Video on demand isn’t just leading the industry – it’s essentially dominating it. According to one recent study, video content already accounts for about 76% of ALL online traffic. That number is predicted to climb to 82% by as soon as 2020. Another study predicts that by as early as 2019, 72.1% of all United States.
If you had to make a list of some of the industries that have been profoundly affected by the digital content era, the entertainment industry would undoubtedly be right at the top. With digital content dominating the entertainment space, what’s the next chapter in video on demand?
Companies like Netflix and Hulu are spending billions of dollars to create original, exclusive content to entice people to their services. Attracting users to these platforms is becoming increasingly competitive, even for the big guys.
Take YouTube, for example, it’s no secret the video giant has been in cahoots with many of its creators. “YouTubers” as they’re called make money from ads that appear on their videos. The more views their videos get, the more chances a viewer will click on an ad. YouTube currently splits its ad revenue with the video creator whose video generated the revenue.
At least that’s what the policy is now, and that policy or algorithm as many YouTubers have seen can change without notice.
Recently, YouTube updated its Partners Program to no longer serve ads on videos until a channel reaches 10,000-lifetime views. A move YouTube believe will help combat tactics such as channels reuploading the same original video to bring in additional ad revenue.
“We want creators of all sizes to find opportunity on YouTube, and we believe this new application process will help ensure creator revenue continues to grow and end up in the right hands,” Ariel Bardin, YouTube’s vice president of product management, said in a blog post last April.
Video Content Accounts for About 76% of Online Traffic
Not that long ago that many of us were rushing home to make sure we wouldn’t miss the next episode of our favorite shows. Movies, you either saw it in theaters or you’d wait for it to come out on video. Ah, the nostalgia of going to Blockbuster.
That was the way we consumed our entertainment, on their time not ours. Companies could rely on us tuning in on a particular day and time. With the emergence of video-on-demand, companies can no longer have the same control. Not to mention, there are more and more platforms emerging to access this content. Companies can no longer “force” consumers into watching ads as they’ll merely click-away and look elsewhere.
Giving Creators More Control
Sites like TaTaTu, VideoCoin, Viewly, and others have turned to blockchain in an attempt to get a head start in this competitive market. They aim to build communities around their content creators by rewarding both the creator and consumer. This will give more control to the creators to profit from their intellectual property. While at the same time rewarding the consumer for being loyal to the platform.
As video content continues to dominate the industry creators are demanding more. They’re expecting to get a more significant piece of the pie, or will take their content and fans elsewhere. By having these platforms on the blockchain, it will help level the playing field by offering more transparency. Creators will have greater insight into how their content is being monetized.