries

The last use case deals with a situation that •• In addition, DRM systems are not or since more sophisticated Digital Rights
many subscribers of paid content subscrip- seamlessly integrated between differ-ent Management systems are also capable of
tions (e.g. for pay TV, VoD, streaming ser- countries. Therefore the respective dealing with complexities like multi-country
vices) have witnessed in the past. They subscription rights and packages are not access.
can-not access the contents they accessible in other countries.
subscribed to once they are in another Nevertheless the blockchain has the po-
country / re-gion, for example during Nevertheless players are currently rolling ten-tial to make DRM systems obsolete
business travel or on vacation. out models whereby sub-scriptions and or at least to reduce the complexity of
access to content are not limited to specific these systems, because every
The reasons: countries / regions. But that can only be transaction/ con-sumption is tracked in
attained if the aggregator has acquired the the blockchain and directly linked to a
•• Licenses for content are usually sold rights for all geographic areas and the DRM user. The payment will be automatically
country by country and therefore ac- systems are integrated.The blockchain is initiated according to the underlying
cess from another country / territory not a technical prerequisite for this endeav- smart contract terms for the content.
is prohibited by the licensor.

As Is
Producer Aggregator Challenges Benefits
or Author / Distributor User

•• Transformation from currently- •• Improved customer experience


Countryplatform

installed DRM and billing systems through “seamless” subscription


towards multi-country access and models across different geo-
integration of blockchain graphic areas
functionalities is fraught with
•• Less complex and real-time billing
complexities
To Be •• Transparent and “self-executing”
Producer •• Players could become obsolete as
rights management due to
or Author User aggregators since content owners
underlying smart contracts
will have the ability to market and
sell their intellectual property
directly to consumers
Curated int.
platform

Figure 9: International access to paid content

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Blockchain @ Media | A new Game Changer for the Media Industry?

Takeaways for
Media Players

In a nutshell, blockchain’s potential benefits •• Trust in blockchain technologies To conclude, media players need to con-
for the media industry prima-rily relate to and platforms sider blockchain-based applications and
payment transactions and copyright their potential impact on the whole industry:
•• Opaqueness of blockchain platforms
tracking. Possible applications and micropayment-based pricing options for
and standards due to quickly-changing
technical innovations will have a far- paid content, a shift of market power
market participants
reaching impact: content creators may be caused by content bypassing aggregators,
able to keep a close track of their play- •• Usability and reach of blockchain tech- and an im-proved distribution of royalty
times, royalties and advertising revenues nologies in everyday environments payments, to name just a few.
could be shared in an exact and timely
•• Interoperability of platforms and various
manner based on consumption, and low- To ensure timely and appropriate meas-ures,
standards needs to be secured
cost content could be purchased efficiently, we recommend an immediate review of the
even if priced at mere fractions of cents. In addition, the amount of historical data individual consequences for the existing busi-
stored by blockchain nodes could quickly ness. In addition, companies should lose no
However, there are several fundamental become unwieldy and challenging due to time in identifying applicable blockchain-based
issues and technical obstacles which may a large number of “transactions”. opportunities as a fundamental com-ponent of
undermine the realization of our use cases: their future business strategy.

Key Takeaways to be Considered by Media Players

Micro payment for Enabling a bypass Decrease DRM and


content creators Smart contracts
of aggregators billing complexities

Distributors consider Monetization of low price Reengineer contractual Increase customer experi-
paying artist in smaller content is getting feasible relationships in a smarter ence through multi-country
tranches due to very low transaction and more transparent way access of paid content
costs
If artists market them- Enable immediate Decrease DRM complexity
selves, they charge Allow consumers to trans-actions and
consumers directly choose “ad free” content at automated royalty / Enable real-time
small prices revenue share billing for all
distribution transactions

Figure 10: Takeaways for Media Players

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Blockchain @ Media | A new Game Changer for the Media Industry?

Contacts

Milan Sallaba | Partner Alexander Mogg | Partner

Technology Sector Head Germany Industry Lead TMT

Monitor Deloitte Monitor Deloitte

Tel.: +49 (0)89 29036 7770 Tel.: +49 (0)89 29036 7939

msallaba@deloitte.de amogg@deloitte.de

Mirko René Gramatke | Director

Monitor Deloitte

Tel.: +49 (0)89 29036 7811

mgramatke@deloitte.de

Thanks to further contributing authors:

Ralf Esser | Leiter TMT Research Jens Herrmann Paulsen |


Senior Consultant
Deloitte Consulting
Deloitte Consulting
Tel.: +49 (0)211 8772 4132
Tel.: +49 (0)69 9713 7294
resser@deloitte.de
jpaulsen@deloitte.de

Sven Heinzelmann | Consultant Wanja Giessen | Consultant

Monitor Deloitte Monitor Deloitte

Tel.: +49 (0)40 32080 4480 Tel.: + 49 (0)89 29036 7508

sheinzelmann@deloitte.de wgiessen@deloitte.de

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