TL;DR - Bitcoin tips have been unable to overtake advertisements as the main source of revenue for content creators due to the fact that not many people are willing to make donations. This problem can be solved with unique schemes that give audiences incentives to tip content creators. One option involves having audience members vote on upcoming content with their bitcoins. This model can be applied to movies, music, books, news organizations, free software development, and much more. It would also solve the problem of Internet piracy. Content could be freely available everywhere after the creators initial donation goals are met. New videos, songs, albums, blog posts, and more could be posted by content creators directly to a Reddit-like platform. This would allow the best content to gain more exposure.
None of that requires Bitcoin. You could simply replace 'bitcoins' with 'money' in the quote above.
The full proposal covers why Bitcoin is necessary:
Why Traditional Payment Methods Dont Work for BitMedia
We should also clear up why Bitcoin is required for BitMedia to work. There are three main reasons that something like PayPal would not work properly for this system of donations and tips:
Microtransactions - The base fee on a traditional payment system is usually around $0.30. The 3% discount rate is then charged on top of that flat amount. This means PayPal and debit cards are impractical for donations, tips, and votes under $1.
Chargebacks - Chargebacks would also be a huge issue in this system. We cannot have people reversing payments after theyve made a donation. Posting original content is basically an irreversible transaction because its impossible to get something removed from the Internet after it is already out there. Since the content creator is posting a piece of work that cannot be taken back later, the same concept needs to be applied to the donations and tips. Otherwise, there could be a situation where donors/tippers/voters take back their money after the content has been posted. The content creator would be left with no payment for their work. This is especially troublesome in the Bitcoin vote monetization model because the voters who are able to make chargebacks could impact the results of the poll without having any intention of making a donation.
Censorship - Bitcoin is censorship-resistant money. There would undoubtedly be unpopular content posted on BitMedia. People still need to be able to make their donations when this problem occurs. PayPal, Visa, Mastercard, and other payment companies cannot be trusted to always be fair when it comes to who can receive donations. When these companies blocked Wikileaks from receiving donations in 2011, supporters of the document-leaking organization were able to make donations with Bitcoin.