Can blockchain make video streaming fairer? This project building on Theta thinks so
Built on the Theta blockchain, Replay is a protocol designed to save creators from the frustrations of monetizing content by improved transparency and control.
Today, the back-end of video streaming is often opaque for content creators, including how revenue is shared; how long it takes for creators to receive compensation, and exactly how successful a piece of content has been.
The problem with creating video content
As the leading video streaming platform, YouTube plays more than one billion videos on a daily basis. Every hour, 500 hours of new content is uploaded. It has more than 26.6 million paying subscribers, and its total add revenue for 2021 is $8.6 billion.
Video streaming is the backbone of TikTok, Instagram, Twitch, and many other platforms. It has become a solid business for many; however, its finances remain problematic. There are no industry standards for revenue sharing models. Each platform is free to set its own rules while being as ambiguous as they please.
For example, Facebook takes a 45% cut from the ad revenue generated from one content. It splits the remaining 55% amongst the content creator and creators of content that appears as suggested. Dispersion of this 55% is not transparent and not properly tracked.
As of the end of 2021, there are 50 million content creators who are facing the same problem. Stressing the severity of the issue, the founder of Nextfund, John Lemp, stated:
“Content creators need a revolution to take control back from the platforms that effectively own their livelihood. The blockchain enables radical transparency, and that transparency will level the playing field for content providers to take back control. I believe the Replay protocol can be the backbone of that revolution.”
Replay’s goal is to provide transparency and control for the content creators. The protocol is designed to give total visibility into content performance. All content viewership is recorded and powered by smart contracts on a distributed ledger. As a result, content creators can secure real-time payments as content is consumed.
For the content distributors like YouTube, Replay allows operators to streamline their tasks and compensate content providers in real-time, which eliminates the need for manual record-keeping and compensation. By simplifying revenue sharing and performance monitoring, Replay aims at establishing a “universal-meter” to benefit both sides.