Why Access Protocol is better for content creators

Digital media monetization is broken

Most revenue generated by digital media companies comes from selling ads, which forces these companies to compete against social media giants like Facebook and Google, who are able to provide impressions at a much lower CPM (the amount an advertiser pays per one thousand visitors who see its ads).

Competing with social media for advertising dollars has not only proven to be unsustainable but has also created misaligned incentives that have pushed many media companies to produce low-quality clickbait content in order to drive traffic to their site.

The disparity between the level of value captured by social media platforms and digital media companies is striking. In 2021, Facebook had an average revenue per user (ARPU) of $213.95 whereas a typical ad-supported digital media company has an ARPU of well below $0.50. This means that Facebook captures more than 300 times higher ARPU than the vast majority of ad-supported digital media companies.

Digital media companies, that have premium brands that can get their readers to pay, have started to migrate towards a business-to-consumer (B2C) subscription model. This monetization model provides the company with recurring revenue and better aligns interests between the content creator and the consumer.

However, a B2C subscription model’s paywall creates friction and alienates some portion of users who will either never want to pay or do not have the desire to allocate funds on a monthly or annual basis. This model suffers from extremely low conversion rates (often <1% of the audience) and imprecise value capture. Bloomberg has <400k paying subscribers out of their 60–80 million monthly active users.

Both of these monetization methods are inefficient at capturing value for creators. There are businesses that have implemented a B2B model that have seen success, however, these services are not inclusive of all consumers.

How it works

Creators and publications can create their own pools with Access Protocol. Individuals can stake their $ACS tokens in a particular pool in support of their favorite creators, unlocking premium content that would otherwise require signup with a credit card.

In the first year circulating supply is set to grow at 10%, and this number will decrease over time (to learn more about our token economics, governance, and deeper protocol functionality please read our whitepaper). This inflation reward is split evenly between creators and stakers.

Creating a new fee generation stream

The reward split functionality of Access Protocol incentivizes creators to produce valuable content for their audience. In turn, consumers are rewarded for supporting their favorite creators and publications. Ultimately, this enables all digital media companies to prioritize user experience over the interests of sponsors. This realignment of creator incentives unlocks unprecedented value for supporters.

Increase the number of fee-generating users

In the B2C subscription world, a 5% audience penetration rate is known as best in class, however, most digital media companies, including those at scale like Bloomberg and insider, maintain less than a 0.5% penetration rate.

Web3 has introduced a seamless way to intertwine on-chain identity with new products and services. Consumers are able to seamlessly access paywalled content by connecting their wallet and staking to a creator pool in perpetuity with a single click. No credit cards, no sign-up, minimal friction.

By removing the use of credit cards and the associated need to renew every month or year we have created the opportunity for subscriptions in perpetuity. The only reason or incentive for users to churn is if they determine their tokens are better utilized at another publication. As a result, we will see creator audience size increase meaningfully over time.

Significant increase in user lifetime value (LTV)

The implementation of one-click staking drastically reduces friction around signup and renewal processes. By solving issues proposed in Figure 1, creator incentives are realigned to produce content that is solely valuable to users. With an increase in ARPU and a decrease in churn rate creators will ultimately see significant increases in user lifetime value (LTV)

Additionally, while Access Protocol allows creators to set the minimum threshold for ACS staked in a particular pool, it does not have a limit on the maximum number of tokens staked. This creates the ability for super stakers to pledge well above the minimum threshold of staked, yet again resulting in higher ARPU, decreased likelihood of churn, and higher user LTV.

Creating a multidimensional platform for audience engagement

The Access creator dashboard will provide visibility into which users are their most loyal and long-standing supporters. Layering in value add strategies such as NFT drops, access to exclusive events, bonus features for super supporters, and other incentives, further strengthens the relationship between creator and consumer. This reimagined relationship between creators and consumers creates an environment for unprecedented levels of loyalty where creators have the ability to interact with their audience beyond the confines of a one-dimensional subscription service.

The Access Foundation

The Access Foundation is a non-profit organization created to grow the Access Ecosystem, and in turn, help creators succeed in implementing Access Protocol into their business models.

Reach out today to learn more about Access Protocol and how the Access Foundation can provide support as you leverage Web3 to provide more value to your users and create new revenue streams for your business.

To learn more about The Access Foundation and its goals check out our blog post where we cover topics such as:

• Community grants programs
• New protocol technology
• Governance roadmap