The content creation industry is complex and fragmented, with a long tail of stakeholders, including creators, intermediaries, and distributors. If you want entirely automated trading services, you can visit websites like the Bitcoin Era APP, where you will get all the advanced bitcoin trading features. Blockchain technology has the potential to introduce transparency and trust between these parties, enabling real-time monetization of digital content. But how does this work? And what are some reasons for adopting blockchain in content creation? We’re about to find out!
To truly understand why so many content creators are committing to the blockchain, we need to look at the bigger picture: it’s not just about transparency; it’s also about building revenue streams that last long after the creator has moved on from a piece of work.
As a baseline, we need to break down the content creation industry into two distinct parts:
- Creators (content creators, publishers, bloggers, and other content creation professionals).
- Distributors (institutional and individual buyers of digital content).
The creator is usually the most crucial party in the content creation industry, as he makes money from their content. However, before reaching a larger number of distributors, the creator must go through a medium called a distributor. The distributor comes into play because he distributes the content to reach a wider audience.
There are many parties involved in the process of creating and distributing a piece of content. Most of these parties make a living by taking cuts along the way, including advertising networks, retailers, marketing partners, and sales agents. A blockchain-enabled solution creates an unprecedented opportunity for creators and distributors to create new monetization channels with direct packet payments or usage-based micropayments built into their workflows. Let’s explore the use case of blockchain in content creation.
- Preserving the rights of the creator:
One of the fundamental rights of a creator is to keep their content. If the creator puts a work into circulation, they can’t just decide to immediately take the work off the market and claim that nobody else has a right over it. The creator needs to be assured that he can retain his content rights. In many countries, copyright laws favor creators, while it’s completely different in other parts of the world. In some countries, copyright laws are more straightforward, while in others, they are more complicated and demanding for creators.
Blockchain technology provides indisputable evidence that any innovation or changes to digital content is done by the original author and only by them. For example, a recent report states that each time they make a new song available on the platform, they can create a smart contract and give themselves (or their labels) a certain percentage of the revenue from that upload. It is directly in opposition to current streaming services like Spotify, which pay artists much less than 1% per play.
- Preventing corruption between content creators and distributors:
When a distributor purchases a piece of content from its creator, this transaction is recorded on the ledger. The creator can then be assured that the distributor will not engage in corruption, such as copying and selling the content under its name, without the creator’s permission. In addition, the ledger will keep a record of all transactions between each stakeholder, enabling creators to track the distribution and revenue of their work.
- Creating an ecosystem where unique digital assets are distributed along with their metadata:
In blockchain technology, each interaction within this ecosystem is a transaction (an intelligent contract) recorded on a public ledger. In essence, blockchain holds the potential to create an ecosystem where creators can securely share digital assets with distributors and have a transparent view of how those assets are transacted and monetized along the supply chain. This copyright registration can be easily tracked by people using blockchain technology. The application of blockchain in the content creation industry depends on the creator’s rights to keep their content and prevent corruption.
If a distributor purchases a piece of content from its creator, this transaction is recorded on the ledger. The ledger will record all transactions between each stakeholder, enabling creators to track distribution, revenue, and other value indicators related to their work. With smart contracts, ownership rights for digital assets can be securely managed and cleared for use across organizational networks. The content creator will be able to track the monetization of their work and receive payment automatically when the smart contract determines it. Smart contracts are agreements between two or more parties, stored on the blockchain in an unmodifiable manner, and can only fulfill the terms of the agreement.
- Transparency and trust between content creators, distributors, customers, and regulators:
Blockchain technology has the potential to introduce transparency and trust between these parties, enabling real-time monetization of digital content. It allows for better transaction tracking and greater transparency in a complex industry. The data stored on the blockchain is accessible to all parties (creators, distributors, customers, and regulators), creating a more transparent and democratic market for content creation.
The creators can use intelligent contracts to monetize their work by using micropayment channels with distributors who pay creators directly based on a per-use or per-view basis. Content creators can easily track the payments they receive from these transactions and can also view attributes of their work to analyze its performance across industries.