Entertainment industry of 21 century — search for optimal model
Owing to the development of Internet technologies, the creators of video content and viewers have got more opportunities — the first ones obtained direct access to the audience, the latter — the ability to choose. However, if you think about it, it becomes obvious that neither the first nor the second possibility has been fully implemented so far.
Projects that require funding are still produced by a few large production companies, and their authors, in case of “success,” have to cede most of their rights and revenues to them. There are two questions on the agenda — doing away with the monopoly of corporations and compensation of the funding gap for new projects.
Over the past 10 years, several models aimed at solving these problems have emerged, but in fact all of them are half measures. For example, crowdfunding platforms like Kickstarter, Indiegogo try to solve the problem of finding funds for new projects. Sometimes content creators even manage to collect the required amount, but this money comes in the form of support from the crowd, and not as a proper investment.
Such a one-time fundraising cannot serve as a “kickstarter” for a long-term business model. In addition, these platforms do not solve the problems associated with distribution of the ultimate product and the receipt of revenues. At best, they help to accelerate at one particular stage of the project, not solving all the tasks at once.
Today one of the most popular platforms for content distribution and earnings is YouTube. This model works well for those authors who already have a large volume of finished content and who want to receive advertising revenue. In addition, it is convenient for video bloggers, who produce content with minimal costs, as well as for those who know how to attract traffic to get hundreds of thousands or millions of views.
However, YouTube does not solve the problems of authors of premium content, which requires a lot of time and money for production. Yes, and should take into account the fact that its consumers do not like to watch advertising, and they are willing to pay fixed monthly fee for access to their favorite movies and shows.
The original way to profit from premium content was paying for viewing/listening to a particular song, album, series or episode. But the audience did not enjoy “pay per view” method which eventually contributed to the rise of online piracy. The most cutting edge companies, such as Netflix, switched to another model — a monthly subscription to the video library. Nowadays it proved to be the most successful.
More than half of young people (13–24 y. o.) in the United States today do not imagine their lives without Netflix, among other age categories the popularity of online streaming of quality content is less, but constantly growing. According to analysts, by 2021, Netflix is forecasted to account for 27.5% of the global market, with 118 million paying subscribers. The remaining 72.5% will be split among other major players, such as Amazon, Hulu, etc.
The market of online streaming is so powerful right now that its gravity “curves” the film business, television and telecommunications. It looks very cool, but it does not solve problem of corporation’s monopoly of and lack of funding, because in fact Netflix and any analogues is another big production company where all the issues are addressed in the old-fashioned way.
The market of online streaming is so powerful right now that its gravity “curves” the film business, television and telecommunications. It looks very cool, but it does not solve problem of corporation’s monopoly of and lack of funding, because in fact Netflix and any analogues is another big production company where all the issues are addressed in the old-fashioned way.
After assessment of the situation on the market, BOND film platform takes one more step forward. BOND offers a decentralized, ad-free, subscription-based economic model that not only benefits creators directly, but also provides opportunities for any viewer to become an investor and obtain a revenue-generating stake. By taking out middlemen from the game, BOND offers a unique content selection system and mutually beneficial relations for all participants — creators, viewers and investors.
Stay connected and you will learn how the new economic model of the BOND platform works and why it is bound to succeed.