To manage content rights and royalties for media and entertainment industry EY with Microsoft launched a blockchain based tool. As per the statement issued the blockchain based solution will initially be deployed in gaming within Microsoft and its associated partners. The tool will be a step ahead to leave behind the royalty calculation which is being processed manually presently and to digitise the entire process.
There will be numerous benefits for market participants through the solution not only they will be enabled to have a real-time visibility of transactions leading to an insight into market and the dynamics that underlie the industry but they also be able to overcome the inefficiencies associated with operations. The whole process will be paced up with this. With the blockchain based solution gaining insights into transactions would be much easier .
BLOCKCHAIN SOLUTION AND FUNCTIONALITY
With an embedded smart contract architecture the blockchain solution will carry out accurate and real-time calculation of each participant’s royalty position , a great visibility for recording and reconciling royalty transactions.
The network is based on Quorum blockchain protocol and Microsoft’s Azure cloud infrastructure and blockchain technologies.Post the implementation of solution there will be much enhanced visibility to the transactions for the Microsoft’s gaming partners than the legacy systems, which could take up to 45 days or even more.
- INCREASED TRUST AND TRANSPARENCY
- REDUCTION IN OPERATIONAL INEFFICIENCIES IN RIGHTS AND ROYALTY MANAGEMENT PROCESS
- ELIMINATION OF COSTLY MANUAL RECONCILIATION
Ubisoft, the French gaming company which is one of Microsoft’s gaming partner is testing the solution the implementation will take place in phases. Regarding this, the Senior Vice President of Finance & Strategic Planning at Ubisoft, Loic Amans said:
We are always looking at how to leverage emerging technologies in all facets of our business. The opportunity to collaborate with EY and Microsoft on blockchain use cases in the domain of digital contracts and royalties is truly exciting.
The issued statement highlighted that though the solution is being tested for gaming currently but it is well designed to serve any industry where (IP) Intellectual Property or assets are licensed to other parties and where creators are paid royalties. It can include writers, lyricists, authors, developers whose intellectual property generates royalty.