The content industry generates around $240 billion annually, and that’s only with content retailing if we count the other $60 billion brands spent each year on content sponsorship we would be speaking of a 300 billion-dollar industry, an astonishing number to say the least.
That is exactly one of the reasons why it results almost inconceivable that such a rich and mature industry still have to incur in manual efforts in order to get a title, and what’s worse, the process could take 3-6 months on average. Most of the metadata is still managed in “software” such as spreadsheets, and the process usually takes plenty of people just to continue doing this labors in a manual form, an action that commonly reduces the value by 40% due to friction.
This way, creative people in charge of making new contents doesn’t obtain fair retribution – which at large leads to an audience getting poor content as well.
However, Vuulr, The New Broadcast Content Economy on the Blockchain envisions to solve these issues by developing two main pillars, The Vuulr Foundation and The Vuulr Marketplace.
The Vuulr Foundation
The Vuulr foundation is a not-for-profit organization created with the intention of developing tools and platforms based on the blockchain technologies to assist the industry, bringing like that network effects and consequently, releasing greater amounts of value in the supply chain.
To make this possible, the Vuulr Foundation plans to partner with three different associations that currently are deploying several actions with the target of making the field improve.
These associations are non-profit as well, and their primary mission is to treat the problems that the Film & TV content industry has been having. Like this, they aim to address the issues at a strategic level, developing standards for documentation, as well as frameworks to facilitate effective collaborations of the industry on each one of the parties involved in the supply chain.
First, we have The Entertainment Identifier Registry (EIDR), the organization behind the issuing of unique identities for TV and Film assets. Secondly, MovieLabs, who created a milestone in the area of Digital Distribution Framework even including a template for average metadata. And finally, we have the Entertainment Merchants Association (EMA), the organization which deployed a standard for the Avails Data (Availability Rights Management).
The standards these associations have set are still not fully adopted worldwide. However, they have been still very well accepted by some of the most important entities in the United States. This way, huge companies like Google and Netflix have already started embracing these standards and are requesting as well that the content must come coded accordingly.
With the Vuulr Foundation, the company will aim to raise awareness of how beneficial can be to adopt these standards in the industry.
The Vuulr Marketplace
Back in old times, it was so much easier to go through the whole process. Like this, a national broadcaster used to transmit only in one language and in one country, a fact that used to make so simple the process.
For instance, a content owner could go all around the globe and sell a single country rights package to another country very easily. At a great scale, that’s the reason why back then a marketplace was actually not needed.
But that’s not the case in the current scenario. The process now has gained complexity because it is not only about national broadcasters anymore, there are also regional and online players who have a significant presence around the world, like the case of Netflix and Amazon.
When a company like Netflix decides to buy a title, the need is to have that content in 30 or even 40 different languages, but, in fact, they only buy a type of right which is the S-VOD (Subscription Video-On-Demand). S-VOD companies are definitely still in the market of content, each of which will leave a footprint so if we think about it the market has become very much of a complex one, and the tendency is an industry that resists to changes.
As the same company has established:
“If we can move fast and execute on this vision, implementing the blockchain in a very natural use case to support this industry in its transformation, we can help this US$240 billion industry to transact with much less friction. In business terms, when you remove the friction, you remove the cost.”
Friction only collaborates in demeaning the value, and this happens because of the unnecessary manual effort the industry is currently putting into searching for content, checking availability, negotiating a rights package, and more.
“If less of the revenue that the consumer is generating evaporates in the process of doing the business, then more is left to be invested in acquisition and funding of more and better content. Consumers are happier, they churn less making broadcasters happier, and higher spends on content makes the content production industry happier.
In short, everybody stands to gain.”
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