The Role of Blockchain in Securing OTT Content

Although blockchain technology has mostly been linked to cryptocurrencies, it has the potential to transform many other industries, including OTT content. Using a blockchain gives companies a transparent ledger of transactions that can automate other processes. Within the OTT space, several innovators are looking to implement blockchain to secure content and improve the OTT experience for both viewers and content creators.

The Role of Blockchain in Securing OTT Content

Blockchain Provides Security and Transparency

To understand how blockchain can improve OTT content delivery, it helps to understand how blockchain works. A blockchain is essentially a never-ending record of transactions. Computer systems can then be programmed to read the record and take action. An OTT blockchain could create an entry in the record every time a video is accessed by a user, for example. Users can have unique IDs on the blockchain, much like how each cryptocurrency wallet has a unique address.

Another major advantage of blockchain is that it is decentralized. Users can even keep a copy of the record on their local computer. This can help defend OTT platforms from piracy and remove some of the annoying restrictions that users have to deal with.

Protecting Against Piracy

Most online content uses digital rights management, or DRM, for security. While this system has worked well for decades, it's overdue for an update. DRM relies on centralized content distribution networks, which means that if the content distributor has a technical issue, everyone can lose access. A mistake in a code patch could shut down the whole service. This actually happened to Netflix during the holiday season in 2023.

With a decentralized blockchain, viewers could still access videos without the need for central servers to check DRM. The rules for video access are embedded into the blockchain, which can be copied and read from anywhere. At the same time, piracy is minimized, as the blockchain can readily detect multiple logins or unwanted password sharing.

Improving the End-User Experience

Frequent fliers and business travelers find it frustrating when content isn't available in another region due to DRM restrictions. DRM checks the IP address of the user when they connect and only allows them to see content available in that region. In contrast, a blockchain could record the region the user's account is tied to. Even if they travel to another area, they could still view their normal library of content without using a VPN to mask their IP address.

A blockchain solution would also be more reliable, ensuring that viewers have consistent access to their content. Many experts project that blockchain technology would also reduce operating costs for OTT platforms, potentially leading to lower subscription prices for users.

OTT Blockchain Solutions Ensure Accurate Royalty Payments

There are blockchain benefits for content creators too. Under the current system, creators receive royalty payments based on calculations made behind the scenes. While creators know how many views their content gets and can calculate their revenue per view, how those calculations work can be a mystery. However, since the blockchain is a public ledger, the exact royalty amount that corresponds to user activity could be reported and independently verified.

Blockchain has the potential to transform the OTT industry. As always, we'll stay ahead of the curve and look to make earning money from OTT video easier. To learn how to boost your OTT revenue, schedule a callback with Lightcast.com.