‘Smart contracts’ leverage blockchain for content payment
February 1, 2019
By Colin Mann
Technology and content start-up Fiction Riot has partnered with non-profit foundation DECENT, a global provider of blockchain technology, to become one of the first streaming services to pay royalties utilising blockchain. The resulting ‘smart contracts’ are designed to deliver genuine transparency of payments in US dollars for all parties involved in production of streaming content featured on Ficto, on par with industry standard studio rates. Ficto will run on DECENT’s proprietary blockchain platform, DCore, which can facilitate over 2,000 transactions per second.
Through the use of ‘smart contracts’, Fiction Riot is addressing broader entertainment industry challenges related to compensation. By recording transactions over blockchain’s secure and encrypted platform, Ficto pays royalties in near real-time, directly to artists based on how often their content is viewed. Because the formula is agreed upon upfront, everyone involved in production is paid in a fair, consistent and timely manner.
In addition, Ficto is the first streaming service to build its blockchain revenue share to provide direct, verifiable ROI to outside production capital. Plus, compared to traditional theatrical backend, Ficto provides a faster, safer return eliminating hassle commonly associated with standard recoupment.
“Streaming media services predominately pay a single upfront fee for the right to stream an existing or original film property, which essentially cuts the artists out of royalties on content that generates heavier viewership,” explained Mike Esola, CEO and Co-Founder of Fiction Riot. “Whether for economic or technological challenges, this quickly became the norm. Now that blockchain is much more pervasive and mature, we saw an opportunity to course-correct this practice with trusted, automated smart contracts that take the mystery out of artist compensation for streaming media – ensuring payment is on par with the amount of viewers they attract.”
DECENT says that DCore is the first blockchain tailored for the entertainment industry that empowers artists to produce content as they desire, earn as much as they deserve and truly understand their audience. Through its openness and transparency around consumer viewing and corresponding payments, DCore securely delivers robust real-time data to help creators instantly see what’s resonating with their audience, allowing them to continue to produce better content over time.
“Fiction Riot’s bold move to embrace blockchain is ushering in a new compensation model for streaming media, bringing a fresh vision to the entertainment industry,” said Matej Michalko, Founder and CEO of DECENT. “We’re excited to apply the security and efficiency of our DCore platform, removing traditional complications associated with payments, making them more transparent and trusted in Hollywood.”
Ficto enables a highly engaged user experience for its serialised fast fiction by leveraging native mobile features such as vertical video, 360 viewing, AR, chat and live streaming. The platform’s proprietary technology allows Hollywood content creators to seamlessly combine traditional video assets with mobile-first applications through a ‘toolbox’ approach.
Ficto will be available to consumers in spring 2019 and currently has twenty series in production, representing a balance of original and licensed content. In the meantime, Fiction Riot is meeting with content creators to secure and develop its second round of series to follow shortly afterward.