In the dynamic world of the FAST channel ecosystem, the proverb “too many cooks spoil the broth” aptly describes the current state of affairs. The industry is characterized by a convoluted network of over 100 routes connecting advertisers to content channels across various platforms. This excessive fragmentation not only leads to inefficiencies but also to a fierce competition for a share of the revenue pie.
Fragmentation and Its Discontents
The multitude of intermediaries in the FAST channel ecosystem means that the revenue pie is sliced into many small pieces. By the time the content owners receive their share, it’s often less than one-fifth of the total revenue. This fragmentation is akin to a kitchen with too many cooks, each adding their own ingredients, resulting in a dish that’s far from the original recipe.
YouTube: A Simpler Path
In contrast, YouTube offers a more direct route, with one or at most two intermediaries between the content and the viewer. This streamlined approach allows YouTube to offer more substantial payouts to content creators. However, despite this advantage, the platform is saturated with user-generated content (UGC), and the revenues are not always sustainable for professional content creators.
Kapang’s Innovative Model
Enter Kapang, which has crafted a hybrid model that combines the best of YouTube with a revolutionary approach to revenue sharing. Kapang’s model ensures that two-thirds of the revenue goes back to the content owner. This is achieved through a single link between the content channel, TV broadcasters, or content creators and Kapang, effectively eliminating the revenue shares that are lost across the ecosystem.
The Kapang Advantage
Kapang’s model addresses the core issues of the FAST channel ecosystem:
- Simplicity: By reducing the number of intermediaries, Kapang simplifies the revenue path, ensuring that content owners receive a fairer share.
- Sustainability: With a higher percentage of revenue going back to content creators, Kapang offers a more sustainable model for content monetization.
- Efficiency: The single link between creators and Kapang streamlines the process, reducing the inefficiencies caused by fragmentation.
Conclusion: Kapang is a Recipe for Success
Kapang’s innovative approach could be the recipe for success in the FAST channel ecosystem. By reducing the number of ‘cooks’ and simplifying the ‘broth,’ Kapang is poised to create a more efficient and equitable environment for content creators, advertisers, and viewers alike. In doing so, it challenges the status quo and paves the way for a more balanced and profitable future for all stakeholders in the industry.
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