Sale of licensed content with the calculations "by weight"
In my short report at Telecoms Russia & CIS 2008, I told colleagues about the business model for selling music and video through a communication network described below. I want to know the opinion of Habraludey on this topic.
In order for us to instantly get a just-released music album or video film legally, the effective interaction of the following participants in the business process is necessary:
• Telecommunications operator
• Copyright Holder
• Payment system
• Content provider
Let us briefly consider the role of each of the participants.
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The carrier provides the delivery of content to the subscriber on his multimedia player. As a multimedia player, subscribers are increasingly using mobile devices.
The right holder “creates” multimedia content and has the rights to sell and distribute content. Let me remind you that the distribution of music and videos without respecting related rights is a crime against someone else’s property and may entail financial sanctions and sometimes even criminal penalties.
The payment system is necessary in order to receive money from the subscriber for the sold content. Currently, the Internet is usually used bank cards and electronic payment systems. If we talk about the sale of content in the networks of mobile operators, the role of the payment system is performed by the operator. We believe that the model is optimal when, when selling multimedia content, the telecom operator assumes the role of the payment system.
The content provider organizes the sale of content by the right holder through the operator’s communication networks. The most appropriate analogy is to compare the role of the content provider with the role of the catalyst in chemical reactions. Without a catalyst - the “reaction” will be, but its speed will be very slow. So with the sale of content. The operator and the copyright holder can "directly" agree on the sale of content. But sales schemes created without the participation of a content provider are very often less profitable than sales schemes of the same content created by content providers. This is explained by the fact that neither for the operator, nor for the right holder, the organization of sales of content through communication networks is not the main business function. Therefore, there are very few successful transactions for the sale of content made “directly”, and they are often unequal in nature.
The growth of revenues from the sale of multimedia content in digital form is hampered by piracy and the lack of a sales model, which could be beneficial for both telecom operators and rights holders.
The fight against piracy will leave for law enforcement. Let's talk in detail about the business models of content sales. Briefly describe the existing models and their inherent problems.
Distribution of content without copyright and related rights (piracy). The problem of this model is violated Russian and international legislation. For violation of the law, sooner or later you will have to bear responsibility (for example, to pay a “fine”). The main problem with this model is that the right holder and the carrier do not receive their share of the revenues.
Distribution of content without the participation of the operator in the income from the sale of content.
Examples include online stores such as iTunes, amazon.com and yahoo.com. The main problem with this method of content distribution in Russia is that subscribers are charged with bank cards. Although in Russia, bank cards are widespread, they are practically not used on the Internet. Due to national identity, our citizens prefer cash. This is the reason for the wide distribution of instant payment terminals in the Russian Federation.
Given that the number of subscriber accounts with telecom operators has exceeded the population of Russia, we can conclude that almost every resident of Russia has a "bill" with one or several telecom operators. At the same time, according to statistics, less than 30% of adult residents have bank cards and less than 1% use cards for online payments. The model of selling content without a telecom operator’s participation in revenue is not interesting to the telecom operator. As we know from practice, the use of different payment systems for the sale of content than a “personal account with a telecom operator” leads to a very low sales volume.
Content distribution models in which rights holders get less than 20% of the price that the end user pays.
An example of such a model is the sale of music in the GSM networks of mobile operators according to the scheme: premium SMS + payment for WAP traffic. Moreover, the cost of WAP traffic significantly exceeds the cost of SMS. Owners are calculated on the basis of the cost of SMS. Such conditions do not suit copyright holders, they do not provide hit content under such conditions.
I propose to introduce a model for the sale of content, which is exempt from all the shortcomings inherent in the above models. The essence of the model is to sell audio and video content with the calculations "by weight". Yes, yes it is "by weight". I propose to sell music and video, charging customers a fee in proportion to the size of downloaded files in megabytes. I propose to sell works of audio and video art, as well as selling energy and precious metals, at a price per "unit of weight." The telecom operator sets the subscribers with a fee for traffic from certain URLs on which the music and video are located. Money is debited from the same account of the subscriber from which the fee for communication services is charged (for the Internet).
In this model, the telecom operator performs its main business function - it provides a communication channel and charges subscribers in proportion to the “deflated traffic”.
The right holder performs its main business function - it provides the rights to distribute the most hit content.
The Internet provider carries out its main business function - organizes the sale of content by the copyright holder through the communication channels of the operator.
I emphasize that in this scheme, each participant acts precisely in the area where he has the greatest profit. Each performs its main business function.
Habraludi, I ask you to express your contraindications, comments and questions on the model of sales of multimedia content I have described through communication networks.
In order for us to instantly get a just-released music album or video film legally, the effective interaction of the following participants in the business process is necessary:
• Telecommunications operator
• Copyright Holder
• Payment system
• Content provider
Let us briefly consider the role of each of the participants.
')
The carrier provides the delivery of content to the subscriber on his multimedia player. As a multimedia player, subscribers are increasingly using mobile devices.
The right holder “creates” multimedia content and has the rights to sell and distribute content. Let me remind you that the distribution of music and videos without respecting related rights is a crime against someone else’s property and may entail financial sanctions and sometimes even criminal penalties.
The payment system is necessary in order to receive money from the subscriber for the sold content. Currently, the Internet is usually used bank cards and electronic payment systems. If we talk about the sale of content in the networks of mobile operators, the role of the payment system is performed by the operator. We believe that the model is optimal when, when selling multimedia content, the telecom operator assumes the role of the payment system.
The content provider organizes the sale of content by the right holder through the operator’s communication networks. The most appropriate analogy is to compare the role of the content provider with the role of the catalyst in chemical reactions. Without a catalyst - the “reaction” will be, but its speed will be very slow. So with the sale of content. The operator and the copyright holder can "directly" agree on the sale of content. But sales schemes created without the participation of a content provider are very often less profitable than sales schemes of the same content created by content providers. This is explained by the fact that neither for the operator, nor for the right holder, the organization of sales of content through communication networks is not the main business function. Therefore, there are very few successful transactions for the sale of content made “directly”, and they are often unequal in nature.
The growth of revenues from the sale of multimedia content in digital form is hampered by piracy and the lack of a sales model, which could be beneficial for both telecom operators and rights holders.
The fight against piracy will leave for law enforcement. Let's talk in detail about the business models of content sales. Briefly describe the existing models and their inherent problems.
Distribution of content without copyright and related rights (piracy). The problem of this model is violated Russian and international legislation. For violation of the law, sooner or later you will have to bear responsibility (for example, to pay a “fine”). The main problem with this model is that the right holder and the carrier do not receive their share of the revenues.
Distribution of content without the participation of the operator in the income from the sale of content.
Examples include online stores such as iTunes, amazon.com and yahoo.com. The main problem with this method of content distribution in Russia is that subscribers are charged with bank cards. Although in Russia, bank cards are widespread, they are practically not used on the Internet. Due to national identity, our citizens prefer cash. This is the reason for the wide distribution of instant payment terminals in the Russian Federation.
Given that the number of subscriber accounts with telecom operators has exceeded the population of Russia, we can conclude that almost every resident of Russia has a "bill" with one or several telecom operators. At the same time, according to statistics, less than 30% of adult residents have bank cards and less than 1% use cards for online payments. The model of selling content without a telecom operator’s participation in revenue is not interesting to the telecom operator. As we know from practice, the use of different payment systems for the sale of content than a “personal account with a telecom operator” leads to a very low sales volume.
Content distribution models in which rights holders get less than 20% of the price that the end user pays.
An example of such a model is the sale of music in the GSM networks of mobile operators according to the scheme: premium SMS + payment for WAP traffic. Moreover, the cost of WAP traffic significantly exceeds the cost of SMS. Owners are calculated on the basis of the cost of SMS. Such conditions do not suit copyright holders, they do not provide hit content under such conditions.
I propose to introduce a model for the sale of content, which is exempt from all the shortcomings inherent in the above models. The essence of the model is to sell audio and video content with the calculations "by weight". Yes, yes it is "by weight". I propose to sell music and video, charging customers a fee in proportion to the size of downloaded files in megabytes. I propose to sell works of audio and video art, as well as selling energy and precious metals, at a price per "unit of weight." The telecom operator sets the subscribers with a fee for traffic from certain URLs on which the music and video are located. Money is debited from the same account of the subscriber from which the fee for communication services is charged (for the Internet).
In this model, the telecom operator performs its main business function - it provides a communication channel and charges subscribers in proportion to the “deflated traffic”.
The right holder performs its main business function - it provides the rights to distribute the most hit content.
The Internet provider carries out its main business function - organizes the sale of content by the copyright holder through the communication channels of the operator.
I emphasize that in this scheme, each participant acts precisely in the area where he has the greatest profit. Each performs its main business function.
Habraludi, I ask you to express your contraindications, comments and questions on the model of sales of multimedia content I have described through communication networks.
Source: https://habr.com/ru/post/21114/
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