Imagine a digital screen without content. You can’t, because every moment we spend on a smartphone, PC, tablet or smartwatch is enriched and made vital with digital content: images, text, video, audio, product reviews and more.
Which raises two very important points (we have in our White Papers discussed both):
1. The creators of content have to get paid, or the value and relevance of content will deteriorate.
2. The content must be highly relevant: – It’s the essence of customers experience and their digital interactions.
Relevant and quality content makes a cornerstone of the user experience.
And the users’ expectations follow a simple law: they always increase over time.
To combine the two point is not only challenging, but it’s also very costly!
Which is why NIM created the Content as a Service (CaaS) concept to secure the creators of content (starting with music) a reasonable income. At the same time giving the Digital Service Providers (DSPs) easy access to licensed content.
However, the challenges in putting together a highly specialised user experience (for example) in the streaming of music and near real-time payments of royalties more often than not created massive extra cost that is difficult to defend in a very marginal business.
Which is why NIM has created the The White Label Content Mesh (WLCM).
The content meshes stitches together content systems in a modern development environment while optimising website delivery for performance.
Performance is what everything is measured in today.
As mobile surpasses 60% of internet traffic, high-performance is becoming a must-have, not a nice-to-have.
Besides, we see that:
1. Modular, functional content systems are replacing monolithic CMS applications.
2. Modern UI frameworks like React are becoming essential to rich user experiences.
With the introduction of the White Label Content Mash (WLCM), we are giving (again starting with music) the DSPs as well as the Copyright and Content owners an easy and well-defined interface. Content owners can register content with provenance and DSPs can access fully licenced content and easily pay royalties.
The content owners get their royalties, more and faster. And the DSPs can concentrate on marketing and the end-user.
Without the WLCM, the DSPs are hard pressed to make a profit.
Let me illustrate the concept with some examples…
Some real-world examples: WLCM in the music industry.
The Organisation of Famous Songwriters (TOFS)
TOFS is an independent professional association representing music writers in all genres. TOFS offers benefits for their members and is tirelessly campaigning for their member’s rights and benefits.
However as the digital age is taking hold and more and as more royalties are paid from online and digital services, the member numbers are starting to decline.
Which is why TOFS have decided to offer their members a full package of “More money, faster – for owners of Copyright.”
For a lower administration fee than most competing collecting societies TOFS is handling all digital and online royalties payment (typically 5-9% administration fee)
In effect, NIMs WLCM and the MaaS (Music as a Service) make sure the royalty for a song played via a DSP is paid to the account (wallet) of the Copyright owners before the song has ended.
This payout of royalties is made possible by retracting all digital rights from (for instance) PRS for music and placing them at TOFS. Exclusive administration rights give TOFS the opportunity to offer advances against the flow of royalties.
The copyright owners are providing TOFS with proof of royalties flow for the last five years. TOFS will then be advancing CREATIVES (CCIM) (through IMCA – the governance body of CCIM) to the writers of music for this exclusive administration right.
All existing PRS for music registration is pulled from the database and automatically registered on the CopyrightChains sub-chain CopyrightShares in a batch job and presented as TOFS own service solution (see an example of this under Existing Independent music publisher below).
This new service is proven very popular among the existing members of TOFS, and new members are joining up from all over the world.
New Independent music publisher.
The music publisher is just starting with new songwriters recently signed up.
All their work will be registered on CopyrightShares (sub-chain of CopyrightChains) with each creator registered with the agreed share on the CopyrightShares sub-chain.
There is no public trading of musical works (secondary market), so no DEX is included. The company has an experienced staff of WordPress bloggers, so it is decided that most of the companies presentations are done within the WordPress user interface.
The NIM WLCM creates a new website that is more than 50 times faster and still primarily maintained under WordPress. At the same time allowing existing creators and new creators that the company has signed up to register their musical work directly together with the CCIM wallet (account) so royalties are paid directly to the creator(s).
Also, there is a showcase of music samples for any artist that is seeking a song to record.
Existing Independent music publisher.
The company has been in business for 25 plus years and has a stable portfolio of Copyrights registered in the PRS for music database with all metadata and payments also registered in an internal MySql database. Some of the musical works are part of the companies back catalogue and have a proven track record of more than five years.
When signing up for the NIM WLCM, they are giving NIM and the Music as a Service (MaaS) an exclusive administration right for the next ten years.
The company provides NIM with proof of royalties flow for the last five years with an average of 750 000 Euro per year. NIM is advancing 7.5 million CREATIVES (CCIM) (through IMCA) to the company for the exclusive administration right with security in the royalties flow.
All existing PRS for music registration is pulled from the database and automatically registered on the CopyrightChains sub-chain CopyrightShares in a batch job.
However, due to the delay in the legal withdrawal of digital rights from PRS for music direct royalties flow will not commence until the 3rd quarter of 2019. In the meantime, all payouts from PRS for music goes to an escrow account. During the first two quarters of 2019 a total of 687 900 Euro in royalties are paid into the escrow account. The exchange rate of CCIM to Euro is at that time 1.97 Euro per CCIM.
So, the publishing company are exchanging 685 000 CCIM for a total of 1,306,980 Euro (1,349,450 minus transaction fee and bank fee for CCIM/Euro exchange). The publishing company has made a net exchange profit of 621,980 Euro.
The CCIM is stable at 1 CCIM = 1 Euro basis, and 685 000 CCIM are back in the IMCA care to be used in another advance scenario.
The publishing company is also frequently trading copyright shares as a way of funding new catalogue acquisition which has often proved both costly and cumbersome with a cloud of lawyers involved. Since the publishing company is Swedish, the Swedish parliament recently passed a law that Copyright registration (musical works and recordings alike) is regulated under the Swedish stock exchange laws as a secondary market (NB! It’s a fictive scenario, the law has not been passed (– yet)).
The NIM WLCM is, therefore, able to set up a white labelled DEX for trading in only the publishing companies own copyrights and shares.
The company’s Copyrights and shares are also available for the general public to trade on the standard exchanges supported by the CopyrightChains.
The company has set up a showcase site for any artist is seeking a song for a new recording.
New Independent music label.
A very tech savvy partnership runs the music label startup, and all online company presentation and marketing are based on the programmatic business model.
The programmatic business model favours profit margin over turnover.
All new recordings are registered directly on the CopyrightChains sub-chain CopyrightShares, and all royalties are paid in CREATIVES (CCIM).
To maximise cash flow, of all the shares registered on the CopyrightShares sub-chain 25% are always publicly available to boost viral marketing and to raise fiat money (Euro) to pay recording, producers, studio musicians, video crew, studio rent and marketing.
Recording and release.
After finding a new song at the music publisher and selected an artist to record the song the music label register the song on the CopyrightChains sub-chain CopyrightShares. Registration of the recording is done with 63% of the shares to the music label, 25% is offered to fans in crowdfunding and 12% of the shares to the Independent Music Publisher. The released track itself is loaded into NIMs MaaS (Music as a Service) for distribution to DSPs.
All royalties are now sent directly to the music label’s wallet as well as the 25% that are bought by external fans and investors plus 12% for the musical work. The 63 % that are sent to the labels’ wallet is distributed internally to the artist according to existing contractual agreements.
Old Independent music label
The music labels old presentation site is build over an old framework called Drupal and all staff involved in maintaining the website are familiar with the administration interface in Drupal. The management decides to keep the Drupal administration interface for the time being. Which is not a problem for the “new” site ads the white label solution from NIM pulls all the necessary data from the Drupal site and present it on the new site.
After finding a new song at the music publisher and selected an artist to record the song the music label register the song on the CopyrightChains sub-chain CopyrightShares. Registration of the recording is done with 88% of the shares to the music label and 12% of the shares to the Independent Music Publisher before release and marketing. The released track itself is loaded up to the Orchard for distribution to DSPs.
However, that does not take advantage of the CREATIVES payment service of royalties, and the cost for distribution through the Orchard is on the wrong side of 15%.
Consequently, the management decides to transfer the old website to the new site and take advantage of the CopyrightChains ecosystem to offer their recordings to the DSPs through NIM and the MaaS.
The challenge is that all metadata for the existing recordings is recorded on a spreadsheet indexed on ISRC ’s. This is not a problem for the NIM WLCM as the ISRC’s are mapped to the hash address registered on the CopyrightChains and imported into a distributed database.
All royalties are now sent to the music labels wallet (except the musical work) and distributed internally to the artist according to existing contractual agreements.