Technology changes have created a huge competition among various platforms of the entertainment industry. Cable TV industry was facing competition from Internet-based video services and streaming services like YouTube, Netflix, Hulu, Amazon instant video etc. But now a new technological innovation, Blockchain, which has created a buzz in the world market, is giving tough competition to the cable industry and also to the associated industries. Blockchain technology has created disruption in the cable industry. Now the pertinent question is whether blockchain technology completely replaces cable TV in future?
The blockchain is simply a distributed ledger, which keeps the various records like cryptocurrency transactions, financial transaction, supply chain information, assets information etc. It is a continuously growing record of transactions (known as blocks).
These transactions in blockchain are secured by cryptography and work on the peer-to-peer network. It is a distributed record of transactions that eliminates the need for any centralized authority for verification.
Whereas cable TV is a system for delivering TV programming via radio frequency and satellites transmitted through cables. With the entry of blockchain in broadcast and entertainment sectors, the cable TV industry is expected to become obsolete in future.
However, blockchain is in its infancy stage but has gained a lot of attention from big companies like Microsoft and other industries including media and entertainment sector. It is now replacing the centralized gatekeeper in cable industry with peer-to-peer network management technique.
Blockchain Vs Cable
The cable industry is based on a centralized distribution of media and content whereas blockchain uses an entirely opposite concept of decentralization. Blockchain technology does not allow the interference of a third party for verification of transactions. Earlier, Cable TV industry was facing challenges only from a few market players viz. Netflix, Hulu, YouTube, etc. But now they have to compete with this new blockchain technology and application platforms based on it. In the cable industry, the content creator has to wait for the approval of their content from a centralized authority, but in case of Blockchain-based applications, the content creator can immediately go live with their content without any approval.
There are many companies like LiveTree, Hubii Network, ALLRites that are emerging with the goal of exploring blockchain technology for the democratization of the content. Cable industry was fighting with Netflix and other streaming application for its survival. But the sudden entry of blockchain technology made this competition tougher, which has increased the pressure on the cable industry.
Impact of Blockchain on Cable TV Industry
The major impact of blockchain technology on the cable TV industry will be with regard to the content distribution. Currently, there are various problems, which both content buyers and sellers are facing in a cable industry. These include-
Problems faced by the content seller are-
-
Distribution fee is significant
-
In the distributor contract, rights are tied up for a long period (2- 5 years).
-
Fluctuation in exchange rates
-
Fast ageing of content which becomes less attractive
-
Bundled selling of rights with other content
Problems faced by content buyers –
-
Verification of rights is delayed
-
Bundled rights
-
The manual and the fragmented process of content discovery
-
Bounded by distributor’s rights options
All these problems can be resolved with a decentralized ledger i.e. by using blockchain-based applications. Blockchain in future has the capacity to generate new opportunities for revenue generation, which cable industry and associated industries cannot achieve in coming years.
Blockchain-based applications will have a greater impact on the cable industry. There are three major categories under which the applicability falls-
-
Processing of transactions and record & data management
-
Payment systems and digital currency
-
Increasing security practices
With the application of blockchain in the cable industry, it is believed that it will transform the customer experience, provide greater security and will reduce the cost of media and content distribution. There are few other ways by which blockchain is expected to disrupt and put an impact on the cable industry. These ways can include- the creation of fully decentralized channels, freeing up content creators, providing free content, paid content, advertising etc.
Technology, with time, is getting advanced and affecting every industry. The blockchain is a new example of new technology, which is gaining popularity and acceptance by different industries due to its decentralized property.
In the cable industry, blockchain is still in its initial stage but with its decentralized feature and peer-to-peer network, it will break the dominance of gatekeepers and other centralized authorities that govern the industry. This procedure may take time, but we cannot deny the fact that blockchain technology has huge potential to decide the future of cable industry by being the foundation for this industry.
The continuous emergence of Blockchain technology in the market has taken the name and fame. This might lead to the improved security and a great benefit to the cable operators.
