A creator I know told me a year ago that only 10% of the value his TV show created for a streaming platform was retained by him. 90% ended up being the 'take rate' of the platform. We worked on the calculation together, and here's what we concluded:
• His fee was $200K
• His social media following was over 10 million, who he persuaded relentlessly to come to the platform to watch the show
• The lifetime value of a subscriber to the streaming platforms as per research reports published was in the range of $200 to $300
• Even if 1% of his fans subscribed because of his show, i.e., 10,000 fans, the platform makes $2-3 million
• The platform's take rate is 90%, and to add insult to the injury; they keep the IP as well
But premium creators now have a way to retain a vast majority of their value. Combination of video-on-demand SaaS platforms, fintech developments like easy micro-payments, transparency and token action through blockchain, rapid growth in crowd-funding, growth in direct fan engagement, transactions and tipping, etc., are creating a new “Creator Economy”. The 'take rate' can now be taken if they choose to take some risks and embrace 'Media 3.0', a transformational Web 3.0 model for the Media & Entertainment industry.
Media 1.0 was all about powerful distributors who controlled the screen and the time of viewing, as in movie theaters and cable TV. In the last decade Media 2.0 came alive when the streamers came of age. The time control was gone, and the creators benefited from getting quick access to a large global subscriber base. However, the new breed of global streamers has become even more powerful, and they control a bulk of the value.There is a third way coming together now which promises to change all that.
Media 3.0 will be the phase when creators armed with the new video-tech, fintech and blockchain technologies engage and transact directly with their fans to conceptualize, distribute and monetize content. The technology is ready. The creators are gearing up. The fans are waiting. That’s why we created RainBlox. A Media 3.0 platform for creators to finance, manage and monetize their content, all of which through active participation and support from their fans.
Over the next decade and beyond, Media 3.0 options will offer a credible alternative to take back the 'take rate' that creators often give up in Media 1.0 and Media 2.0 .