The average annual income of some 300 webtoon authors Naver announced in September was 220 million won. But this just calculated the incomes of the few authors selected through the “challenge manhwa (cartoon)” procedure, Naver’s platform to screen competent webtoon writers; most other authors hardly make fortunes although they produce contents. A survey announced by the Korea Creative Content Agency in August showed that 68.8% of manhwa and webtoon authors managed to earn 30 million won or less a year in 2017. And 42.6% of authors experienced having signed contracts overwhelmingly in favor of production companies in connection with adaption rights and overseas publication rights, according to the survey.
Piction Network is a decentralized application (DApp) Battle Entertainment launched as its reverse ICO (initial coin offering) project to tackle this problem. All content transactions of Piction Network are conducted in the form of smart contracts without go-betweens, and Pixel is used as the token. Creators receive compensation for their contents entirely without paying commissions. Consumers can get token rewards for participating in the network as supporters or translators. The company plans on expanding its service from webtoons and web fictions to videos and music.
◇Why blockchain?
Battle Entertainment is the company that established Battle Comics boasting 1 million members. Why did the company that had operated a centralized webtoon platform plunge into blockchain, a decentralized technology? Piction Network founder and CEO Fred Bae said, “Only 5% of authors create revenues in existing platforms and this also means that such platforms are unable to provide production support for 95% of authors,” adding that no provision of support can be of help to existing platforms in the long term because various contents come and go in the decentralized ecosystem.
Other companies sympathize with what Bae thinks. Webtoon platform Maxim Comics and video platform AfreecaTV have become Piction Network’s partners. “All platforms feel burdened about supporting contents but partnering with blockchain-based platforms can cut support costs. This amounts to embracing unique contents without additional investments,” Bae said.
◇Initial tasks for a decentralized platform
Securing users is the primary task all blockchain projects have to perform. Without doubt, Piction Network’s initial task is to secure participants in the network as well. Creators have every reason to opt for Piction Network just because of getting proper compensation, but the key is to secure initial supporters. To make the network run smoothly, it’s very important to invest in creators and prioritize the role of supporters who publicize contents. Bae said, “We will conduct an air drop in time with the launch of our service and heavy users and fans who have spent a specific amount of money on webtoons and web fictions so far will receive tokens,” noting that “we aim to encourage heavy users to be Piction Network’s supporters through the air drop and have the tokens they receive returned to creators again.”
Piction Network also has to suggest the reason why general content consumers choose it instead of existing platforms. He admitted that it would not be easy to attract passive consumers who don’t receive tokens but confidently said, “Consumers wanting non-mainstream contents will use our service because contents made by ordinary creators other than the chosen 5% will be even more important.” The existing users of Battle Comics - numbering more than 1 million - are expected to help expand the user base.
To expand the scope of contents, Piction Network also needs a set of strategies that could set itself apart from other blockchain-based platforms. Bae suggested two points. “Our most outstanding uniqueness is to focus on contents made by creators working alone,” he said. “That Piction Network is a reverse ICO of Battle Entertainment is another differentiation strategy. We will make the best use of our existing business network and knowhow.”
◇Kakao’s Klaytn platform
The company with these high hopes has chosen Kakao’s public blockchain platform Klaytn as its mainnet. Piction Network joined Klaytn’s “content” segment. With respect to why it opted for Klaytn, Baes said, “While reviewing mainnet platforms, we gave top priority to user interface (UX),” adding that a convenient DApp should be one through which users can’t be conscious of whether they are using blockchain or the internet. He praised Klaytn for having considered UX best, saying, “Value can wear off if a blockchain is excellent technically but makes users feel uncomfortable.”
Klaytn’s mainnet is due to be made public in the first quarter of next year. Piction Network plans to unveil its beta service in March before going into a full-blown service in June. The progress of the service’s development will be open to the public on a weekly basis. “We will turn over a new leaf as a genuine reverse ICO, giving top priority to confidence-building. Our service will be expanded in China where our subsidiary Shinwoo Soft is as well as Korea,” Bae said.
/Hyunyoung Park Reporter hyun@decenter.kr
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- hyun@decenter.kr