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Confidential. © 2017 IHS MarkitTM. All Rights Reserved.Confidential. © 2017 IHS MarkitTM. All Rights Reserved.
How Blockchain Democratises Media Industry
Ruomeng Wang
Senior Analyst, Consumer Platforms & Fintech
Confidential. © 2017 IHS MarkitTM. All Rights Reserved.
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What is blockchain?
Confidential. © 2017 IHS MarkitTM. All Rights Reserved.
What is blockchain?
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Blockchain or Distributed Ledger
Technology [DLT] is:
Essentially a decentralised ledger or store of
records that enables the transaction and
execution of smart contracts and decentralized
applications.
Blockchain is not:
Bitcoin or cryptocurrency – these are assets
that serve decentralised applications and
which are traded using blockchain technology
Blockchain records are designed to
be:
▪ Secure
▪ Transparent
▪ Immutable [as possible]
▪ Decentralised
Blockchains can be:
▪ Public/ permission less – anybody
can participate e.g. Bitcoin, Ethereum
▪ Private/ permissioned - serving a
company or group specific need
▪ Hybrid
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Blockchain use cases for various industries
03
04
Payment authorisation, clearing and settlement
Roaming, 5G Enablement, IoT, digital asset
transactions
Media content management, the safe allocation
of rewards and payments
Patient records, medical implants and drugs
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Parts tracking, allowing recall notices to be issued more
efficiently
Arm parts management/tracking. E.g. ITAR
01
02
Health & Medical
Media Platforms
Financial ServicesDefense
AutomotiveTelecom
Operators
06 01
02
0304
05Blockchain
use cases
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How can media companies play a role?
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What so good about blockchain?
Distributed ledger
Transparent
Immutable
ChronologicSecure
Less third parties
Real-time update
Decentralised
Tracible
Automated
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How blockchain could start to make waves in media
Content
Production01Content
Aggregators02 Distribution03 Consumption04
Royalties ICO Bypassing
aggregatorsConsumption &
Distribution
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Royalties:
Blockchain to reduce contractual complexities for royalty payment mechanism
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Spotify: Acquired US-based blockchain music
database and payments platform Mediachain Labs in
2017, to develop blockchain-based solution to
connect artists and other rights holders.
Open Music Initiative (OMI): Developed blockchain-
based royalty payment mechanisms. It composed of 200
members including Sony, Music, and Warner, as well as
YouTube, Netflix, Spotify.
Existing model
Blockchain
Artists
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ICO:
Media companies can use ICO to crowdfund new ventures
Benefits/risks of ICO:
• Wider accessibility:
Anyone in any region or country can participate with less restrictions.
• Return on investment:
Participants of ICO treat this as an investment in a start-up’s vison. In
return, the company gives tokens to investors, which can be traded
for their value or hold until the company becomes more successful.
• Regulations:
Regulations is not mature on ICO, different countries have different
regulations.
• Risks:
• The risks in ICO is potentially higher as most investors are
expecting profits.
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Blockchain-based
media ecosystem
ICO Platform
Blockchain-based
streaming platform
Allows TV and film
producer to raise
funding with both
ICO and traditional
currency.
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Content bypassing aggregators:
Will allow publishers to target and personalise content more efficiently
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Existing model
Content
creators
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Consumption & distribution
Reduce piracy problems and create new business model for P2P/C2C sales
However, blockchain has potential to reduce piracy by enabling real-time and automated micro-payments. Which indicates content owners
can fully monitor usage of the content and charge users directly when they share. This will add more revenue sources for copyright holders.
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SubscriberContent creator/distributor Friends
Free: Illegal copies sharing
P2P sharing charge
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Blockchain challenges and strategies
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Despite its clear promise, blockchain technology is not a panacea
– existing solutions may still be best
Immutability Smart contract Speed issues Private or public
But… But… But… But…
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Key takeaways for media players
01
02
03
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Blockchain to shift power to content creators and allow them to
directly engage with customers
Real-time billing through smart contract to increase efficiency of
royalty payments and reduce complicity DRM, meanwhile enable
low price content monitisation to fight with parity
Aggregators need to consider how they can adapt new tech
to reposition themselves. E.g. pay-tv, music streaming
platforms might lose their gate-keeper position…
ICO to provide media start-ups more options to raise funds
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Thanks
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Ruomeng Wang
Senior Analyst, Consumer Platforms & Fintech
IHS Markit Customer Care
Americas: +1 800 IHS CARE (+1 800 447 2273)
Europe, Middle East, and Africa: +44 (0) 1344 328 300
Asia and the Pacific Rim: +604 291 3600
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