The content creation ecosystem has seen unprecedented growth in recent times. According to analysts, this growth is a result of the onslaught of the Covid-19 pandemic as well as the ensuing lockdown. Also, content creators have to rely on centralized platforms to monetize their content.
NFTs, however, introduce a more effective and sustainable way for creators to monetize their content. In this article, you will discover how Web3 will revolutionize the content creator industry, and the role NFTs and DeFi can play to usher in a new web 3 world.
Growth of The Content Creator Industry
According to a Twitter thread by Francesco Ciulla, the content creation space’s growth has been exponential over the last couple of years. In his tweet, he discloses that Spotify currently has 11 million artists with about $7 billion distributed as earnings to content creators. This means artists earn approximately $636.
A thread on how Web3 is changing the world.
Spotify: 11m artists and $7B to creators for an average of $636/artist
Youtube: 37m artists, and $15B to creators for an average of $636/artist
NFTs: 22.4k artists, and $4B to creators for an average of $174K/artist 🤯 (no typo)
— Francesco Ciulla (@FrancescoCiull4) June 16, 2022
Also, YouTube has about 37 million content creators. The platform distributes about $15 billion to artists, that is, also averaging $636 per artist. However, NFTs nowadays have about 22,400 artists with total revenue of $4 billion dollars. Therefore, amounting to an average of $174,000 per artist.
We all know the obvious earning differences between centralized platforms like YouTube and NFTs traded on decentralized platforms. On one hand, earning on platforms like youtube is a herculean task. Creators need to amass viewers and create hundreds of videos to be able to earn some form of notable earning.
Therefore, to earn a reasonable income from their content, these creators need additional ways to monetize their content. Some of these alternative ways include:
- Selling Items or merchandise online
- Branded deals and paid partnerships
- Touring, etc.
These additional ways to earn from content creation, however, require a lot of effort and time. However, NFTs provide a workable solution to these issues. Providing content creators with a better value for their content. Let’s analyze it better in the following lines.
NFTs to Revolutionize Content Creation
When compared with centralized platforms, NFTs provide a sustainable and reliable alternative to monetizing content. The beautiful thing about NFTs is that the value of a particular content is determined by the market. Fans and supporters of a particular art will have to bid for it. Therefore, determining the price at which it would be sold without any external influence. Creators will also receive royalties tokens. This means that anytime the NFT is sold, some amount will be sent to the original creator.
A perfect example of how to monetize your content using NFT is by RAC. The Grammy award-winning recording artist has earned about $40,000 by selling unique copies of a single song to 100 fans. To earn this amount on a platform like Spotify, he will need to have about 9.75 million plays.
It's Fall of 2020.
Consumer interest in crypto is exploding.
Music NFTs haven't meme'd into existence yet.
ETH is $400.@RAC and I are working on a new concept for music and crypto, using non-fungible tokens called Via Color.
By every measure the ecosystem has grown since. pic.twitter.com/RpkOLjY3Mp
— Jack Spallone (@JackSpallone) June 15, 2022
In conclusion, while the NFT space is truly innovative, it is still quite nascent. This means there’s still a lot of work to be done to usher in the Web 3 world.
We need tools that will help support content creators to;
- Power the NFT drop.
- Build a wider Web 3 ecosystem.
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