Telecommunications giant Telenor is hoping the technology behind initial coin offerings (ICOs) can help it disrupt the media business model.
Central to the Norway-based firm’s exploration of the tech is its partnership with data distribution startup Hubii, which launched an ICO this week using the ethereum blockchain. Both companies believe the project will bring benefits: providing a way to create a decentralized, autonomous marketplace of content that can be sold across different platforms, as well as helping Telenor thwart a long-standing hacking problem.
The firms are also interested in how they could directly interact using smart contracts powered by ethereum, instead of via the pesky media companies now increasingly viewed as middlemen.
In conversation with CoinDesk, Telenor’s global partnership director, Ketil Hoigaard, described how a number of early-stage blockchain operations being conducted by his firm around the world could stand to benefit from lessons learned from the Hubii Network ICO.
“Using technologies like blockchain to deliver these services is [the] key to succeed, to be honest, because I think [blockchain is] what’s coming to all these verticals as a tool, a platform, to help deliver content to the end users in an easy way across borders.”
Telenor’s ICO interest
Hoigaard works at Telenor’s main innovation lab in Norway, where he and the company’s head of business modelling, Mark Briscombe, are building a blockchain research team to explore a number of possible applications for the technology.
As part of that work, Briscombe has formally joined Hubii Network’s impressive advisory board, which includes former Reuter editor-in-chief David Schlesinger and John Paton, the former CEO of Digital First Media.
In that role, Briscombe not only provides business advice to Hubii, but also seeks to learn from the startup’s recent token sale.
The unusual partnership between the two firms has the telecommunications company moonlighting as a media outlet, serving local news content from Hubii’s approximately 560 third-party content creators to 50 million users each month.
But matching all that content to the best-suited audience, across multiple national borders in Southeast Asia (where the project has so far been implemented) – and doing so in real time – has provided quite a technological hurdle.
Hoigaard, who called the process a “nightmare,” now hopes the ICO will help Telenor figure out how to more seamlessly manage content creation and distribution, while also eliminating middlemen to get cheaper content for its news app, WowBox.
The middlemen the companies are trying to disrupt (as in other similar attempts to reimagine media with blockchain) in this process would appear to be the publishers themselves.
As news and video consumption increasingly comes to users via algorithms, media companies that pay reporters, bloggers and videographers a salary stand to be increasingly marginalized by self-executing smart contracts written on a blockchain.
By moving the functions of a traditional media house to a system operated using blockchain tokens and smart contracts, both Hubii and Telenor hope they can make money and cut costs by paying the creators for their content directly.
“I really want the original content and to use it as I want, in my context,” said Hoigaard. “And we are willing to pay for it, because we know the users will be there.”
A secure token
However, Telenor’s exploration of ICO technology goes beyond the Hubii partnership.
Already, Telenor issues tokens from a traditional, centralized database to its WowBox customers in Bangladesh and Pakistan. But they have proved easy to hack. When Googling “WowBox tokens,” three of the four most-watched videos show how to hack the app to receive unlimited tokens.
In this way, Hoigaard remarked that he sees a public blockchain with a tradeable token as an elegant solution:
“We are looking into using a blockchain and our own tokens for our millions of users. They will then get the actual token, on a blockchain, instead of just a database.”
From there Telenor hopes it can grow the program without roadblocks, and the company very much sees expansion on the horizon.
Not only are Hoigaard and Briscombe building their dedicated blockchain team in Telenor’s Norway innovation hub, but of the 15 countries Telenor serves, Bangladesh, India and Thailand have “innovation houses [that] are looking into blockchain,” Hoigaard said.
Telenor image via Shutterstock
The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Interested in offering your expertise or insights to our reporting? Contact us at [email protected].