Also read: Bitcoin Micropayments Can Save The Arts
Rewarding video creators for their work makes a lot of sense (see the comments to our review of The Rise and Rise of Bitcoin). Creative artists and producers must be able to make some money and earn at least part of their living with video making, otherwise they will soon be forced to give up and focus on whatever they can do to put food on the table, and everyone will lose.
On the other hand, very few people will spend ten dollars or more to watch a video online. Small micropayments of one dollar or less seem a good solution, but it’s impossible to implement micropayments within the traditional online payment framework with credit cards and PayPal because the overhead transaction costs are too high. Another problem is that most Internet users are used to one-click actions and can’t be bothered with lengthy login and verification procedures.
The WatchMyBit team are betting on the possibility that viewers will pay for content if they can do so with one click and without transaction overheads. Bitcoin micropayments are a perfect solution: the viewers will be able to pay very small amounts (for example half a dollar), by simply entering the payment address. The WatchMyBit website says:
We give you complete control over how much to charge for each view of your video. You can charge as little as nine cents, or as much as you think your fans will pay. You don’t need a credit card, bank account or even paypal. If you are not getting many views, lower your price, if you are getting a lot of views raise your price.
We will collect the bitcoins for you and send them to the bitcoin address you give us
AND you can add multiple co-creators, decide what percentage each receives, and WatchMyBit will automatically split the revenue from each view of your video.
That seems a perfect solution for video makers. A smart suggestion is to upload a trailer to Youtube, with a link to the full video behind the WatchMyBit micropaywall. Video makers can also choose to donate a part of the bitcoins received to a charity, for which WatchMyBit has partnered with doabitofgood.com.
You can sign up for the initial beta testing, beginning next week, on the WatchMyBit website.
What do you think? Comment below!
Images from WatchMyBit and Shutterstock.