Contents Protocol will solve the chronic problem of the premium content distribution industry by:
Contents Protocol is a decentralized premium content exchange protocol on which Content Provider, Platform, and User can sustainably coexist and cooperate
Making data transparent for the content makers because they can make better content with the valuable user data that’s currently black-boxed in the platforms
Compensating and incentivizing the users because they have never been rewarded even though they are the data givers
What does the company/project do?
Contents Protocol is a content exchange protocol on which Content Providers, Platform, and Users can sustainably coexist and cooperate.
The current traditional platforms enjoy strong growth due to users consuming the content produced by content creators. However, content creators only receive a small portion of the income that the platform earns. There’s also a lack of transparency in which the revenue is distributed to different stakeholders.
Contents Protocol try to change that by distributing over 75% of the total license fee to the content creators. The platform will only keep 5-10% of the total income, with the rest being distributed to users who consume the content. This way, all the stakeholders benefit from the growth of the ecosystem.
The image below shows how Contents Protocol works in a nutshell:
Contents Protocol
The project will be providing fiat support to aid in adoption early on, with a portion of content sales from the user being converted into CPT tokens.
Contents Protocol aims to distribute profit margin accumulated in centralized content distribution services to content creators and consumers. Contents protocol is a new product of WATCH Inc. that has attracted 3.8M users with 380M reviews over the last 6 years in South Korea and Japan. WATCHA provides content recommendations based on user’s rating of movie, TV series, animation, variety show, documentary, book and etc. Also, it has Subscription Video-on-Demand service with music streaming service. The developing product dealing with content distribution perfectly aligns with the company profile and may turn a good fit for its strategy. Contents Protocol seems to understand the market and considers investing/acquiring existing 3rd party platform operators as a possible option for growth. As some researchers state, the Asian VoD market does not suffer from high premiums accumulated in the centralized content distributors as consumers tend to pay more and more for video content, that results in overall market growth. As an example, South Korea’s VoD market (TVOS and SVOD segments) is projected to more than triple to $433m in 2021 from $142m in 2016, according to IHS Markit. Blockchain applied is likely to upgrade some operations but not to determine the market leader. But blockchain may help to significantly decrease the price for the subscription that is already is one of lowest on Korean market - Watcha Play's fee is cheaper than Netflix's minimum 8 USD charge - 4.3 USD, giving the same amount of local and foreign content. It is also must be taken into account, that Watcha is one of the biggest content distributors in South Korea but is far from being a leader
Contents protocol is likely to be a kind of a Video-on-Demand service with the Subscription (SVOD) and/or Transactional (TVOD) model. Blockchain here will help to set transparent conditions for content distribution that will eventually lead to an open source reference platform for each content category of TV, Music, Comics, and E-Books will be launched for faster expansion. For a user, Contents Protocol operates in the same way as centralized platforms, even with fiat, without having any prior knowledge about cryptocurrency. Experienced users can have multiple reward streams - more CRP will be staked when the users pay for a content with CPT token instead of fiat and when users want to make an additional staking on promising contents. In addition, users can get additionally rewarded for becoming a platform evangelist, reviewing content, curating content and promoting content outside the platform, etc. Whitepaper is not available yet but WATCHA is open providing details and estimated financial information. Initially, only WATCHA TV will be integrated with Contents Protocol
Finances
Contents Protocol aims to attract 40,000 ETH (30,000-35,000 ETH for Private Round). There won’t be any Pre-sales or Public Sales. Investors are offered 20% Bonus with 6 months vesting (40% immediately after token issuance, 40% after 3 months). Maximum market cap is about 70M USD that seem to be overvalued considering previous investment rounds since 2012 and most of the work already done. Watcha explains how will token distribution be arranged. Content providers will get 70-85% of the license fees that is two times higher than the market average percentage. The platform (Contents protocol) will hold only 5-10% of license fees. It is not clear how current total users are calculated so it is not possible to calculate the estimated revenue. Some of the tokens will be distributed with Bounty that we consider as a red flag. But the projected bounty campaign is likely to be an exception as tokens will be given to current WATCHA users that will definitely stimulate the involvement in the new blockchain product. Contents Protocol is backed by David Lee, Hashed, KakaoVentures, Signum Capital and others.
Team
The team includes about 40 members with all the required roles filled but the majority of them do not indicate their LinkedIn page so that we could track their background. The crucial achievement of the team is their joint work under Watcha for 6 years - they built a company that is among the market leaders and provides the service in demand. Lots of team members do not have significant experience before Watcha. By the way, the team includes some distinguished people like Teddy Zee, former Vice President in Columbia Pictures and Paramount Pictures. It would be rational to attract an experienced blockchain developer
memberTaehoon Park (CEO) memberAlex Jihyun Won (COO) memberTeddy Zee (Head of Content Relations) memberDan Bee Chai (Global Business Developer)
For more information about the ICO, please visit the following links:
Website: https://contentsprotocol.io
Whitepaper: https://drive.google.com/file/d/1F-iiyB8Uwx0poMvaYYpTqWof3_jc5G3M/view (one pager)
Telegram: https://t.me/ContentsProtocol
Eth donation : 0xcbb74e8eabcd36b160d1fc3bed7bc6e52d327632
