1️⃣Introduction - The Problem

An overview of the current industry and sample problems Ample is solving

The Financial Side of the Media & Entertainment Industry

The Media & Entertainment industry, as it stands today, is struggling to keep up with a fast-paced creator economy that is accustomed to instant transactions and quick evolutions. For example, while purchasing stocks in a company used to require an individual to call a stockbroker by phone to place a trade request, but the stock traders of today can purchase and sell shares of a company from their phone in a matter of seconds. Bonds, ETFs, money markets, and even real-estate have evolved to the demands of a 21st century economy [1,2] – so why hasn’t the Media & Entertainment industry done the same?

To understand where the industry is falling short, it’s helpful to remember how it works today. Currently, most professional creators usually work with multiple third-party studios, networks, labels, agencies or companies to fund their productions, promote and produce their creations, control and manage their distribution, and then secure favorable venues/publishing/merchandise deals for their bodies of work. These exhaustive and fragmented processes create a convoluted system that is easy to exploit. For example, a musician may work with a record label to record a song, distribute it to their fan base, and secure concert venues. Their record label negotiates with them a certain amount of royalties they will earn for future uses of their song, which will be paid to them periodically; usually about six months in arrears. And with limited global alternatives due to lack of framework, brands, studios, creators and communities have limited monetization plus inclusion opportunities.

There are several flaws with the status-quo as it stands today. How often are royalty payments made? Are royalties being tracked accurately, or are payment opportunities being missed? Can an artist easily transfer their intellectual ownership of their art – and their right to royalties – to someone else? Can an artist easily transfer just a portion of their royalty rights to someone else? If someone gains the right to royalties on a piece of art, are they then able to resell a portion of their royalty rights? How about a portion of a portion of royalty rights – is that possible?

As displayed in Fig. 1, royalties are cumbersome to work with, and the current system of intellectual property ownership, attestation, and transfer is difficult to manage. This is barely scratching the surface of the problems that plague the financial side of the entertainment industry – what about entertainment and creator economy financing, too?

Whether it be a new movie, a musical album, a metaverse or art exhibit, or something else, getting the funds required to hire staff, create the art, market the project, set up legal documentation and perform any production required can be a daunting task. While some brands and creators with a proven track record will find the fund-raising aspect of creation easier, the vast majority of artists find this to be much harder to succeed at. Usually, the only way to secure enough funds to complete a project is to surrender a large percent, and in most cases with films and shows, all of future royalties or ownership to a centralized financing body. This is a bad deal for most artists, creators and production companies, but it is often the only way. ​​Imagine if filmmakers, show producers, and video-focused creators retained even 10% ownership rights; based on the current global Media & Entertainment industry stats, this would equate to approximately $200 million going back to the creators. [3] It’s worth noting that this doesn't even take into account additional revenue stream sharing from future licensing, merchandising, etc., meaning that creators could stand to make substantially more money if there was a system in place that adequately supported and protected them globally.

What if things could be better than they are now?

What if there was a better way to raise funds? What if the entertainment industry could modernize - or tokenize - its intellectual property ownership, multi-marketplace and streaming platform distribution, and financials, thereby creating new ways to raise money, track ownership, track streaming engagement, transfer royalties, and everything in between?

The on-chain media management and distribution systems being built by Ample will provide technological advancements for the Media & Entertainment industry, offering new solutions to fix current legacy system problems, while supporting new and inclusive creator economy models.

Web3, Blockchain Technology, and Cryptocurrency

Since its creation in January of 2009, Bitcoin has revolutionized how the world imagines money, information, and security. Bitcoin’s claim to fame was its use of blockchain technology – a distributed, decentralized, immutable ledger that allowed peer-to-peer financial transactions. Blockchain technology has rapidly matured in recent years, spawning thousands of other cryptocurrency projects with new takes on blockchain technology.

In the past two years, the latest aspect of the world of cryptocurrency and blockchain technology to come into focus has been Web3. Acting as a new layer on top of the traditional Web2 Internet that we are all familiar with, Web3 technology offers a way for various decentralized applications to interact with each other while leveraging existing Web2 interfaces.

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