The process of transferring media contents from producers to buyers is not a very smooth one as it is oftentimes carried out offline, raising cost by about 30-50%. Apart from this cost implication, the methods of distribution are being outdated and as such, creators and users are already getting fed up.
But necessity has always been the mother of invention and Media Industry Licencing Content has entered the media content industry to help alleviate these frustrations. The MILC platform, with the help of blockchain technology, is set out to build a more reliable bridge to connect media content audiences with creators, buyers and distributors. We snooped around their project and found that it holds potential. Infact, the following are the top seven facts that you must know about them.
Pioneers in Digitizing Media Content Distribution
They are obviously making the first move towards creating a virtual media content marketplace for professionals. Technically, their platform is capable of managing all metadata of a license. In fact, all existing broadcast formats such as video and audio are supported on the platform.
Who knows? It might take up to two years before another platform will be developed in the digital space for the distribution and exchange of media content.
Before now, media content licensing takes on an analogue method which requires lots of travels but with the outbreak of the COVID-19 pandemic and its attendant movement restrictions, there's a need for a better way. These travels for licensing costs money and thereby reduces the margin for media content creators.
We cannot rule out the incidences of damages due to unintentional license violation. So what they're saying is that with a digital licensing system, the cost associated with travels will be eliminated and the damages due to unintentional license violation will very obviously be eliminated.
They Tackled Cost of Transaction
This may not be so obvious but what do you expect in a system where middlemen are all but eliminated? Your guess is as good as mine. In the traditional system of exchanging media content, many middlemen are involved. The more middlemen there are, the more expensive it will be for the buyer and less profit for the creator or seller.
And this happens because every person in the distribution chain wants a mark-up for himself. Whether or not a sale is made, these middlemen make charges. We figured out that the team behind the MILC platform only receives a fee when sales take place. Probing further, we realize their fees are significantly lower than what's obtainable in the traditional system.
While the MILC platform will charge at 10%, the traditional distribution system can take up to 50% in distribution cost. It may be important to note that these charges are regressive: the higher the sales, the lower the fees charged.
They Tokenized the Media Content Industry
The conventional system of media content distribution is obviously fraught with lots of bureaucracy because of the many people involved in the chain. This bureaucratic set-up makes pricing time excessively long.
So what they did was to offer a digitized platform which makes it possible to tokenize the pricing system. Essentially, MLT is the token they presented for this. It's understandable that all of this is new and the industry has not seen anything like it before but then we'll join the rest of the world to watch where this goes.
But one thing is certain: users are likely going to be fine with this because with MLT, exchanges can be done in real time thereby reducing the holding time associated with the use of fiat currencies. Lastly, MLT token holders are allowed to vote and make governance proposals to impact the development of the platform and in turn they are rewarded for participation.
Fundraising Options for Content Creators
With the Launchpad feature accessible on the MILC platform, it appears content creators are able to do fundraising for their projects. It may not be popular at the moment but this looks like the kind of idea that makes it easy to kick start projects. Basically, this works by allowing content creators and owners to pitch their contents to a target audience or group and those interested will have the opportunity to indicate their interests.
Another way around it is that co-investors can have the opportunity to be financially involved in new projects that they see potential in. To visualize this even more elaborately, one can bid for certain roles in potential films or bid for co-authorship as the case may be.
There's a lot of money in professional film, TV, online publishing and streaming business. Up to USD500 billion are traded every year in licenses. And more people are entering the industry. In spite of this huge amount of money, content producers aren't making enough money for their beautiful contents. The reasons are obvious!
It makes sense that with the calibre of features highlighted in this report, one can see where the media content industry is headed in the nearest future. The traditional medium of exchange is gradually phasing out. Do well to keep an eye on this drift as it is likely going to change the way we consume media content.