Digital media revenue is trapped in expensive, inefficient and long pay cycles. Media finance has not changed, despite distribution models shifting to streaming & micro-transaction economies. No simple solution exists for media companies to leverage daily consumption data to source liquidity or investment.
Utilizing a smart contract protocol to collateralize the data into a tradable asset, Paperchain is accelerating AR financing and streamlining payment collection and remittance through programmable smart contracts and a global network of traditional financing and P2P investors. By creating an efficient, low-cost, and scalable finance platform for the digital media industry, Paperchain is empowering financial market participation in an innovative investment pool of billions of dollars in digital media revenue.
We offer faster liquidity channels by collateralizing daily consumption data and using market economics to lower cost of capital. We provide transparency and information symmetry by utilizing distributed ledger technology and smart contract trading. We’re building strong partnerships with supply chain, regulatory and financial bodies to provide a secure experience.
We're developing a framework that will serve as an infrastructure layer for third parties needing to develop their own financial agreements and markets. Our goal is to employ a decentralized framework that supports a new class of economic citizenry and wealth distribution, particularly for creative media markets.
Many media organizations sell advertising space as part of their monetization strategy. On average, it takes 90-120 days for a payment to flow from the advertising brand to the publisher or news organization. The impression and click data is available in near real-time. The value of this data can be calculated and the data can be sold to an investment network on Paperchain’s marketplace.
Labels and distributors sell their daily streaming data on the marketplace, allowing them to liquidate those revenues in a near-daily pay cycle. A label or distributor knows how many streams their catalog has generated on a given day. The challenge is that although the stream has occurred, the revenue will not be paid for at least 60-90 days. Paperchain provides a way for labels and publishers to sell the value of these daily streams to an investment network, providing immediate access to their own capital.
As SVOD and VOD sales increase, film & TV studios are monetizing more of their media through these distribution channels. The challenge is similar to the music industry. While streams are generated daily, and the data is available daily, the revenue gets paid on 30-90 day cycles. Film & TV studios can sell their SVOD and VOD data reports to an investment network on Paperchain’s marketplace, meaning revenue is realized months ahead of industry pay cycles.
Paperchain creates a liquid market out of traditionally illiquid assets. Investors gain access to a marketplace of validated media transaction receivables from a global network of trusted and recognized media brands (Spotify, Apple, Amazon, Google). They buy the media transaction data sets at a discount and their funds are made immediately available to media owners. Investors then receive the payment from the traditional pay cycle.
Immediate access to low-cost capital
Creating investment in new or underutilized revenue streams
Converting consumption data into investment opportunities
Reduces use of interest-bearing loans & credit lines
Mitigates cash flow challenges
Minimizes administrative overhead for payment distribution