MIT Sloan Management Review Article on Blockchain Is Changing How Media and Entertainment Companies Compete

Though blockchain technology began as an innovative digital-currency1 tool in the financial sector, all kinds of companies are now experimenting with its core capability as a decentralized and secure ledger to manage digital assets more directly and to rethink how they compete in the marketplace.2 In a recent study, two of us found that more than 1,100 startups were attempting to develop blockchain-based business models in a range of settings, including health care, telecommunications, energy, retail, aviation, real estate, and supply-chain management.3 So far, there has been no significant impact on the respective markets in terms of revenue and market share, but managers’ and investors’ expectations for future returns are high, as indicated by the flow of money into blockchain startups.

In particular, several new business models are emerging in the media and entertainment industries, where monetizing value has been — and continues to be — a significant challenge. Newspapers and magazines, for instance, still struggle to monetize value in the face of plentiful free content and limited mechanisms for protecting intellectual property.