You Have To Believe It To See It

This is what a sustainable video platform built around micropayments looks like.

In my previous post about PopChest, I outlined why I feel the burning desire to upset the status quo in media distribution and revolutionize one of the biggest industries on the planet. TL;DR Ad-supported content is a 94-year-old business model that needs to be challenged.

But if commercials go away, how are content creators going to generate enough revenue to make videos that are worth watching? We’ll do the math later but, first, let’s get a few things straight…

The current system screws over a lot of people.

“They f#ck you at the drive thru!” | Lethal Weapon 2

There are countless stories of “popular” online celebrities that struggle to make ends meet. Sure, the ones at the top are doing just fine. But they are the far-off illusion that keeps everyone running on the treadmill, grasping for a future that never gets any closer. Think of it this way: If all the videos where creators don’t make meaningful money were removed from YouTube, how much do you think the service would gross annually? Probably significantly less than the $8.5 billion it is bringing in now.

You are generating value, just not for yourself.

That doesn’t even begin to address the ugly problem with international content. Simply put, viewers in non-Western markets are valued much less (if valued at all) than their American and European equivalents. I experienced this first-hand after directing a short documentary on bitcoin in Argentina called “Bitcoin: Buenos Aires”. Despite thousands of views throughout the Spanish-speaking world, the video has made less than one dollar! The pursuit of international ad revenue is so pointless, I turned monetization off entirely.

The ultimate insult. | Chappelle’s Show

So, most of the world is not served by the current ad-supported model for online video. Many people making quality videos (often niche) are being left in the cold because they don’t attract a mass audience (often least common denominator). And, the value that is generated by content enriches the host platform before it, maybe, gets trickled down to the actual creator.

Just because someone puts sh#t on your plate, doesn’t mean it’s time for lunch.

We don’t have to settle for this. Imogen Heap talks about bringing “fair trade” principles to media where producer and consumer share in a harmonious relationship, rather than having middlemen exploit the arrangement. PopChest couldn’t agree more. So, here’s what our “open micropayments platform for video” means for you, the content creator:

You get paid first, in real-time, for every video view.

The Blockchain is a wonderful invention that lets us instantly move tiny amounts of value between parties with complete transparency. Today, the practical minimum price per video view is around $0.10. As PopChest rolls out bitcoin micropayment channels this will drop to fractions of a penny, making the value proposition to viewers even stronger.

And, because we use bitcoin as “programmable money”, PopChest never needs to hold client funds to execute a transaction. We are completely non-custodial. That means money goes directly from viewer to publisher in real-time.

The implications are massive.

For example, let’s assume 1000 ad-supported views generates $1 in actual revenue for a content creator (…knowing that not every video view gets an ad, some ads are blocked, and minus the platform’s share).

Since PopChest gives you the ability to charge $0.25 per view, you would only need 4 people to break even rather than one thousand. Picture yourself in a room full of 1000 people trying to be heard. You’d have to scream! Contrast that with a room of only four people. It’s much more intimate. You don’t have to yell to get attention, you just need something interesting to say.

Inside Amy Schumer | Comedy Central

The economic need to aggregate a mass market audience inevitably leads to particular kinds of content gaining supremacy. I know. I used to edit The Real World on MTV. ProTip: never, never, NEVER get into the hot tub.

But when eyeball aggregation isn’t the primary goal of creating content, different properties can emerge. Subtlety. Nuance. Thoughtfulness. With micropayments, serving narrow niches can be just as economically rewarding as being subservient to popular trends.

Furthermore, if you are fortunate enough to attract a mass audience then whatever platform you’re on is most likely undervaluing you. Using our example above, out of 1000 fans I’m sure you could find more than four to give you a quarter. My guess is there are a lot more that would give you a lot more. Find your most passionate supporters and give them an easy way to show you love!

Ultimately, this is what PopChest is all about…connecting fans with artists they love. So when doubters say, “But not enough people use bitcoin. This will never work!” it’s important to understand how we view the problem:

Right now, we don’t need everyone to have bitcoin. We just need your viewers to have bitcoin.

It’s not about technology, it’s about passion. Does your viewer’s desire for this particular content from this particular person at this particular time outweigh the minimal effort it takes to obtain digital currency? For many, the answer will undoubtedly be “no”.

But, for artists with 1000 True Fans, PopChest will provide a path to sustainability that simply did not exist before micropayments. Every individual now has the same power to monetize their content as the largest television network or the biggest video sharing platform. This is the ultimate empowerment for creatives.