Beyond the Buffer – The Blockchain Revolution in Streaming

Could future streaming and VoD platforms operate without centralised corporate control? While established services compete with exclusive content and subscription models, blockchain technology is emerging as a potential disruptor, offering alternative frameworks for video content creation, distribution and consumption.

Blockchain-based streaming, in fact, introduces decentralised networks that challenge traditional models of content ownership and revenue sharing. Consequently, for creators seeking alternatives to platform algorithms and fluctuating monetisation, and for viewers interested in novel consumption models, blockchain presents a distinct possibility. This development aligns with growing interest in transparent and creator-centric media options. Therefore, the central question is the extent of blockchain’s impact on streaming and the key players in this evolving landscape.

How Blockchain Works in Streaming

Traditional streaming relies on centralised control over content, revenue, and user data. Blockchain technology, however, offers a different model using a distributed ledger, where a network of computers verifies and records transactions, increasing transparency and reducing reliance on a single authority. For example, platforms built on Ethereum may require users to buy ether, the native cryptocurrency, to pay for transactions or interact with smart contracts.

Smart contracts, which are self-executing agreements coded on the blockchain, automate processes in streaming. For example, upon content viewing, smart contracts can automatically distribute revenue to stakeholders based on pre-defined terms, potentially streamlining payments.

Tokenisation, often through NFTs, transforms video content into unique digital assets on the blockchain. This provides creators with verifiable ownership and new monetisation methods, such as limited editions or fractional ownership. Furthermore, the peer-to-peer aspect of some blockchain streaming models allows users to stream directly from each other, potentially lowering infrastructure costs and enhancing resilience against censorship.

The Promises of the Chain for Creators and Consumers

Blockchain-based streaming platforms present creators with enhanced ownership of their intellectual property. Indeed, the technology’s immutable ledger allows for verifiable proof of authorship, potentially mitigating issues of rights ambiguity common in traditional distribution models. This, in turn, offers content producers greater control over their work while reaching audiences.

The financial structure can also be significantly altered. To illustrate, smart contracts on blockchain platforms can automate revenue distribution, potentially reducing intermediary fees. As a result, creators may receive a larger share of generated revenue compared to current

standards, with more immediate payment processing. This direct monetisation offers a more sustainable income stream independent of platform-specific algorithms.

For viewers, blockchain can introduce greater transparency in media consumption. The technology, for instance, allows for verification of how subscription fees are allocated and enables direct support for creators through microtransactions. This granular control allows viewers to reward content and potentially utilise ‘pay-what-you-want’ models.

Furthermore, the decentralised nature of blockchain offers resilience against censorship. Content distributed across a network is less susceptible to unilateral removal compared to content hosted on centralised servers. This can provide greater creative freedom for filmmakers and content creators addressing sensitive topics. Tokenised governance models can also foster community building by granting stakeholders voting rights on platform decisions, potentially leading to greater user influence.

Today’s Platform and Use Case Landscape

Several platforms illustrate the current implementation of blockchain in streaming and VoD. For example, Livepeer, an Ethereum-based protocol, offers a decentralised video transcoding infrastructure, potentially reducing costs for content creators. The network incentivises node operators for video processing and reports processing over 100 million minutes of video, with partnerships in the Web3 space.

Theta Network, similarly, utilises a peer-to-peer bandwidth-sharing model, allowing users to contribute computing resources for THETA tokens. Its partnerships include Samsung and Google Cloud. Theta’s NFT marketplace, ThetaDrop, has facilitated the sale of video collectibles.

Audius, primarily a music streaming platform, demonstrates direct creator monetisation through its AUDIO token and a governance model involving token holders. The platform reports over 7 million monthly active users and has attracted both independent and established artists.

DTube, built on the Hive blockchain, functions as a decentralised alternative to YouTube, emphasising anti-censorship and transparent revenue sharing. The platform rewards users for content curation and participation.

Challenges and Hurdles to Mass Adoption

Scalability presents a key limitation for widespread blockchain streaming adoption. In fact, many blockchain networks face difficulties managing the high data demands of video streaming at scale, contrasting with the capacity of established centralised platforms. While solutions like layer-2 technologies and specialised blockchains are in development, matching the performance of traditional services remains a challenge.

User experience also poses a significant hurdle. Currently, blockchain platform onboarding often involves cryptocurrency wallets and, in some cases, requires users to pay transaction fees, creating complexity compared to the straightforward interfaces of conventional streaming services. Although efforts to simplify user access and integrate traditional payment methods are underway, a learning curve persists for many viewers.

Regulatory uncertainty adds another layer of complexity. Specifically, the lack of clear legal frameworks for cryptocurrency, content licensing, and data transfer creates ambiguity for

blockchain streaming ventures, potentially hindering investment and content partnerships necessary for competitive content libraries. Moreover, overcoming the established network effects of traditional platforms, with their large user bases and content catalogs, represents a further substantial challenge for new blockchain-based alternatives.

Potential Future Trends and Predictions

Future developments in blockchain streaming may include increased interoperability between platforms. As cross-chain technologies evolve, for instance, users could potentially access content across various blockchain networks through unified interfaces. This, in turn, could redefine subscription models, where digital asset ownership grants access to content across different services.

Layer-2 solutions designed for video delivery could address current scalability issues by processing transactions off-chain while retaining blockchain security. These advancements might enable faster micropayments and lower transaction costs, potentially facilitating pay-per-use models for viewers and more immediate compensation for creators.

The integration of artificial intelligence with blockchain platforms could reshape content discovery and monetisation. For example, decentralised autonomous organisations might utilise AI to identify and fund promising creators based on transparent metrics. AI tools could also assist viewers in evaluating content value, potentially leading to more equitable pricing structures.

Fractionalised content ownership presents another potential shift. Creators, for instance, could raise capital by offering ownership shares as tokens, with investors receiving a portion of streaming revenue. This model could broaden media investment opportunities and allow audiences to directly support and benefit from successful content.

Is Blockchain Really the Next Big Stream?

Blockchain technology presents a distinct alternative for streaming media, potentially shifting control towards creators and offering viewers more autonomy. While widespread adoption faces technical, usability, and regulatory challenges, the principles of transparency and decentralisation address existing issues within the video landscape.

A gradual integration of blockchain elements into traditional platforms, alongside the growth of decentralised niche services, appears more probable than a sudden industry overhaul. Ultimately, the core potential lies in fostering a more equitable and diverse streaming ecosystem that better supports creators, irrespective of the ultimate technological trajectory.

Other posts by :

1. Bank excited by C-band prospects
2. Bank: “More headwinds ahead for Eutelsat”
3. BT, Avanti in legal spat
4. SpaceRISE: “IRIS² moves to next phase”
5. EchoStar in trouble with FCC
6. Abu Dhabi clamps down on satellite TV users
7. Japan’s D2C options come to a head
8. Saudis seek growth in space
9. Bank: Eutelsat “Underperform and unattractive”

Categories: Articles, Blockchain

Tags: blockchain