After yesterdays newsletter with March status describing the timing of NIM, I got questions why we can claim a 45% increase in royalties with a whopping 26 million time faster payment.
However, the main question was: Will the present pandemic hinder our growth?
The simple answer is NO, on the contrary! – A more comprehensive answer lies within this follow-up newsletter answering both these questions!
A programmatic business model
The core of our services
Originally it was used to describe the process of advertising without human intervention.
I guess some are familiar with the concept as the TV industry has been talking about it for a long time (see https://www.thinkwithgoogle.com/articles/evolution-of-tv-programmatic-tv.html) – Download the article at the bottom – well worth the read.
It describes everything we do!
Our business model has one purpose: Increase the value of online content! Increasing the value of any business usually is primarily depended on – marketing and consequently, sales.
New Internet Media (NIM) increases the value of online content (starting with music) by making the whole value chain more efficient – our business model is disintermediation.
More money, faster – to copyright owners!
The NIM Programmatic Business model.
Think of the data generated in NIM as a sort of currency. The more accurate the reporting of online content use, the more efficient our delivery of royalties will be.
However, the collection of royalties based upon correct metadata is a challenge. A challenge many companies are working on, a problem we fully support.
Resource-handling is all about competing on data and capturing competitive advantage. In the end, a programmatic system for resource-handling provides absolute transparency at the most granular level possible. It saves money, which as we all know improves profitability…
But NOT at the cost of a declining standard of the service.
NIM has divided resources into two main categories: Technology and human.
NIM is fully utilizing cloud platforms (primary Amazon AWS and its technology), so you probably have a basic understanding of the technology behind NIM Services.
How can we utilize these resources on a cost-efficient and optimal way?
By automatic monitor levels of activity, security, access and resources etc. As soon as something needs to be done (based upon monitoring levels) automatically specific procedures kick in.
50% of any workforce has the capacity of being freelancers (this does not mean they are all full-time freelancers, but one of every two workers can be freelancers in some capacity).
This on-demand work, the instant gig economy is moving more and more into independent professionals that are using mobile and technology to create ecosystems of work they enjoy.
Who says you can’t drive an Uber in the morning, design websites all afternoon, and cater your own food company at night? The old economy would lead you to believe that you should pick one job, work hard for the next 40 years at that company, and then retire.
Not the new economy.
The more diverse the skill set, the more opportunities come your way.
It affords NIM to access pre-screened, pre-trained individuals with niche skills, who can get to work quickly and stay on the project/job for as long as they are needed.
The workforce of individuals can be scaled up or down quickly.
If you think about companies like Airbnb, Uber, Getaround, and other crowd-sharing companies, they are eliminating waste. They are taking unused resources and creating value. These platforms do so with cars and apartments (for now).
NIM does the same thing with humans, namely their skills and talents.
When millions of people’s untapped talent have a place to go, we all are making money by reducing cost.
Programmatic deals and legality issues (aka “Smart Contracts”)
Much of this is controlled by a “smart contract”, i.e. computers with rules that decides who does what and where and when.
A smart contract is a snippet of rules captured in software that automatically performs the obligations the parties have committed to under their agreement. It turns out the ideal place to store such a contract, both because of its immutability and its cryptographic security, is a blockchain.
However, they can be simple as in covering the agreement I outlined under programmatic human interaction. A deal is reached to produce a video, and an amount to cover the contract is entered into escrow. As soon as the video is delivered and the client is satisfied that the video is to specification an automatically self-executing instruction releases the fee in escrow.
The whole point of NIM’s programmatic business model is to execute more efficiently and at a (much) less cost than the traditional business models. I would say in a factor of 100 for human resources. I.e. where PRS for music needs 800 people to handle it all we will need eight or less (however, I usually say 80 because nobody believes it –YET!)