How to Make Ad-Free Content Networks Work with Blockchain Tech in 2019 By Martin Floreani

The public hates interruptive ads. What the public loves is great content seamlessly delivered. HBO and Netflix are beloved brands for this reason, and their rise has coincided with a mass exodus from cable TV. Websites are prime examples as well. To borrow from Marie Kondo, when is the last time the autoplay ads on YouTube or the pop-up ads on any number of websites sparked joy?

The ad experience is bad enough, but the implications of the ad model and what it means for your data are even worse. When your data is being mined by digital platforms to sell to advertisers for targeting purposes, you become the product. There is a cost to this, and it’s your privacy. Anonymous data is collected from an estimated 200 million mobile devices in the US, sometimes as often as every 2 seconds.

Consider the plight of content creators who must operate in this environment. They must cater to the whims of advertisers, who are careful about what content they want to associate with. If a creator ignores this, they face any number of consequences that can impact their livelihood (i.e. demonetization, reduced reach, content removal). When the advertisers are in control, consumers suffer because the spectrum of content produced by creators is more limited.

Ad-driven content businesses clearly don’t work for all stakeholders. Subscription services are a better model for creators and consumers alike, and by utilizing blockchain technology, they could be even better.

You Get What You Pay For

Subscription-based models are a tried-and-true method for media businesses to deliver and monetize content. Perhaps you pay for Netflix, HBO, or Amazon Prime because of the great films and TV shows available on their platforms. This award-winning content is made possible because the filmmakers and creators behind these projects are not beholden to advertisers for their revenue. This subscription model also can be applied across Internet services to improve user experience.

OK, but YouTube already has a subscription model in YouTube Premium, so this isn’t a novel concept.

True, but YouTube dipping their toes into subscriptions while they continue their ad model is not going to move mountains. For the model to work, the content must be exclusive to subscribers, and all YouTube content remains accessible outside the paywall.

Got it. So what’s your point about blockchain? I don’t see the need. I’m perfectly happy with Netflix, for instance.

When it comes to consumer data, Netflix is leaps and bounds ahead of Facebook and Google. But what might not be obvious is that they keep all data private. Creators who want to license or sell their content to Netflix are forced to guess their value, whereas Netflix has near-perfect clarity on what that content means to their bottom line. When information asymmetry exists, it adds friction and creates inefficiencies in deal making.

Blockchain technology can solve this dilemma because it enables open and transparent properties. Imagine an ecosystem where journalists, filmmakers, vloggers, and other creatives know the exact value they are adding to a platform. This would enhance trust between all stakeholders and help creators focus more on their product and less on negotiating.

In addition to transparency, blockchain allows for a better model where value can be tracked, awarded, and distributed more accurately. Middlemen and rent-seekers can be removed or limited in order to directly connect consumers and the goods and services they use.

How would such an ecosystem work?

Blockchain enables a process called tokenization wherein trackable actions are monetized and rewarded in the ecosystem’s tokens. Because of blockchain’s ability to accurately track transactions (which could be a creator posting a video, a user sharing it to their social page, or a platform licensing it to their channel, etc.), all of these actions can be attributed a value.

In an ecosystem that fosters collaboration over competition, behaviours that promote the health of the entire network should be ascribed the most value. A creator who posts amazing content enjoyed by fans is bringing more users to the ecosystem, which adds value to the network and is a positive for anyone who holds that ecosystem’s token. A user who curates content from different creators is also adding value to the network, so there are diverse ways for participants to contribute and earn rewards.

All of these actions together create a self-sustaining system that does not depend on advertisers, allowing users to be true customers instead of advertisers paying for unsolicited access to users through their data.

Simply put, when blockchain is used correctly, everyone is aligned. This is the future of media.

Author Bio:

Martin Floreani is the founder and CEO of Rokfin. He focuses on delivering a product that creates the world’s most efficient content network. He previously founded FloSports, a leading subscription-based sports media company. He ran the company for 12+ years as its CEO and raised more than $40MM in funding through a combination of debt and equity rounds. He grew the company from zero to 250 employees while expanding the company’s network to more than 20 sports verticals.

After leaving FloSports, Martin reflected on the media landscape and noted the glaring inefficiencies that exist in how content creators, consumers, and digital platforms interact. In particular, he recognized the value being stripped away from content creators by digital platforms. He knew there was a better way to capture this value utilizing blockchain technology. With that, Rokfin, as we now know it, was born.

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