Blockchain
technology is already proving disruptive, and for the good, within finance,
banking and investment. With new industries being penetrated by blockchain
enabled innovations and industry giants mulling their options, whether to adopt
blockchain applications or not, one industry where changes are already
birthing, is entertainment and media.
Online Entertainment: the Current Dynamic
The revenue
sharing model of the large online platforms, such as Google, Instagram, and
Facebook, is one where the majority of proceeds (mostly from ads) is retained
by the distribution platforms. This
model has gained ill favor recently, and to
illustrate this point: breaking into the top 3% of YouTubers with 1.4 million
monthly views may
only translate into $17,000 USD per annum
unless you have a celebrity covering your back.
By
exploiting smart contract technology and node content distribution on the
blockchain network, a system can be created the users of a specific content
network are in turn the owners and beneficiaries. This enables content and
revenues to be distributed equally among all participants, and eliminates
unnecessary intermediaries through direct interaction of the network members,
regardless of whether they are content creators, users, or both.
The BUCKY House Model
By using the
BUCKY House ecosystem creators such as authors, designers, musicians, actors,
and developers are directly connected with their audience. Within their network
of users who share their interests and passions, the creators set the fees for
use of their content. This is managed by the ethereum smart contract system,
and the billing is transparent from the outset. Payments are automatically
authorized by smart contracts when specific criteria are met.
By utilizing
this model, subscribers effectively pay less for exactly what they want and
nothing more while the content developers receive the majority of the revenues
with a portion distributed between the followers who host their content. Advertising
doesn’t fall into the equation.
The Underpinning Philosophy
The
philosophy forming the foundation of the BUCKY House platform is one where
creative individuals and groups can publicize themselves and their work to
establish a network of followers. Through the open source ecosystem they can
distribute their content unbounded by geography, demographics, politics etc.
and have complete freedom to decide their own fees and monetization model.
“Your
Content - Your Rules - Your Billing”
The BUCKY
House slogan in effect means that creators have complete freedom to decide
their content and are unrestricted by others (production houses in particular).
They create the rules for distributing their material among their follower
network. The creators and followers together decide and agree upon the
parameters of the smart contract, including the proportion of revenues
allocated to the various parties.
Blockchain Uptake of Media & Entertainment Subscribers
The more
cynical-minded reader may be thinking: “these
blockchain tech companies are basically replacing production houses.”
However, the shift is more fundamental than this. While blockchain networks
require maintenance, and of course need a revenue source, the financial structuring
completely departs from previous models. Through creating an ecosystem
where users control their own content and directly interact with their
followers, the control fees shifted away from a central hub and directly into
the hands of those involved in creating and using that content.
Furthermore,
blockchain is efficient at handling micropayments, something which large
corporations and banks avoid, and the
transaction costs are minimal. Through
regular micropayments between users, the platform receives sufficient revenues
from minimal percentage fees to maintain its costs.
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