The adoption of blockchain technology in entertainment brings a heightened level of innovation and transparency to the sector. In addition to transparency, blockchain technology provides security, according to crypto expert Alan Draper, ensuring that parties cannot tamper with records on the public ledger.
The myriad functions and advantages that blockchain brings to entertainment are largely powered by cryptocurrencies, which function as the lifeblood of blockchain networks. These advantages are better promoted by new crypto coins specifically designed not just for general uses like crypto investment but to satisfy use cases in specific entertainment niches, especially with movies and music.
The Appeal of New Crypto Coins
New digital assets offer a novel approach to the film and music industries by supporting enhanced engagement and operations. These assets bring basic functionality transcending traditional use cases by empowering creators and democratizing access to produced material. This creates a more inclusive industry where new and established names can compete on a level playing field. Generally, new crypto coins present the opportunity for technological innovation in entertainment in a way that also rewards individual efforts by decentralizing financial access.
Impact of Crypto on the Film Industry
The introduction of new cryptocurrency coins can impact the film industry in several ways. The following are a few:
- Financing: The need for funds is a major problem suffered by many in the film industry. This is particularly true for newbies with great project ideas but no funds for execution. New cryptocurrencies can revolutionize movie funding, such that investors, fans, or other members of the general public can buy tokens associated with a project for the purpose of funding. These tokens can offer the holders access to content, voting rights, or a percentage of the profits at a set time.
- Distribution of Royalties: Cryptocurrencies can be designed to automate payments via smart contracts. All earnings owed to directors, actors, distributors, and members of the film crew can easily be paid via new crypto coins. Distributing on a blockchain network also increases transparency in the process because all parties can view records and trace paid funds. The blockchain also helps to prevent disputes and significantly reduces administrative costs.
Impact of New Crypto Coins on the Music Industry
The music industry can benefit significantly from new cryptocurrency tokens in the following ways:
- Fan Engagement: New cryptocurrencies support engagement between artists and their fans. These artists can design and issue tokens that help with community building by offering perks that prompt a sense of community. For instance, artists can allow holders to get discounts on concert tickets or early access to ticket purchases. These tokens may also enable fans to vote on decisions such as an album cover, performance set list, featured artists, or the date and location of a performance. Holders may also access exclusive content carefully curated for long-term fans. Several artists, including Kings of Leon, Tory Lanez, and Linkin Park’s Mike Shinoda, have publicly released non-fungible tokens (NFT) representing new tracks or albums, to fans.
- Direct Sales: Special crypto tokens enable direct music sales to interested fans. Direct sales are perfect for artists looking to maximize their income by sidestepping intermediaries like ticketing or distribution companies. These middlemen sometimes charge significant fees that reduce artist income. In addition, intermediaries can sometimes wield enough power to influence an artist’s creative or execution process, leaving the artist with less control over their work.
- Copyright Management: The blockchain provides an efficient platform to store copyright information. Artists, publishers, or record labels can register copyrights on the blockchain to create an immutable record of ownership. This helps other entities needing copyrighted work to quickly find the owners and apply for permission. Blockchain-registered copyrights also ensure that all contributors, including writers, producers, and instrumentalists, are fairly compensated from income generated.
Potential Challenges
While beneficial, the widespread use of new cryptocurrencies and blockchain technology comes with a few challenges. For instance, the complexity required to interact with the blockchain properly could be problematic for many. The technical knowledge raises the entry barrier and somewhat discourages artists and fans who might otherwise be interested in taking advantage of the technology. In addition, changes in regulation could affect the adoption of crypto and NFTs, especially as many authorities are very strict with the possible applications of cryptocurrency tokens. Furthermore, fans and token holders could be discouraged from involvement in the crypto sector because of the volatility in crypto tokens. Fans could buy tokens and see their values plunge significantly in a short time.
Conclusion
New crypto coins can potentially change how artists create and distribute art and how audiences perceive the work. Using blockchain can also help simplify the financing, production, and distribution processes by solving security and transparency problems. However, stakeholders must continuously educate their audiences to reduce the chance that users may be discouraged. In addition, stakeholders must pay close attention to regulations to remain on the right side of the law.
