BitTorrent expands business model favoring creators

MANILA, Philippines – BitTorrent announced Monday, November 17, it was expanding its paygate-based business model to creators, giving them a 90% cut in all sales.

BitTorrent is popularly associated with piracy due to its ability to provide peer-to-peer file distribution of copyrighted items.

It’s now trying to change its reputation by opening its paygate-based model to all artists who will use BitTorrent as publisher of their content.

In a TechCrunch report, Matt Mason, Chief Content Officer of BitTorrent noted, “Our goal with BitTorrent Bundle is to restore control to creators. We’re opening up applications for paygates to all publishers: allowing artists to sell content direct to fans, on their terms, while keeping 90% of sales revenue.”

This announcement follows after Taylor Swift pulled out her entire catalogue from Spotify because of royalty issues.

“The value of art shouldn’t be up for debate. It should be up to artists.” Mason said.

This was announced together with the celebration of Diplo’s 10th anniversary of his first album ‘Florida’. It’s now available in a $5 paygate bundle that has bonus unreleased content.

Prior to this, Thom Yorke of Radiohead released his second solo album ‘Tomorrow’s Modern Boxes’ via a paygate bundle for $6 last September.

Talking about their competition, Straith Schreder, Director of Content Strategy for BitTorrent, said their paygate system is transparent, unlike other platforms who do not disclose just how much goes back to the artists themselves.

“For another, it’s sustainable. Platforms like iTunes take up to 40% of sales revenue – without disclosing fan contact information or date. Which means that, as an artist, you have no idea who’s buying your work, and how to reach them. To deprive artists of this data is to deprive them of the ability to build a viable business,” Schreder said. – Rappler.com