Tuyanto: Contents Protocol

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:

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.

WATCHA has licensing deals with 50 content providers including HBO, Disney, Sony Pictures, Fox Network, BBC, and others.

The first platform that integrates with Contents Protocol will be Watcha TV, which is going to be a transactional VOD (video on demand) service in Korea.

The content platform itself is still under development, but there is an agreement between them and WATCHA, an app with a rating of 4.7 and has 3.8 million users. On average, each user has provided 100 content rankings.

Their roadmap is as follows:

Q3 2018 - Transactional VOD service with WATCHA and 3rd parties.
Q4 2018 - Subscription based VOD
Q1 2019 - Subscription to Music Service
Q2 2019 - Transactional Webtoon/Novel Service
Q3 2019 - Transactional E-Book Service
Q4 2019 - Integrated Subscription Service

Below is an image showing a glimpse of how incentivization works in the app:

What are the tokens used for and how can token value appreciate?

The tokens will have several functions on the platform. There will be two different tokens (CPT and CP Power) comprising the network.

The two tokens will be convertible at a 1:1 ratio, with the CPT tokens being immediately transferable to CP Power tokens. However, there will be a 4-week lockup period for conversions from CP Power to CPT tokens.

CPT tokens will be used as the transferable, payments token which will be able to be traded on exchanges, used (1) as payment for content creators, and (2) to purchase content by the users. It will also be used as payout to users for their contributions to the network (i.e. referrals, reviews, etc).

CP Powers will be used as a network staking token, and cannot be directly sold. When staked, it can provide various benefits to the users and content creators, such as free advertising, and boosting payouts to users for their network contributions.

The image below shows the distribution breakdown of revenue generated on the Contents Protocol:

The more CPT tokens are converted into CP Power, the less circulating supply there will be for CPT tokens. More users/content providers will stake CP Power if they derive real benefits from doing so, which generally happens when there is more content and usage of the Contents Protocol platform.

Therefore, the more usage and content the platform has, the more users will want to hold onto CP Power tokens, and the more valuable CPT tokens should be.

Opportunities

Users will be able to earn tokens for performing actions on the platform (rating, sharing, etc.), something that they cannot do prior to the shift to blockchain. This may actually attract more users to use the platform.

WATCHA is an established company with a large market share in the Korean VOD market. Very few blockchain projects have this kind of adoption right off the bat.

The VOD market is large and rapidly growing. According to PricewaterhouseCoopers, the global VOD market grew by 3.5 times from 2012 to 2017 and reached $22.3 billion.
The staking mechanism for both users and content providers would encourage holding of the CP Power tokens, effectively reducing the circulating supply of CPT tokens and creating a support for token prices.

Contents Protocol Team