Blockchain Technology Shaping Media, Entertainment and Advertising Marketplaces

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Blockchain Technology
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Shaping Media, Entertainment and Advertising
Marketplaces
1-609-245-0971 inquiry_at_cygnetinfotech.com
www.cygnetinfotech.com
By Cygnet Infotech
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Contents
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Blockchain Technology
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Smart Contracts
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Media, Entertainment and Advertising
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Cygnets Solution for Podcasting Industry
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About Cygnet
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What is Blockchain and How Does It Work?
Blockchain is, in basic terms, a secure and
encrypted digital database shared by all parties
in a distributed network. Any transaction that
occurs in the network is recorded, verified and
stored in the database and visible to all
participants, creating an unalterable
transaction log. This essentially results in a
golden source of truth that everyone can trust.
Thats primarily one of the reasons why its
called the technology of trust, says
Christine Moy, program lead of J.P. Morgans
Blockchain Center of Excellence. This structure
bestows special properties on a blockchain,
including greater transparency and security,
because transaction activity can be tracked,
fully verified and audited.
Blockchain is a form of distributed ledger
technology. In a distributed database, multiple
copies of data exist across a network rather
than a single centralized server or database.
Because control of the database can be
distributed across the entire network rather
than a centralized authority, participants access
the same version of the data in near real-time.
The decentralized management of the database
allows for faster, less costly processing of
transactions, which can lead to e ciencies and
cost savings for businesses.
Validation - The network of nodes validates the
transaction the user's status using Known
A verified transaction can involve
cryptocurrency, contracts, records or other
information.
The requested transaction is broadcast to P2P
network consisting of Computers known as nodes.
Someone requests a transaction.
Once verified, the Transaction is combined with
other transactions to create a new block of data
for the
The new block is then added to the existing
technology, in a way that is permanent and
The transaction is complete.
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Smart Contracts
A smart contract is a computer code running on
top of a blockchain containing a set of rules
under which the parties to that smart contract
agree to interact with each other. If and when
the pre-defined rules are met, the agreement is
automatically enforced. The smart contract code
facilitates, verifies, and enforces the
negotiation or performance of an agreement or
transaction. It is the simplest form of
decentralized automation.
It is a mechanism involving digital assets and
two or more parties, where some or all of the
parties deposit assets into the smart contract
and the assets automatically get redistributed
among those parties according to a formula based
on certain data, which is not known at the time
of contract initiation.
Every party in the network is notified of the
transaction The transaction is recorded in the
Blockchain Tom uses Blockchain as a platform to
execute the entire transaction
Tom wants to send money to Victor
The transaction gets approved if everything is
fine
PROCE SSED
Wallet is initialized
Online transfer of money happens
Victor gets money
The entire task is completed using a Smart
Contract
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Blockchain for Digital Advertising
Despite the ability to target and personalize
ads, the digital advertising ecosystem is pretty
ine cient and opaque, to the extent that 40-70
of ad dollars can go to intermediaries. There
are only a few industries that are not either
excited or worried about the concept, as use
cases, proof-of-concepts, and full-fledged
businesses based on blockchain principles are
emerging at an increasing pace. This much is
certain blockchain has the potential to disrupt
existing but also to enable new business
models. This is particularly true for the media
industries, which have been heavily a"ected by
the ubiquitous availability and the subsequent
commoditization of content and been undermined
by widespread piracy of intellectual property
(IP). Today, media users are largely accustomed
to having free access to a wide variety of
content, and most of them are still reluctant to
pay subscription fees for premium content
behind paywalls. In addition, all media segments
have su"ered significantly from digitization,
since content can be copied and distributed
easily and without loss of quality. Media
Transparency Initiative K2 Report From October
20, 2015, through May 31, 2016, K2 Intelligence,
on behalf of the ANA, conducted an independent
study of media transparency issues in the U.S.
advertising industry. K2 was selected to lead
the fact-finding portion of the study after a
request for proposal process initiated by the
ANA on June 17, 2015. Over the course of the
study, K2 conducted 143 interviews with 150
individual sources, representing a cross-section
of the U.S. media buying ecosystem. K2 kept the
identities of all participating sources and
all the individuals and corporate entities named
in their accounts confidential from the ANA
throughout the study.
Results of the study were delivered by K2 in a
comprehensive report. Among the key
findings Numerous non-transparent business
practices, including cash rebates to media
agencies, were found to be pervasive in the U.S.
media ad buying ecosystem. There were systemic
elements to some of the non-transparent
behavior. Specifically, senior executives across
the agency ecosystem were aware of, and
mandated, some non-transparent business
practices. There was evidence of non-transparent
practices across a wide range of media,
including digital, print, out-of-home, and
television. Developed in partnership with
Nasdaq, NYIAX recently deployed a
blockchain-based ad exchange platform that
allows publishers and advertisers to e ciently
trade advertising contracts. NYIAX provides
advertisers and publishers a platform to buy,
sell, and re-trade premium advertising contracts
in a forward/- futures methodology. As the
first and only trusted, transparent, and curated
marketplace, NYIAX enables advertisers and
publishers to increase ROI and to reduce costs
throughout the deal lifecycle. Richard Bush,
Chief Product and Technology O cer, states
"With valuable experience in capital markets,
NYIAX has a long-term vision to create a more
financially rigorous model leveraging fin-tech
best practices with advertising and media."
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Content Distribution in Media and Entertainment
Another perspective is that we are entering a
hype period for blockchain technology
reminiscent of the Internet bubble, so it will
be hard to distinguish between hype and true
potential. So how to know where the real
opportunities are?
Piracy is one of the main headaches that digital
distribution brought to media and entertainment.
Phil Gomes, blockchain thought leader at
Edelman, states "I personally believe that a
lot of piracy comes from friction in the legal
distribution mechanisms. Blockchain technology
can enable more frictionless monetization of
content to better compete with pirates." The key
is to seamlessly match the legal user with the
legally purchased content, so that the payment
mechanism is e cient, and it is easier to
compete with pirates, which by design don't
process payments.
Blockchain-based technologies have the potential
to resolve some of the current challenges
Paid content can receive a boost from new,
micropayment-based pricing models
Monetization options emerge for an increasingly
fragmented content inventory (e.g. blogs, news
bites, photos)
Clearly, from the examples above, blockchain is
not just about digital currencies. And whether
it's these or other ventures that succeed, all
experts agree that 2018 will be a big year for
blockchain in media and entertainment. As we
understand, 2017 was full of corporate pilot
projects to test applications of blockchain
technology 2018 will be the year when many of
these will be deployed at scale.
Allocation of advertising budgets becomes more
accurate and targeted as media usage can be
directly linked to the respective content items
Copyright infringements and piracy would be
nearly impossible
However, the technology and the mechanisms are
still young and evolving, and industry-wide
adoption of standards is most probably still a
few years o".
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13 Years Serving the Podcast Community
C A SE S TUDY
Podcasters and Advertisers Marketplace on
Blockchain
62 Million Monthly Audience Members
Client Pro?le Our client is the worlds largest
podcast network who pioneered the system to host
and publish podcasts in 2004 and since then has
grown by leaps and bounds.
35 Thousand Podcasts Hosted
Our clients Apple Podcasts and iTunes expertise
in podcasting and iPhone apps is the basis for
world class tools, service and support.
With over 4.6 billion download requests in 2016,
our client provides superior hosting services,
scalable ad insertion technology and delivering
superior content on the net, on portable media
devices, at work, at home, in the car and
wherever people want it.
Oue client has worked with thousands of producers
- from beginners to professionals - to help them
establish their brand and unique show, build an
audience, and make money through new media.
4.6 Billion Podcast Downloads in 2016
Business Scenario Client approached Cygnet to
enable them to disrupt the podcast industry by
having a unique online marketplace for
podcasters and advertisers with campaign
management. Client wanted to develop a global
blockchain based electronic marketplace focused
on providing transparent bidding and campaign
execution for the entertainment industry.
The marketplace is aimed at podcasters, network
administrators, advertisers, ad-agencies and
clients team to participate into business
decisions for podcasting. The developed platform
will enable podcasters to announce their shows
in a best possible manner and provide visibility
to advertisers for their campaign execution.
Business Challenges
O½ine facilitation of podcasters advertisers
No value addition to podcasters advertisers
120 days payment cycle transaction cost
Knowledge management on excel sheets
Insignificant Podcast analytics
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Marketplace
The Marketplace is expected to deliver on five
key areas Decentralize facilitation of
podcasters advertisers with apt
matching Increase transaction e ciency reduce
transaction cost Enable institutional
infrastructure with the auto management of smart
contracts Improvise on market value proposition
of podcaster provide right statistics to
advertisers Improvise payment cycles for all the
parties involved with the help of Smart Contracts
Proposed Solution
While analyzing clients business models and
channels of stakeholder engagement at di"erent
levels, Cygnet conceptualized a common
marketplace for advertisers and podcasters
on state-of-the-art blockchain technology as the
base to ensure transparency and immutability of
each individual block with the help of smart
contracts.
System architecture will take care of following
business goals
Registration of Podcasters, Advertisers,
Ad-Agencies Network Administrators
Podcasts announcements agreements through
Smart Contracts
Campaign management through Smart Contracts
Wallet management
The main goal of a smart contract is to
decentralize business between two anonymous
parties. Blockchain and Smart Contracts provide
the necessary tools and framework to create a
futuristic marketplace where the supply and
demand sides can engage in trusted trading
transactions based on di"erent business rules in
a decentralized manner.
Commission Payments management through Smart
Contracts
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MONITORING
HEALTH KPI
System Architecture
Server Service
Server Service Campaign
NOTIFICATION
REPORTING
INTEGRATION SERVICES
ACTIVITY
Audit Compliance Trail Grievance
Manual Automated
Podcast Platform
System SMS
Email
MARKETPLACE BIDDING ENGINE
ENGINE
MEMBERSHIP
User Management
Registration Roles User Permissions Dashboard
Podcast Campaign
Word PDF Insertion Order
BLOCKCHAIN
PRIVATE BLOCKCHAIN WITH DISTRIBUTED LEDGER
THIRD PARTY INTEGRATION
Smart Smart Contracts Tokens
Smart Wallet
Payments 2-Factor Authentication
DATABASE
DATABASE
Data Warehouse
OLTP Database
Podcast
Artificial Intelligence
At the core, the entire marketplace will be
bolstered with AI that will help our client and
the customers to achieve the following
objectives
Ad Agencies Improve availability matching between
Ad Agencies / Advertisers and Podcasters
Network Admin Provide suggestions to the Network
Admin on the Podcasters they can associate with
to participate in specific campaigns
Provide insights to Ad Agencies about popular
podcasters, shows and timeslots for campaigning
Provide suggestions on Ad Agencies for future
campaigns
Podcasters Provide suggestions to podcasters
based on genres content being liked, and the
rate at which they can baseline their podcast
timeslots
Provide suggestions about the star Podcasters
and tentative rates of associating with them
baseline their podcast timeslots
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Modules
Advertiser The objective is to engage more
advertisers on the platform and provide a
marketplace where they can promote their
products via podcast.
Podcaster The objective is to enable a
marketplace for podcasters where they can upload
their audios / videos to engage masses, and at
the same time monetize their knowledge or hobby
from advertisers.
Smart Contract The objective is to come up with
an agreement that would settle financial
matters such as revenue share, percentage, etc.,
without any tedious paperwork.
Tools, Technology and Methodology
Technology
Dev Framework Environment
Application Design
Database Environment Methodology
Ethereum Node.js Angular HTML 5
Angular JS - Frontend Node.js - Backend Visual
Studio Code
Micro Services Architecture
MySQL Jira Bitbucket Agile
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Business Benefits
For Client
Promotion
Opportunities
Smart Contracts
The marketplace would bridge podcasters and
advertisers.
Smart contracts would eliminate the paper work
and excel sheets.
Attract and promote more Podcasters from other
platforms
Decentralization and smart contracts would
simplify campaign management and reduce payment
cycles.
Data integrity would improve, and maintenance
will be simplified.
Allows users to work smarter and improves
productivity
For End Clients
Easy-to-use Minimum steps to sell the
advertisement timeslots Eliminating dependency
improves resilience, flexibility, performance
and scalability
Relevant
Statistics
Marketplace helps to locate relevant advertisers
based on the podcast category, thus eliminating
junk
Maximum information access and availability of
key data assets promote informed decision making
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About Cygnet
Founded in 2000, currently with o ces across 6
continents
Cygnet Infotech is one of the most trusted names
in the IT space delivering technology solutions
to global clients across 29 countries. Born out
of a vision to create software development
company where quality, innovation and
personalized services trump low cost, makeshift
solution, Cygnet partners with its client to
help them transform in to high performance
businesses.
800 Employees Delivered 2000 Projects
Cygnet has deep industry and business process
expertise, global resources and a proven track
record in delivering innovative technology
solutions. Cygnet can mobilize the right people,
skills and technologies that improves business
performance.
Contact Us
18 Years of Experience Serving 250 clients in
29 countries
US OFFICE Cygnet Infotech LLC. 125 Village
Boulevard, Suite 315, Princeton, NJ 08540
1-609-245-0971
inquiry_at_cygnetinfotech.com
www.cygnetinfotech.com
80 Client Retention
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