Research Summary
This report discusses the potential of blockchain technologies, particularly NFTs, in transforming the media and entertainment industry. Authored by Jon Rogers, a veteran in the media and entertainment sector, the report explores how blockchain can enhance audience engagement, facilitate deal flow, and be utilized in the production process. It also highlights the need for traditional media companies to adapt to these emerging technologies or risk falling behind.
Key Takeaways
Blockchain’s Potential in Media and Entertainment
- Enhancing Audience Engagement: The report suggests that blockchain technologies, especially NFTs, can significantly enhance audience engagement with storytelling. This could mark a shift from passive to interactive entertainment.
- Facilitating Deal Flow: Smart contracts, powered by blockchain, can streamline deal flow in the media and entertainment industry, making transactions more efficient and transparent.
- Utilization in Production Process: Blockchain can be integrated into the filmmaking process, although the report does not delve into specific applications.
Immersive Entertainment and Blockchain
- Significant Business Opportunity: The report cites a Bain & Company article that estimates the traditional media sector can grow its revenue by an additional 20% by embracing immersive platforms enabled by blockchain.
- New Forms of Entertainment: Blockchain can create new media formats by integrating “lean forward” activities directly into the content, enhancing the entertainment experience.
- Urgency to Adapt: The report emphasizes the need for legacy firms to start experimenting with blockchain technology now to avoid falling behind early adopters.
Challenges for Legacy Media Companies
- Organizational Hurdles: Legacy media companies may struggle to adapt due to organizational fear of failure, paralysis from seeing other firms fail, or embarrassment. The report suggests that these companies need to reorganize to put the audience first.
- Franchise Development: The report argues that legacy media companies need to build or enhance a robust franchise engine to succeed in the blockchain era.
- Monetizing Content through Community: The report introduces the concept of “Rogers Maxim,” which states that future media will monetize content through community, making franchises even more valuable.
Actionable Insights
- Embrace Blockchain Technologies: Media and entertainment companies should start experimenting with blockchain technologies, particularly NFTs, to enhance audience engagement and facilitate deal flow.
- Reorganize for Audience-Centric Approach: Legacy media companies need to reorganize their structures to put the audience first and adapt to the changing landscape of the industry.
- Focus on Community-Based Monetization: Companies should explore ways to monetize content through community, as suggested by the “Rogers Maxim.”
