In the digital world, the
convergence of blockchain technology and DTH/OTT services is suggesting a new
age of innovation and disruption. In viewers there is a skyrocketing demand for
high resolution, highly personalised and thus secure content delivery services
and blockchain solutions now appear for the first time, which have the
potential to transform the DTH and OTT world. Nevertheless, due to the progress
of the technology, complex legal aspects emerge that require the interaction of
all stakeholders to ensure compliance, obtain intellectual property protection
and preserve privacy of data.
Due to its decentralization,
transparency and immutability, blockchain technology is producing, across so
many application domains, significate advances in the media and entertainment
industry. Blockchain opens opportunities for entities involved in the DTH and
OTT markets to improve content delivery features, optimize content licensing,
guarantee payment security, and adopt fair revenue sharing schemes between the
content providers and the content creators. The introduction of blocks may lead
to improved visibility, reduced fraud and a general increase in trust amongst
all stakeholders.
Nevertheless, the application of
blockchain for DTH and OTT services has legal issues. The decentralised nature
of blockchain sets it up as a jurisdictional issue as the chains of
transactions and data flow across national boundaries each subject to different
legal frameworks. However, intellectual property protection is much more
challenging in the digital era where there is much more potential to duplicate
and distribute material. Additionally, regulations with respect to the private
nature of data such as General Data Protection Regulation (GDPR) in the
European Union impose stringent boundaries on how one can process personal data
(e.g., which data needs to be obtained, how it must be processed and stored).
In order to optimally harness
blockchain technology, however, as well as take appropriate legal safeguards,
DTH and OTT providers must be responsive to the evolving legal landscape whilst
partnering with legal experts who can break down the block of blockchain. Among
the key problems in achieving the legality of blockchain deployments is
compliance with data protection laws and protection with respect to IP
infringement, as well as the reliability of smart contracts.
With DTH and OTT approaching the
legal blockchain space, this blog will discuss some of the most vexing
legal conundrums, challenges, and opportunities of such a disruptive
technology. Understanding the legal aspects, best practices, and industry
experts will allow us to navigate around the blockchain challenges and develop
a strategy for the delivery of digital content.
Understanding Blockchain in DTH and OTT
What is Blockchain?
Blockchain is a distributed
digital record and order database that holds network transactions in a shared
information framework among a group of computers that is also secured,
transparent and permanent. Each block in the chain provides information about a
series of transactions, and once a block has been written it becomes immutable.
Developed first for cryptocurrencies (e.g., Bitcoin), this technology has been
since extended to and applied in supply chain, healthcare, finance and media.
Blockchain in DTH and OTT
Still in DTH and OTT blockchain
can continue to improve content distribution, rights and payment processes. DTH
and OTT providers, by using blockchain technology, it is possible to introduce
secured and traceable transactions, to safeguard intellectual property and to
improve operations.
Blockchain in DTH and OTT: A Transformative Force
Applications of Blockchain Technology
1. Content Distribution and Rights Management
Blockchain is used to protect the
content from malicious access and provide secure and transparent content
distribution along with copyright protection. Smart contracts can be used to
automatically handle royalty, licensing and distribution agreements between
users.
Example: For
decentralized video coding, the video streaming application, Livepeer, uses
blockchain, which results in cost reduction and ensuring copyright compliance.
2. Subscription and Payment Systems
Blockchain-based payment schemes
encourage micropayments and subscription-based service models, bypassing
intermediaries. Cryptocurrencies or stable coins can be used for seamless
international payments.
Example: Blockchain
enabled content monetization framework, Spheroid Universe, supports
cross-border payment clearing in Over-the-top (OTT) services.
3. Viewer Data Privacy
User data decentralization via
blockchain enhances privacy whilst at the same time reduces the risk of data
breaches.
Example: A game
platform for esports and video entertainment Verasity Inc. uses blockchain to
verify eyeballs and secure records.
4. Combating Piracy
Blockchain timestamps content
origin and flow, making both derivative versions less likely to be
disseminated.
Example: Custos Media Technologies blockchain is used to inject digital watermarks into media
and therefore add provenance.
Legal Implications of Blockchain in DTH and OTT
Despite the combination of
blockchain technology in DTH and OTT brings with it a variety of benefits, the
introduction of blockchain technology in such systems also brings with it
challenges to which legal provisions must be addressed in order to safeguard
the security of existing online content as well as those of the parties
concerned.
1. Intellectual Property Protection
A major legal issue during the
DTH and OTT area is intellectual property (IP) protection. Content providers
and their distributors are required to safeguard the work from piracy and
illegal use. Blockchain technology allows IP protection features to be further
improved by offering a tamper-resistant record of ownership and use rights.
Example: Verifi Media
Verifi Media a blockchain-based
solution, provides an effective end-to-end solution for rights management and
IP protection in media industry. Verifi Media using blockchain provides a 100%
guarantee that the record of all content creation, distribution, and
consumption transactions will be permanently and immutably recorded and
assigned an IP ownership and content usage right log.
2. Smart Contracts and Licensing
Smart contracts, self-executing
self-enforcing contracts in which conditions of the contract are
"hard" coded in the contractual computer program, have potential of
optimizing licensing and distribution agreement in direct-to-home television
(DTH) and over-the-top (OTT) market. These contracts automatically execute and
enforce the terms when predefined conditions are met, reducing the need for
intermediaries and minimizing disputes.
Example: SingularDTV
A blockchain-based excitement
stage called SingularDTV increases substance makers with keen contracts for
gushing stage compliance, licensor oversight, and income part. By leveraging
savvy contracts, SingularDTV ensures that all parties get their reasonable
share of income based on predefined terms, improving straightforwardness and
proficiency within the authorizing prepare.
3. Data Privacy and Security
Digital theft and online theft of
personal information are current issues for DTH and OTT service providers, more
so because of the growing volume of user data accessible. Blockchain technology
can be used to increase security of data by presenting a centralized,
encrypted record of transactions, decreasing the incidents of data leaks and
unauthorized/irrelevant access.
Example: StreamSpace
Having been designed as a
blockchain based, video streaming system, StreamSpace video is endowed with
native blockchain capability in safeguarding user information, and providing
anti-piracy of content. A blockchain's decentralised and encrypted nature is
exploited by StreamSpace to ensure secure storage and access to a user's data
and related user content to the responsible parties only.
4. Compliance with Regulations
The use of blockchain technology
is, however, in the purview of the existing legislation concerning data
privacy, copyright and broadcasting, etc. It is crucial that legal
professionals stay abreast of the changes in legislation and that any such
blockchain implementations do so in such a way as to meet all relevant law and
regulation.
Example: GDPR Compliance
The General Data Protection
Regulation (GDPR) in the European Union is a highly restrictive set of rules
for data protection and privacy. DTH and OTT service providers based on the
blockchain need to ensure that the technical implementation complies with the
GDPR's clauses i.e. user authorisation for purposes of data processing and data
deletion à la carte. Regulatory compliance needs and solutions for blockchain
technologies are desired whilst retaining key benefits such as decentralization
and immutability.
5. Jurisdictional Challenges
The folk idealism of blockchain
technology raises jurisdictional, non-ethical issues, and in particular, the
enforcement of legal contracts and the regulation of disputes. Attorneys should
keep in mind how exercising in contrast jurisdictions can affect the results
and be prepared for the potential issue of conflict of law.
Example: Global Distribution Agreements
DTH and OTT providers often make
international distribution deals with content producers and providers in other
countries. Using blockchain, e.g., can guarantee to providers the transparency
and legally enforceable disclosure of all transactions, i.e. On the other hand,
they also have to deal with the legal aspects of setting up a company in more than
one country and they have to ensure compliance with applicable legal and
regulatory rules.
Worldwide Examples of Blockchain in DTH and OTT
1. Tata Play
As one of the main DTH service
operators in India Tata Play, blockchain has been put into test solution as a
potential framework for content delivery optimization and content rights
management. Tata Play utilizing blockchain technology for providing greater
transparency and security into operation itself, and, consequently, an
equitable, adequate remuneration of the content providers in return for such
effort.
2. Eros Now
The new blockchain innovation has
been recently integrated to Eros Now, next generation OTT platform, for
improving the delivery of content and copyright protection. Through blockchain,
Eros Now guarantees that all steps taken in content creation, content delivery,
and content viewing are recorded and governed in open and safe way by a clear
and secure way.
Opportunities for Legal Innovation
Smart Contracts Legislation:
Regions need to apply for approval in order to legalize and register smart
contracts so as to be put into practice in DTH and OTT services.
Blockchain Governance Models:
Designing governance structures for blockchain networks ensures responsibility
and adherence to regulations.
Global Media Blockchain
Consortiums: International cooperation for standardising the application of
blockchain in media rights management.
Benefits of Blockchain Adoption
For Creators:
- Secure content ownership.
- Automated royalty payments.
For Platforms:
- Reduced operational costs.
- Enhanced consumer trust.
For Consumers:
- Pay-as-you-go models.
- Greater access to authentic content.
Challenges Ahead
- Regulatory Ambiguity: Governments are still drafting policies for blockchain usage.
- High Implementation Costs: Small-scale platforms may struggle with initial investments.
- Technological Gaps: Integration with existing systems remains a hurdle.
The Road Ahead
For blockchain to thrive in DTH
and OTT sectors:
- Clear Regulations: Lawmakers need to define the legal status of blockchain.
- Standardization: Industry-wide standards for blockchain implementation should be established.
- Public Awareness: It is also required to educate stakeholders on the blockchain legal and technical aspects.
In Short
Blockchain technology provides
the platform to disrupt DTH and OTT industries through improved security,
transparency and performance with regards to content provision, rights management
and billing. However, blockchain itself inherently produces complicated legal
issues that need to be adequately addressed for achieving compliance and
safeguarding the legal rights and interests of the parties involved.
Industry players, through familiarising
themselves with the legislation of blockchain in the DTH and OTT market, will
be able to enter legal space, defend their intellectual property rights and
introduce new products and services that lead to growth and innovation.
Development of blockchain technology inexorably leads DTH/OTT by blockchain
technologies to play a central role in defining the future of the DTH/OTT
landscape, opening up new and significant opportunities as well as new and
significant challenges for legal practitioners and legal professionals.
