3 Reasons Video Streaming Needs Blockchain Technology

Blockchain solutions are exploding in nearly every technological field. It seems that every news site has a daily blockchain solution update, and another commentary on the power and efficiency of blockchain technology.

Recent companies include Xerox filing a substantial number of blockchain patents, and reports that the majority of enterprise-level banking institutions are embracing blockchain as well. Other industries are joining in as well.

The video streaming industry is no different, as companies are seeking solutions for user content and monetization, independent content freedom, and elimination of censorship across platforms. These goals may seem simple enough, but have proven complex on traditional platforms.

Companies have sought to create new systems to deal with issues facing the industry, especially as China and other countries have begun to crackdown on video streaming sites. These companies have created platforms that allow for independence, monetization, and freedom from censorship through blockchain.

Independence of Content

Independent and small-scale filmmakers face a plethora of production and distribution problems. While YouTube has provided a means of distribution for creators, the reality is that films are processed through centralized hubs that use the content for traffic, rather than directing users to content that they would like.

Filmmakers are unable to target their audiences with films, since the power of distribution is left in the hands of the centralized corporation. And because distribution is limited to these hubs, the creators are also limited in the contact they are able to have with viewers.

The new wave of companies are seeking solutions for this imbalance through blockchain technology. Blockchain allows for peer-to-peer (P2P) distribution, effectively removing the centralized hub and creating a system where independent film makers are able to market and distribute directly to their viewers.

Monetization of Content

This centralized distribution system also leaves independent filmmakers with paltry ways to monetize content. AdSense allows YouTube publishers to make income from ads that are attached to the video itself, but this solution is ineffective. It strips value from the content itself, and effectively reduces the true content makers to taking scraps of advertising revenue. It is this system that has grown YouTube into such a massive enterprise-level entity.

Blockchain platforms are creating ways for users to monetize their content directly, rather than having the centralized hub gain traffic and financial reward. The main method for creating this platform is the tokenization of content.

Companies create tokens via initial coin offerings (ICO). These tokens can then be used within the platform by creators to promote their content, or by consumers to access and consume content. By tokenizing content, blockchain makes it possible for users to choose who and what to offer and watch, while gaining monetary remuneration directly from the content itself.

For example, stream.space has created a platform where video streaming can be uploaded, promoted and monetized by creators. At the same time, the content can be accessed by consumers directly, allowing for direct P2P monetization.

Stream.space is using a tokenized model for connecting consumers with creators, making a platform exclusive token available for all internal transactions. Tokens can subsequently be exchanged for fiat currencies outside the platform as well. The company’s ICO begins October 23.

Censorship of Content

Current video sharing platforms contain substantial levels of censorship. Because of the nature of YouTube and other platforms, censorship is a requirement for content distribution. Creators are not able to produce or distribute their content to users who are interested without fixed content regulations.

Blockchain allows for censorship-free content distribution because it creates a network between peers directly. Rather than public distribution, P2P systems move content between users and allows creators to promote their content directly to those users who are able to consume it. This effectively limits the control of censorship.

The creator/hub platforms that exist today, such as YouTube, have not adequately considered the independent filmmaker market, nor the consumers that are seeking to stream such content. Without systems for freedom, monetization, and uncensored distribution, the industry is ripe for change.

Companies are creating blockchain platforms to allow for content streaming in this way, and replacing the dysfunctional current system with platforms that are built for users by users.