The following is a direct excerpt from Marty’s Bent Issue # 1133: “Media on a Bitcoin Standard”. Sign up for the newsletter here.
Bitcoin is revolutionizing the media and very few people pay attention to it. Your uncle Marty is becoming more and more convinced of this by the day. Especially since he is familiarizing himself with Podcasting 2.0, the current killer app for smart contracts on Bitcoin.
We’ve talked about Podcasting 2.0 before in this rag, but for those of you who don’t know, here’s a brief explanation; Podcasting 2.0 allows a podcaster to insert a Bitcoin Lightning network address or multiple addresses into the RSS feed, which syndicates their audio file to all the different podcasting platforms and apps. Podcasting platforms and apps that want podcasters and their listeners to take advantage of Podcasting 2.0 are integrating Bitcoin wallets into their products so that users can listen to Sats to the Lightning address included in the RSS feed ( n) can send. This enables podcasters to monetize their content directly. Users can send hosts an amount of Bitcoin that they believe is equivalent to the value they have gained from the content. The podcaster can then automatically distribute this value to his team.
This is our division at TFTC.
I get a fixed stake, my co-host Matt gets a fixed stake, and our producer and developer / node manager get a cut for the value they bring to the operation. Our RSS feed acts as a smart contract as we enter our addresses here and split the four of us. When freaks send sats to the podcast, they are instantly distributed to each of us based on the ratio visualized above. There is no intervention on my part to move the money other than move the addresses and breakdowns to the RSS feed.
This is something very simple, but also very profound as it will have a massive impact on content monetization over time. You can implement this type of direct monetization in written and video content as well. Music-producing artists could also take advantage of this, as it increases the opportunity for independent artists to break away from record labels and platforms like Spotify, which are raking in a lion rabbit of the revenue from their art. If they can figure out how to create a Lightning-enabled paywall for their songs or integrate Sats streaming so that listeners pay for microtransactions while listening, they can monetize their music directly and instantly pay everyone involved in the production.
As I mentioned above, there may still be ads out there, but they’ll behave differently. Users who use Podcasting 2.0 compatible apps while listening to the ads on a podcast could potentially be paid for that time. Advertisers could commit a portion of their advertising budget to make this a reality. Hopefully you will get much more accurate data on the cost of user acquisition that will allow you to make better spending decisions.
This is just a rushed and not thoroughly worked out version of the vision in my head. I’m about to meet my parents for dinner, but I hope to bring some of these ideas to market at TFTC over the next year. Keep an eye out!