In recent years, the content creation industry has grown at a rate that has never been seen before. Analysts say that this growth is due to the spread of the Covid-19 pandemic and the lockdown that followed. Also, people who make content have to use centralized platforms to make money off of it.
NFTs, on the other hand, give content creators a better and more stable way to make money from their work. In this article, you’ll learn how Web3 will change the industry of content creators and how NFTs and DeFi can help bring about a new Web 3 world.
Getting more people to make content
Francesco Ciulla said in a Twitter thread that the growth of the content creation space over the last few years has been exponential. In his tweet, he says that Spotify has 11 million artists and gives about $7 billion to content creators as pay. This means that artists make about $636 a year.
Also, about 37 million people make videos for YouTube. The platform gives about $15 billion to artists, or about $636 per artist on average. NFTs, on the other hand, now have about 22,400 artists who make a total of $4 billion dollars. This means that each artist got an average of $174,000.
We all know that centralized platforms like YouTube make more money than decentralized platforms where NFTs are traded. On the one hand, making money on sites like YouTube is hard. Creators need to get a lot of viewers and make a lot of videos in order to make a decent amount of money.
So, for these creators to make a decent living from their content, they need to find more ways to make money from it. Some of these other ways to do it are:
- Selling things or goods online
- Paid partnerships and deals with brands
But these other ways to make money from content creation take a lot of work and time. But NFTs offer a good way to deal with these problems. Giving people who make content a better return on their work. Let’s think about it more in the lines that follow.
NFTs will change the way content is made
Compared to centralized platforms, NFTs are a more stable and long-term way to make money off of content. The best thing about NFTs is that the market decides how much a piece of content is worth. People who like a certain kind of art will have to bid on it. So, without any outside influence, figuring out the price at which it would be sold. Royalty tokens will also be given to the creators. This means that when the NFT is sold, some of the money will go back to the person who made it.
RAC is a great example of how to use NFT to make money off of your content. The recording artist who won a Grammy has made about $40,000 by selling 100 unique copies of a single song. On a platform like Spotify, he will need about 9.75 million plays to earn this amount.
In the end, the NFT space is very innovative, but it is still very young. This means that a lot of work still needs to be done to make the Web 3 world a reality.