India must revolutionize its digital media industry with blockchain


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India has greater than 65% of ut population under the age of 35, with the typical age nationwide being 29 years outdated. Moreover, out of India’s 1.3 billion folks, solely half at present use cellphones, and fewer than half of this quantity are smartphones.

Despite the fact that India is likely one of the world’s most populated nations, web utilization remains at 41%, with 700 million Indians at present related to the web. This leaves unbelievable room for development in India, which lags behind different rising economies in relation to each web entry and smartphone possession. This massive, underserved inhabitants has lengthy been the goal of worldwide entrepreneurs and mega tech firms.

A $5-billion alternative

In line with a survey, roughly 84% of Indian customers entry the web for leisure functions. In 2019, there was a surge in over-the-top, or OTT, streaming, each audio and video, primarily pushed by unique content material and sport. As an example, the cricket World Cup streamed on OTT platforms.

And there’s additionally the Bollywood impact — a wave of migration of film stars from the large display onto streaming companies. That is an effort to faucet into loyal fan bases and hack adoption. It might even be good enterprise. In line with one report, India’s OTT streaming market is predicted to be valued at $5 billion by 2023.

This market is at present led by the likes of Hotstar (a subsidiary of Disney), which has over 300 million customers. Different huge gamers reminiscent of YouTube, Amazon Prime and Netflix, in addition to home companies, reminiscent of Eros Now, Voot, Zee5, Arre and ALT Balaji, are build up their content material libraries to win market share in India.

On the music streaming aspect, there are quite a few choices. Nevertheless, regardless of this selection, there’s nonetheless criticism over how streaming companies allow the very mannequin that lots of them initially sought to disrupt. Whether or not it was by design or accidentally, these platforms have grow to be the brand new gatekeepers of digital content material and distribution.

Streaming reimagined

Technological revolutions are at all times carried out on the backs of idealists who usually lack political clout however are pushed by a burning need for change. Many variations of this revolution are at present underway. They’re reshaping industries, washing away the muse of legacy enterprise and letting folks construct new and higher programs. But, in relation to digital media, there’s a well-entrenched establishment that continues to be.

Most streaming suppliers at present provide both pay-to-play subscriptions or extractive ad-based programs that aggressively monetize their customers’ consideration. However what if there was a greater option to meet digital content material shoppers’ wants whereas addressing limitations in present media fashions? There’s, and that’s thanks, partly, to expertise, that’s grow to be extra commercially viable in the previous couple of years.

Constructing a brand new basis

Lately, blockchain expertise has emerged as a transformative drive in a number of facets of private and non-private sector operations. Its promise of decentralized possession, immutability and cryptographic information safety has turned various heads.

In India, blockchain use circumstances are getting explored, and the expertise is experiencing demand in banking, insurance coverage, logistics and healthcare. Though it’s largely monetary gamers which can be the primary movers to capitalize on this expertise, others are following. We’ve moved previous the stage the place, in sensible phrases, blockchain was slightly greater than a buzzword. Now the hype has quieted, and extra real-world implementations exist.

Digital content material on the blockchain

A couple of blockchain-connected initiatives have cropped as much as present an alternative choice to the rising hegemony of the streaming platforms. By way of digital content material, the expertise is attention-grabbing from many angles. First, it doubtlessly lessens the ability held by company gatekeepers. It is because, at its core, it permits for the storage and processing of knowledge in a distributed method with out interference from a central physique.

By distributing energy extra equitably, blockchain expertise presents the opportunity of redefining the connection between content material producers, manufacturers and viewers. And that is its most fun promise as a result of in doing so, it alters enterprise fashions and might construct programs with direct participation and advantages for all stakeholders.

New options

A blockchain-powered video-on-demand platform stands to simplify interactions. For content material creators, a main profit is the elimination of middleman companies. On the similar time, prospects can make the most of the pay-per-view mannequin, a big departure from customary subscription fashions. But it surely will also be taken a step additional.

A blockchain-backed VoD platform might be designed to allow customers to derive worth for contributing their consideration, engagement and information to the community. This can be a key improve the place monetary inclusion is anxious. As an alternative of being handled as a commodity, getting charged for entry or being bombarded with adverts, customers will be capable of earn for watching content material and interesting with the neighborhood. These rewards may come within the type of blockchain-based rewards — a profit to customers, in addition to an engine to drive loyalty and development on the platform itself.

Such fashions handle points reminiscent of income dilution for content material creators, copyright issues and — crucial in a rustic like India — financial entry to media. Moreover, in some circumstances, creators should cope with misplaced monetization alternatives as a consequence of distribution inefficiency, non-transparent earnings and unjustified proper attributions — additional points that blockchain’s introduction is poised to resolve.

On the consumer aspect, a system with new, blockchain-based incentives removes the necessity to fear about information privateness in the way in which one may beneath a freemium mannequin. Such a community is trustless and safe by design, using confirmed encryption schemes over a few years. Lastly, whereas centralized companies might be censored, managed and even taken offline, decentralized networks stay censorship-resistant.

Higher incentives

Piracy and unlawful file-sharing is a serious concern for digital content material creators and distributors, and it’s primarily fueled by value limitations. The result’s that producers aren’t correctly compensated, and advertisers looking for a audience get ignored or skipped. Particularly, this can be a downside for manufacturers that crave a extra direct, insight-driven relationship with shoppers.

It’s attainable to resolve these issues by harnessing blockchain’s distinctive traits to extend transparency and disintermediate the connection between shoppers and types. As an example, proof protocols make it attainable to observe utilization precisely and watch charges, ship real-time engagement information, and reward customers for consideration. This undercuts the consumer incentive for piracy and compensates content material homeowners. It additionally creates a extra direct, insight-rich relationship between advertisers and shoppers.

Closing ideas

Whereas the variety of web customers and smartphone homeowners is trending upward, India includes a distinctive confluence of things: a younger, tech-hungry populace and comparatively low penetration charges for digital expertise. Not solely that, however due to the COVID-19 lockdown, India’s month-to-month energetic web consumer base is estimated to develop sooner than anticipated by way of 2021. Over the following 5 years, the variety of customers is projected to be near 1 billion.

The present provision of digital content material in India is rife with issues — centralized energy, poor consumer expertise, fragmented markets, piracy and structural restrictions — that restrict shopper selection. Blockchain expertise offers the spine wanted to revolutionize digital media by enabling improvements to buyer expertise, data-driven engagement and ecosystem economics for the advantage of the neighborhood.

The imaginative and prescient and the expertise are there; what stays is preventing the incumbents and educating shoppers that there’s a greater digital world.

This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer entails threat, and readers ought to conduct their very own analysis when making a choice.

The views, ideas and opinions expressed listed here are the writer’s alone and don’t essentially mirror or characterize the views and opinions of Cointelegraph.

Mario Casiraghi is the chief monetary officer and chief technique officer of Xfinite International, a blockchain-powered international leisure platform. Mario has been enmeshed within the blockchain sector since 2016, first because the founding father of DandYlion and as a associate at Blockchain Resolution Companions. He beforehand labored in conventional finance markets, each at Financial institution of America Merrill Lynch and at RBS.