NFTs, Creators, and their Angels (Investors)
We are in an era where original content and blockchain is leading the trend: an era of “custom value”.
In 2019, Contentos launched COS.TV, a blockchain content platform, to help original video creators in Latin America, Russia, Vietnam and other regions use blockchain technology to transcend the traditional limits of “view count, subscription” monetization mechanisms to achieve higher profits. Contentos is now looking to combine the huge potential of NFT(Non-fungible token) applied to “copyright monetization innovation” and “participation in the early investment of original IP”.
Copyright transfer has always been a major pain point in content creation. Old and outdated norms and mechanisms restrict too much creativity and cannot keep up with the rapidly changing content creation ecosystem. An incredible number of original videos are published on various platforms every day, but the ownership of these contents cannot be simply transferred or traded. More importantly, the profits from the content usually cannot follow the transfer of content ownership and easily change hands.
Today, creators of high-quality videos on YouTube or TikTok cannot easily transfer the ownership and revenue of their content to another user. Creators cannot quickly realize the benefits from the content by trading its copyright, and can only wait for a very long time to accumulate views in exchange for advertising revenue. This also makes it difficult for many investors who can recognize high potential content and know how to market and promote the content to invest in the copyright early on, which can foster high-quality content creation and create high returns for the investor.
All of this can be resolved through the NFT tokenization of video content. NFT will create completely different possibilities for video creation and value investment. For example:
After each video is uploaded, a corresponding unique and exclusive NFT token can be minted. This token will be used to record the ownership of the video (copyright), and the original creator will be the initial owner of this NFT token.
When this NFT token is transferred to the next owner, the ownership of this video will also follow the transfer. This transfer action must be combined with the storage of the video itself, which is why the Contentos mainnet is the best public blockchain for recording content ownership, because Contentos itself already contains all relevant information about the content and creators/users.
This combination cannot be fully guaranteed on other centralized content platforms today, because the content and ownership information on YouTube or TikTok, for example, cannot be easily combined with a public blockchain.
Transfer of Revenue
When you own a video NFT token, the corresponding income from the content, such as advertising and user rewards, will be sent to the NFT token holder. So when the creator transfers NFT tokens to another user, all future revenues generated by this video will be sent directly to the NFT token holder, not the creator.
Since COS.TV already has video advertising and gift ticket reward functions, it will be a very natural and simple design to combine NFT tokens with transfer of revenue. This cannot be easily done on any other content platforms and public chain, and is a major benefit of the COS.TV platform.
It is our plan to allow content NFT tokens to be freely issued on other public blockchains according to the needs of creators, such as the Ethereum Network, Binance Smart Chain, Polkadot, and Contentos Mainnet, so that creators can freely circulate their content copyrights on various mainnets.
Of course, some mainnets, such as the Ethereum Network, already have very mature NFT trading markets. All we need is to allow creators to list their video NFT tokens to complete the ecosystem. If there are no mature NFT trading markets on other mainnets, we plan to create the markets ourselves.
Our ultimate goal is to “divide copyright”. Dividing copyright will allow investors who are willing to invest in content NFTs to diversify their risk, and it will also allow general users to have more opportunities to participate in the benefits of holding a popular content copyright.
In the future, creators will be able to leverage content NFTs to issue a limited number of content tokens allowing a large number of users to hold and share revenue from the content. If the NFT token needs to be traded to the next owner, investors can liquidate and exit their positions.
Furthermore, creating new content tokens by staking content NFT tokens can also enable creators to realize part of the content value early without giving up their content copyright, increasing revenue flexibility and motivating the creator to produce high-quality content creations.
On the flipside, a group of small investors could raise funds to bid for a certain popular content NFT token. If the bid is successful, the future content income can be distributed according to the investor holdings. This will be an innovative breakthrough in the content creation industry.
Here is what we are going to do next.
In the next few weeks, Contentos and COS.TV will release a series of product features to show how NFT can truly solve the problems of copyright and revenue transfer for video content. We will test the features by inviting a group of core creators, and gradually expand them to allow every user to issue NFT tokens for their own video creations and freely trade and circulate them in the market.
We will also invite top internet celebrities to try our new NFT functions, combining big IP and original content tokenization, so that global users can experience the unique benefits of NFT in content copyrighting and transactions.
NFT is the future for content creation and we are dedicated to bringing value back to creators one NFT at a time.