How Content IP Tokenisation will revolutionize Creator Economy

HOW CONTENT IP TOKENISATION WILL REVOLUTIONISE CREATOR ECONOMY

 The evolution of Web3 technologies is bringing a promise of massive changes in the Creators economy.

Impact on the Creator’s end:

Putting one’s IP rights and content on-chain, is equivalent to literally flipping the content monetization model, hence bringing far more transparency and control over content utilization for the creators.

In a conventional model – the creator is literally dependent on the relative liking of every new content piece that he generates – and is forced to first self-invest to make appropriate content. Furthermore, he is totally dependent on 3rd party distributors and producers – who, since ages, have been under-buying the content vis-à-vis its potential value and hiding actual potential behind artificial walls or complicated algorithms.

However, when a creator ‘Tokenises’ his content – i.e. puts content ownership & consumption rights/control over the blockchain – he transforms from being a mere creator to the actual driver of his content and creativity. Some of the key benefits that content tokenization brings for creators include:

1.       Upfront monetization and funding to produce better content: By selling his content tokens, the creator is able to upfront generate monetization for building his content portfolio as well as identify his deeper, committed fans – and his fund cycle is now no longer dependent on just the lifecycle of his individual content pieces.

2.       Better Transparency: Content Tokenisation brings unparalleled transparency towards content consumption – as the creator can completely view & control content consumption – including ability to analyse patterns, understanding fans through wallet analytics, having a view of fund flow and managing royalties.

3.       Enhancing customer engagement and loyalty: Through tokenization and consumption analytics – the creators can offer far more engaging experiences to their truer fans and build further loyalty, all through a controllable environment.

Impact for potential ‘Investors’/Tokenholders

Content IP, globally, is more than USD 250 Billion market – but even then, it is highly private and concentrated within just few players.

With ‘Tokenisation’ – we can unlock this immense value upside for millions of diligent investors, who are increasingly seeking opportunities across emerging alternative asset classes – a category, which is rapidly getting further fueled by the power of blockchain. (See following graph)

The other common question that I normally come across – why tokenization (which can be a technology and regulatory intensive exercise), when the same objectives could be met with just conventional fractionalization.

Again - multiple experts, organisations and consultants, have proven the relative advantages of ‘Tokenising’ over ‘Fractionalisation’. The following graph and pointers just summarise some of the key advantages:

 1.       Global & Easy Liquidity: As opposed to ‘Fractional’ investment shares – which may involve bureaucratic processes to manage exit and may have intra-country/jurisdiction restrictions – Tokens, atleast theoretically, can be exchanged almost immediately and globally – which is why leading financial institutions are today tokenizing even currency & derivatives.

2.       Better Transparency: The advantages of data immutability on blockchain, renders greater transparency, better fraud control, ownership data over underlying assets in case of on-chain tokens, as opposed to fractional shares. Further – the power of underlying smart contracts – make funds flow and rights transfer fairly automatic and not subject to individual interventions.

3.       Reduced middlemen: With asset tokens manageability over digital exchanges – the requirement of middlemen reduces – making investment process more cost-efficient and lesser prone to errors.

4.       Global Market Integration: Once tokenized, such assets could be open to seamless global investor participation

No wonder then – there are already global platforms being built to start tokenizing Content IP. What is required, even now, are right teams, well curated projects, transparent intent and robust compliance backend. These are the factors which would determine real winners amongst such platforms.

Lets Web3 It!