DRRIPP: A decentralized royalty, residual and interest payment platform
What is royalty income:
Royalty income is income received from allowing someone to use your property. Royalty payments are used for patents, copyrighted work or franchises are common examples. Royalties are typically legally binding.
What is residual income:
It’s money that you continue to get after completing some work like investment of time and resources. Common examples include money made by artists in Film/Music industry, when you watch a movie, television series or you hear your favorite song on radio or streaming platform. These payments are also legally binding and negotiated by unions on behalf of artists. Common examples of these unions are Screen Actors Guild, Directors Guild of America & Writers Guild of America.
Current state of the industry:
In the context of entertainment industry, established studios have in-house royalty and residual payment departments and there are boutique businesses that provide royalty, residual and payroll services to small production companies across north america. Contrary to popular notion, this task is not performed programmatically and insiders familiar with the inner workings know the extent of manual intervention in each step with speed and accuracy being the biggest challenge. Since, royalty and residuals are contractually mandated, slow and inaccurate payments also means legal challenges, penalties and fees incurred by studios and broadcast companies. While the industry continues to operate with inefficiencies in it’s workflow, it’s the creative artists who lose out on fair and equitable pay. Bigger studios have also moved to an offshore model for roles such as voice actors by hiring in the UK since there is no concept of residual payment outside of USA. We believe there is a better way to address these challenges that are currently hidden from public view by providing a platform that embraces automation running on public blockchain that will benefit both the artist (actors, musicians, authors) community and businesses that employ them while producing and distributing entertainment content that we all consume and love.
What is the total addressable market:
Royalty: In the US, royalty (including arts, entertainment and recreation) is a $372B/year industry. Typical royalty percent is anywhere between 1% to 20%. On average $37.2B/year is paid annually as royalty payment.
Residual: In the US $2.2B is paid out annually as residual payment in addition to $800M paid annually for commercial residuals. Data suggests there is opportunity for 10–15% uplift with timely and accurate payment benefitting actors, musicians and authors.
Top entertainment companies paying royalty & residuals
Royalty & Residual payment industry is gripped with inefficiency, inequity and power disparity. Our platform will programmatically calculate royalty, residual and interest payments & will allow actionable sales metrics to be published in public blockchain that is auditable, resulting in equitable, accurate and timely payments to actors, musicians, authors and more.
In the spirit of decentralization our platform will be owned by builders and users, orchestrated with Non Fungible Tokens
12/20/22: Reference architecture to be published on Jinnba.com when the site goes live
Use Case & Features
The federated architecture of the DRRIPP platform allows greater flexibility to support various real world applications and use cases. Taking an MVP approach we decided to focus on 2 M&E industries and map platform features available at launch.
- Despite high correlation coefficient, targeting insurance industry is out of scope for the MPV.
Roadmap *subject to revision
We are taking a multifaceted approach to revenue generation
a. Token gated platform access choreographed with Jinnba NFT
b. Per transaction fee
c. Compute and storage cost based on usage
Early Traction (a fraction of the serviceable obtainable market)
We plan on taking market share from two current incumbents servicing the royalty, residual and participation payments in the media & entertainment industry.
a. Entertainment Partners, a ~$200M/y revenue company.
b. Capgemini’s M&E business arm, estimated to generate ~$50 — $75M/y
Both the Co-founders of Jinnba are Media & Entertainment industry veterans with over 25 years of experience between us. Specializing in the royalty, residual and participation payments for companies such as Disney, Warner Media, Fox, Sony and more. We understand the SAG AFTRA, DGA, WGA MOU document better than most. The barrier to entry in this industry is high and we do have an unfair advantage. With our past experience we have a running start to building out the core platform features such as royalty and residual calc engine which forms the backbone of the platform.
Imagine a world where individuals and self organizing teams supported by viewers produce a film, sing a song, write a book all without the need to involve big corporations to finance the project, market it and engage in content distribution. You support the artists you like, producing content that you enjoy. Watch this space for further innovation…. brought to you by team Jinnba.
Website: https://jinnba.com (Launching Soon…)