Micro Stock = The Future of Content Licensing

Rights Managed Licensing is on the decline. Royalty Free Licensing is stabilizing (aka “not growing”). Ad supported Licensing models (aka the YouTube way) are proving unmonetizable / unprofitable as well as distracting to viewers in addition to not providing royalties to the content creators / providers among other copyright infringement issues. A new buzz is around CPM / Pay Per Use Licensing. We like to call this new form of licensing “same product, different packaging, everybody gets screwed”. With CPM licensing, a user of content (let’s say a photography, video, or audio clips) pays a fee every time the content is viewed/heard. What ends up happening is that the publisher pays more for the content, the content creator gets a smaller royalty for their work (as the CPM facilitator takes a hefty cut of the action) and the customer is “eternally billed” and tracked for their usage of the content. The truth is that Micro Stock is the future of content licensing. Micro Stock creates entirely new content from new artists, the content is nearly identical to the high end “professional” rights managed content, it gives customers a simple, easy to understand, general use commercial license with no additional billings, and it pays a nice, healthy royalty to it’s content creators. Micro Stock is powerful, it’s taken down an entire $6 billion public company and made it into a $2 billion company. Micro stock is on pace to double in terms of it’s popularity / growth / quantity of content licensed in this manner, over the next 5 years. Micro Stock is here to stay!

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