Blockchain In Media, Advertising And Entertainment Market To Hit USD 152 Bn

Tajammul Pangarkar
Tajammul Pangarkar

Updated · Jun 6, 2024

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Introduction

The global blockchain in media, advertising, and entertainment market is growing rapidly due to the need for improved transparency, security, and efficiency in these industries. The market size is projected to increase from USD 1.3 billion in 2023 to around USD 152.1 billion by 2033, indicating a remarkable compound annual growth rate (CAGR) of 61% during the forecast period.

Several factors are driving this growth. These include the increasing demand to remove intermediaries between content creators and end-users, the growing need for secure and faster transactions, and the rising incidents of data piracy. For example, blockchain technology enables bypassing traditional content aggregators and royalty collection agencies, allowing copyright owners to have greater control over and profits from their creations.

In recent developments, the blockchain in media, advertising, and entertainment sector has seen significant mergers, acquisitions, and funding activities aimed at expanding technological capabilities and market reach. In October 2022, Binance entered into a strategic cooperation with YG Entertainment to explore blockchain projects, including NFTs and the Metaverse, enhancing their digital asset offerings and customer engagement platforms. Additionally, in September 2022, Chain secured a multi-year sponsorship deal with Kraft Sports + Entertainment, integrating advanced Web3 experiences into major sports events such as those of the New England Patriots and Revolution.

Another notable development is the acquisition of MGM by Amazon, aiming to strengthen its entertainment division with a vast intellectual property library and increased content production capabilities. This move reflects a broader trend of media giants leveraging M&A to become comprehensive entertainment hubs. Similarly, WarnerMedia’s merger with Discovery expanded their direct-to-consumer base and content library, positioning them strongly in the competitive streaming market.

These strategic moves underscore the industry’s drive to integrate blockchain technology to enhance interactivity, streamline operations, and secure digital assets, positioning companies for future growth in a rapidly evolving digital landscape.

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Key Takeaways

  • The Global Blockchain In Media, Advertising, and Entertainment Market is projected to reach a substantial value of USD 152.1 billion by 2033, showing a robust CAGR of 61% over the forecast period from 2024 to 2033.
  • In 2023 alone, the market was valued at USD 1.3 billion, indicating the significant growth potential of blockchain technology in these industries.
  • Private blockchains are leading the market, capturing over 52.2% of the market share in 2023. This is attributed to their enhanced security features and controlled accessibility, crucial for handling sensitive data and intellectual property.
  • Large enterprises hold a dominant position in the blockchain in media, advertising, and entertainment sectors, with over 58% market share in 2023. These organizations have the resources to invest in advanced technologies like blockchain and pioneer its integration into their business processes.
  • Payments emerge as a prominent segment within the blockchain in media, advertising, and entertainment industries, capturing more than a 36.2% market share in 2023. Blockchain technology revolutionizes the payments process by offering unparalleled transparency, security, and efficiency.
  • North America leads the global blockchain in media, advertising, and entertainment market, capturing over 39.5% market share in 2023. This is attributed to the region’s robust technological infrastructure, early adoption of digital innovations, and strong regulatory framework.
  • The market for Generative AI within the Media and Entertainment sector is expected to achieve a valuation of approximately USD 11,570.0 million by 2033, growing at a rate of 26.3% CAGR through the forecast period.

Blockchain In Media, Advertising and Entertainment Statistics

  • According to Accenture research, 55% of executives in the entertainment sector consider blockchain technology a top priority for their companies, indicating strong demand for blockchain solutions.
  • Over the next three years, executives’ interest in blockchain technology is projected to increase by 83%, highlighting a growing trend towards adoption and investment in blockchain within the media, advertising, and entertainment sectors.
  • Blockchain adoption is particularly notable in the Asia-Pacific region, where expanding blockchain innovation and increasing internet penetration contribute to significant market growth in media, advertising, and entertainment.
  • A key benefit of blockchain technology in the media, advertising, and entertainment market is the elimination of intermediaries. It offers real-time consumption-based pricing against assets with immutable records and digital identities.
  • Blockchain technology enhances security and transaction speed in the media and entertainment sectors, reducing transaction costs by 40-80% and administrative costs while increasing transparency in royalty payments and digital supply chain verification.
  • The blockchain-based music and entertainment division launched by The Bitfury Group in January 2019 exemplifies industry players’ efforts to leverage blockchain for innovative solutions, fostering collaboration and innovation within the market.
  • The US film and TV industry suffers an estimated annual loss of $71 billion due to digital piracy and IP infringement.
  • Despite a record-high spending of $43 billion in the US music industry, artists only take home about $5 billion annually, indicating a significant gap in revenue distribution.
  • Blockchain technology enables real-time tracking of content usage, facilitating flexible and transparent consumption-based pricing models.
  • The disintermediation potential of blockchain in media and entertainment is evident, with intermediaries currently consuming a large portion of industry revenue.
  • On-demand streaming services such as YouTube and Spotify act as intermediaries, resulting in only a small fraction of revenue reaching artists.
  • Smart contracts on blockchain platforms automate royalty payments to artists upon content usage, streamlining the payment process and ensuring fair compensation.
  • Blockchain-based marketplaces for digital content eliminate costly intermediaries, allowing creators to sell their work directly to consumers.
  • Blockchain technology presents an opportunity for pay-per-use consumption-based models in media, offering customers more flexible pricing options.
  • ConsenSys NFT offers a platform for creating and managing digital collectibles, providing unique experiences for fans and creators alike.
  • By leveraging blockchain technology, media companies can streamline supply chain management processes, leading to improved efficiency and transparency.
  • Blockchain-based content sharing and peer-to-peer commerce platforms offer artists and creators additional revenue streams by automating the selling process of essays, artworks, or recordings.
  • Blockchain technology enables secure and transparent copyright protection, ensuring that intellectual property rights are safeguarded and royalties are distributed fairly.
  • Companies like NYIAX, TaTaTu, SingularDTV, BlockPool, and Civic are implementing blockchain solutions in media, advertising, and entertainment to enhance transparency, efficiency, and security.
  • Advertising fraud amounted to a staggering $23 billion in 2019, highlighting the significant financial impact of fraudulent activities in the industry.
  • The COVID-19 pandemic influenced changes in media consumption habits, leading to a surge in subscriptions to paid streaming services, followed by cancellations, indicating a dynamic and competitive market environment.
  • Citigroup’s examination of profit distribution in the music industry underscores the challenges posed by intermediaries, who often take a significant share of revenues, leaving artists with a smaller portion.
  • Deloitte’s research reveals insights into changing consumer behaviors, showing shifts in subscription patterns and preferences that have led to increased competition among media service providers.
  • Blockchain technology is increasingly being adopted to streamline royalty payments in the music industry. By eliminating intermediaries and deploying smart contracts, it enables a fairer distribution of profits to artists.

Recent Developments

  • Taboo secured a significant funding round of USD 10 million in May 2023, aimed at expanding its global presence and improving its content production and distribution approach.
  • Binance and YG Entertainment formed a strategic partnership in October 2022 to explore blockchain projects, including NFTs and the Metaverse, which involves creating games and other digital asset opportunities.
  • Chain and Kraft Sports + Entertainment signed a multi-year sponsorship deal in September 2022 to integrate advanced Web3 experiences into major sports events, enhancing engagement through blockchain technology.
  • In August 2022, Shemaroo partnered with blockchain startup Seracle to strengthen its Web 3.0 market position. The partnership focused on better user experiences and improved connections.
  • BlueSnap collaborated with BitPay in October 2022 to enable businesses to accept payments in up to 15 different cryptocurrencies and seven fiat currencies globally. Through blockchain solutions, BlueSnap aims to reduce costs and increase revenue.
  • In November 2023, Austin-based fintech firm Oveit partnered with Swiss startup Utrust to introduce new cryptocurrency payment mechanisms for the entertainment industry. These mechanisms will allow event planners to accept and use crypto payments easily.

Use Cases

  • Streamlined Royalty Payments: Blockchain technology simplifies royalty payments by using smart contracts that automatically release payments to artists when their content is used. This system ensures that artists receive fair compensation without delays or unnecessary intermediaries. In the US music industry, where artists only receive about 12% of the total revenue, blockchain can significantly improve profit distribution.
  • Micropayments and Usage-Based Payment Models: Blockchain enables micropayments, allowing consumers to pay only for the content they consume. This is particularly useful for accessing individual songs, videos, or articles, ensuring that creators are directly compensated. This model is becoming more popular as consumers increasingly prefer pay-per-use over subscription models.
  • Immutable Advertising Engagement Metrics: Blockchain can provide verifiable and immutable metrics for advertising campaigns, reducing ad fraud, which cost the industry $23 billion in 2019. By ensuring accurate tracking of ad engagements, advertisers can better allocate their budgets and achieve a higher return on investment.
  • Disintermediation: Blockchain removes the need for intermediaries in content distribution, allowing creators to interact directly with consumers. This reduces costs and increases revenue for creators. For example, blockchain-based marketplaces enable direct sales of digital content, eliminating the need for platforms that take a cut of the profits.
  • Fraud and Piracy Prevention: Blockchain’s immutable ledger helps combat digital piracy and protect intellectual property rights. By creating a transparent and secure record of content ownership and usage, blockchain can significantly reduce the $71 billion annual loss due to digital piracy in the US film and TV industry.
  • Peer-to-Peer Transactions: Blockchain facilitates peer-to-peer sales and content distribution, allowing artists to manage licensing, contracts, and payments efficiently. This reduces reliance on traditional intermediaries and ensures that creators retain more control and profits from their work.
  • Enhanced Security and Privacy: Blockchain provides robust security for digital assets and personal data, making it an ideal solution for managing content rights and protecting against unauthorized access. This is crucial for maintaining the integrity of high-value digital assets in the media and entertainment industries.

Conclusion

In conclusion, the blockchain in media, advertising, and entertainment market is poised for substantial growth, driven by its potential to streamline operations, enhance security, and create new revenue streams. Despite challenges, the market’s trajectory remains positive, with significant opportunities for stakeholders to harness the benefits of blockchain technology.

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Tajammul Pangarkar

Tajammul Pangarkar

Tajammul Pangarkar is a CMO at Prudour Pvt Ltd. Tajammul longstanding experience in the fields of mobile technology and industry research is often reflected in his insightful body of work. His interest lies in understanding tech trends, dissecting mobile applications, and raising general awareness of technical know-how. He frequently contributes to numerous industry-specific magazines and forums. When he’s not ruminating about various happenings in the tech world, he can usually be found indulging in his next favorite interest - table tennis.