Q: How does The 9thXchange work?
A: Our website is a digital marketplace where fans can bid on and purchase digital files, and then resell the file by putting it back up for auction through The 9thXchange. Most of the files distributed on The 9thXchange are limited in their release, so there will be a premium on their demand. Depending on the marketplace, the user may be able to sell the digital file at a higher price than the original purchase price.
Q: What types of digital files are sold on The 9thXchange?
A: Examples of digital files that may be available through The 9thXchange would include, but not be limited to, the following: games, music, video, software, eBooks, text, digital collectibles, and digital memorabilia.
Q: What is the difference between the digital files sold on 9thXchange compared to
other online stores?
A: The digital files up for auction on The 9thXchange are special edition limited release content that will appeal to fans specific to a genre. For instance, a recording artist may release a limited edition song that is only available through The 9thXchange. The initial public offering for the song could be limited to 500 digital files. After the initial auctions for each of the 500 files has expired, it could be the case that only 350 of those files are actually sold. The 9thXchange would shelve the 150 unsold files, which would further limit the availability of the song. This will increase demand for the file in future auctions where the user is able to resell the files they purchased through The 9thXchange. The re-sale of these digital files will create Legacy Royalties that will create revenue for content creators over the lifetime of the digital file.
Q: What is a Legacy Royalty?
A: Since all content sold on The 9thXchange can only be sold or traded through our auction and sales system, we manage each sale and collect a fee on each transaction between consumers for the lifetime of the product. A portion of that fee is paid to content creators as a "legacy royalty". Legacy royalties earn the company and content creator, revenue from every sales transaction, regardless of the number of sales and re-sales for the lifespan of the digital life. As the files increase in value, so does the amount of money earned by the company and content creator for the lifetime of the product.
Earning royalties for an indefinite time period will be a real factor for an explosion in new digital content. The money earned will surpass traditional licensing materials currently available to content brands. An example is a successful movie such as Harry Potter. This movie offers thousands of licensed and branded "tangible" products (dolls, figurines, board games, etc.), which in some way relate to the movie. The ONLY revenue the tangible products earn the creators is on the initial sale, NOT on subsequent sales between consumers. Presumably, when the product appreciates in value, the creators lose out on the appreciation in value of their creations. We changed that! Creators will now earn royalties on each transaction between consumers—forever!
Q: Can content owners use The 9thXchange to sell digital files from their own site?
A: Yes. The software application is licensable to companies wishing to hold auctions of content on their own sites, while using The 9thXchange software package. We would still host and distribute the content, but the site would have a facade to match the customer (Disney, NASCAR, etc.) The 9thXchange will charge an annual licensing fee, maintenance fee, and a revenue share that is generated through a percentage of each transaction. The licensing fees have yet to be determined and will depend on development and support needs of the customer.
Q: How will digital content be protected for content creators?
A: Original digital formats will be stored within The 9thXchange infrastructure. Access to the secured upload locations will be restricted to the individual content providers. These new uploads will be archived and removed from the upload directories daily. Content sent to us in other formats will not be stored on any publicly accessible server.
Q: How and when do content creators get paid?
A: Based on a contract agreement between the content creators and The 9thXchange, they will be paid on a scheduled basis by EFT. Content providers will get paid weekly, monthly, or quarterly based on contract agreements.
Q: How will the digital files be priced?
A: The 9thXchange is an auction site, so the price will be determined by a winning bid. You, the content creator, will set the minimum bid price in cooperation with The 9thXchange. This price will be determined based on overhead expenses and historic benchmarks.
Q: How do content creators add content to 9thX.com?
A: Content will be added to The 9thXchange via a secured link to our servers. An upload page allows providers the ability to directly upload content. Content can also be sent to The 9thXchange via email, USPS, FedEx, SFTP, etc.
Q: Can content creators offer their digital content directly to the consumer without putting it up for auction?
A: It will be up to the content owner whether they want to offer a digital file directly to the consumer. A digital file that is available through a direct sale will have that designation clearly indicated in the listing description. Once the consumer selects "BUY" for a direct sale digital file, the purchase process for the file is initiated.
Q: As the content creator can I place restrictions on how the digital files are used?
A: The content creator will determine the licensing criteria for the digital files distributed on The 9thXchange. Users will be made aware of licensing restrictions on files on which they they bid. The following are some of the potential restrictions that could be placed on digital content:
- How many times a file is played
- On which computer the file can be played
- On which devices a file can be played
- Whether the file can be copied
- Whether the file can be backed up and restored
- When the file can be played (time/date ranges)
Q: Who determines the category of the digital file?
A: The 9thXchange, with the input of content providers, will be responsible for categorization of all new content.
Q: Can consumers repurchase the digital file without putting it up for auction?
A: Content creators have the option of allowing users to repurchase digital files after they have used up the number of times the file can be accessed. The consumer would be given the option of repurchasing the digital file at a 25% discount of the price of their original purchase. The 9thXchange will only allow this to occur one time.
Q: How big can the offered digital files be?
A: The 9thXchange has the technology to distribute files in size anywhere from 1 to 700 megs.
Q: How do content creators track sales?
A: The 9thXchange will use the same interface customers use to track sales. This interface will supply auction sales, summary data, etc. The information available to content providers will increase after the production launch, based on provider requests and suggestions.
Q: How do content creators contact The 9thXchange about selling their digital content?
A: Anyone wishing to offer their content for sale on the www.9thX.com web site, please email us via our contact form or call us at (321) 752-6566.
Q: How do content creators contact customer service?
A: Anyone needing customer service of who would like to have a question answered, please email us using our contact form. A chat room between content creators and customer service will also be available on the www.9thX.com web site.
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