The Integration Proposal of Social Media and Blockchain-Based Smart Contract System for Art Trading

The Integration Proposal of Social Media and Blockchain-Based Smart Contract System for Art Trading

Introduction:
The rapid growth of social media as a platform for artists to promote and sell their artwork has brought about various challenges in terms of trust and security. In this article, we propose the integration of social media and a blockchain-based smart contract system to record and preserve an artist's profile, information related to their artwork, and transaction details. This integration will enable participants in art trading on social media to maintain mutual trust and conduct transparent transactions. Furthermore, this proposal can be implemented using APIs provided by social media developers or open-source APIs, without the need for modifying existing social media platforms. This research is expected to contribute to the growth of the art trading market on social media by enhancing the existing methods of art trading.

OTT Market Survival: Netflix and the Sustainability Challenge:
The native OTT platforms face the challenge of sustaining their businesses by increasing revenue and reducing costs. To generate profits, the parent companies (Wave - KBS, MBC, SBS; Tving - CJ ENM, JTBC) must produce and supply disruptive dramas or entertainment programs. Until Wave or Tving establish their competitive edge, the parent companies should consider providing a certain level of content supply compensation. Additionally, expanding the subscriber base overseas is crucial. Considering the economic power of Southeast Asia, approaching the market through advertising models can be a viable strategy. Government support is necessary for international expansion due to the substantial costs involved in translation and dubbing. Exporting content worth $100 million can drive $180 million in consumer goods exports, providing sufficient justification. The problem of OTT deficits is mainly caused by a drastic increase in production costs. While Netflix can achieve economies of scale through over 200 million global subscribers, domestic broadcasters and production companies cannot. Unless this problem is addressed, a solution remains elusive. (Note: Is the problem really the increase in production costs? Isn't it because you didn't provide enough original content, and now you're complaining about the money spent on that? Will reducing it attract more subscribers? And why call it an increase to avoid admitting mistakes? Are you uncomfortable because the exploitative broadcasters who didn't venture into the market are now in the red?)

Recent financial performance shows that apart from Netflix, other OTT services have not achieved stable businesses. According to LIGHTSHED, as of the third quarter of 2022, only Netflix recorded a profit of $6.55 billion over one year, while the rest reported losses. The losses amounted to $4.09 billion for Disney (Disney+, Hulu, ESPN+), $2.52 billion for Peacock (expected to reach $3 billion in losses this year), $2.06 billion for HBO Max, and $1.82 billion for Paramount+. Domestic OTTs in South Korea are also experiencing losses. Wave and Tving recorded operating losses of KRW 121.7 billion and KRW 119.1 billion, respectively, showing a significant increase in deficit. Watcha, which was put up for sale, failed to find a buyer and is currently collaborating with Hyundai to be incorporated into their new vehicles. Given this situation, it raises doubts about the sustainability of OTTs other than Netflix. The reasons for this situation can be attributed to the failure to secure enough subscribers to generate revenue and the increasing costs of content acquisition required to enhance the platform's competitiveness.

Common Points and Natural Connection:
Both the integration proposal for social media and blockchain-based smart contracts in art trading and the challenges faced by OTT platforms share a common theme of the need for sustainable business models. While social media lacks the necessary features for secure and trustworthy transactions, OTT platforms struggle to achieve profitability due to various factors, including the need for substantial capital investment in content production. By addressing these issues, both sectors can enhance their market presence and ensure long-term viability.

Unique Insight:
One unique insight that arises from these discussions is the potential for collaboration between social media platforms and OTT services. By leveraging the reach and user base of social media platforms, OTT services can promote their content and attract a wider audience. On the other hand, social media users can enjoy a seamless experience by accessing OTT content directly through their preferred social media platforms. This collaboration can create a mutually beneficial ecosystem, where OTT platforms gain increased visibility, and social media platforms provide enriched content options to their users.

Actionable Advice:

1. For social media platforms: Collaborate with blockchain technology providers to integrate a smart contract system that records and preserves transaction details for art trading. This will enhance trust and transparency, attracting more artists and buyers to the platform.
2. For OTT platforms: Explore partnerships with social media platforms to expand their subscriber base and increase visibility. By leveraging the reach and engagement of social media, OTT platforms can attract a wider audience and drive growth.
3. For governments: Provide support and incentives to encourage the exportation of content, enabling OTT platforms to reach international markets. This can include financial assistance for translation and dubbing costs, as well as promotional campaigns to showcase local content.

Conclusion:
The integration of social media and blockchain-based smart contracts for art trading, along with the challenges faced by OTT platforms, highlights the importance of sustainable business models in the digital era. By addressing the limitations of social media and supporting OTT platforms, both sectors can thrive and contribute to the growth of the art trading market and the entertainment industry as a whole. Through collaboration, innovation, and government support, the future of these industries looks promising.