Streamed content providers have been lambasted for their poor revenue sharing processes and their inability to ‘spread the wealth’

Streaming has completely changed the way that we access media. Becoming a professional streamer (music, video live-streaming, or recorded video) is now a viable career path and users all around the world have a new way to engage with content creators. Streaming is truly an example of how the entertainment industry has adapted to a highly-connected online world.

But while there are more than a few stories of people making it big off of online content that has gone viral – just look at Gangnam Style singer PSY and controversial gaming YouTuber PewDiePie as two examples – for the majority of streamers, the ability to make bank off of streaming revenues has thus far eluded them.

Streamed content providers have been lambasted for their poor revenue sharing processes and their inability to ‘spread the wealth.’

YouTubers with a decent amount of success will bring in approximately $1.50 per 1,000 views. (YouTube recently raised its barriers for monetisation, too). Twitch streamers make approximately $3 per subscriber (via Twitch Prime) or $0.01 per Twitch Bit that a viewer uses to cheer in their stream’s chat.

For the average content creator, these revenue figures are woeful and many argue that it is difficult to make a living relying upon these incomes alone. It’s why many content creators supplement their income using fan subscription platforms such as Patreon as well as sponsorship and marketing deals.

The Cost of Content

The problem is a direct reflection of the enormous cost involved in delivering this streamed content to users.

Over 450 million people use video streaming platform Tencent Video to watch streaming video content. The content creator uploads the video to Tencent Video (the publisher), and then Tencent Video uses its centralised content delivery network (CDN) to deliver it to viewers.

Making all of this audiovisual content available to the world is a huge undertaking that costs a huge amount of money. Video delivery pioneers Theta Network notes that streaming video CDN costs are expected to increase by 30% annually and could grow even more as a result of virtual reality adoption and the rise of 4K and 8K quality videos.

If centralised CDNs are already paying content creators peanuts, what will happen when the costs of maintaining and improving that CDN infrastructure increase even more? It’s just not sustainable.

What Blockchain Has to Do With It

With the problem laid out as such the solution seems obvious; just cut out the middle-man. If Tencent Video, Panda-TV, Douyi and co. are having to spend so much money on delivering content, then by making it easier for content creators to deliver content to their fans, creators can benefit.

Experts in the field of content delivery and streaming say that blockchain can offer that very solution. Organisations such as the Theta Network are currently developing a decentralised video streaming solution whereby bandwidth and resources are shared across the blockchain network, completely eliminating the need to develop expensive infrastructure models to get this content in front of users.

Also read: These 7 industries better be ready for blockchain disruption

With the power of the blockchain, a content creator would release their video and users would use their resources to spread that and make the content accessible to all. Who needs revenue-cutting CDN when content creators and users can take it upon themselves?

A decentralised CDN wouldn’t just impact content creation revenues, though, as Theta Network also believes that it could “could bring high-speed streaming speeds to developing countries around the world, completely changing their relationship and experience with live streaming video.” The organisation suggests that it can multiply today’s user experience when watching video by 5-10x. That would potentially open up content creators to new audiences that were previously unable to engage with their content.

How Theta is Making This Happen

Theta Network is committed to its goals and has already set about establishing global partnerships in order to make its decentralised blockchain video streaming network happen.

One such partnership is with Play Labs @ MIT, an accelerator program for new startups that was founded by MIT students. Theta is sponsoring Plays Labs @ MIT and two of Theta’s founders (who are MIT alumni) will be on-hand to mentor these ambitious MIT students on business and blockchain based startups.

This will also include the development of decentralised apps (Dapps) using Theta’s blockchain and protocol, touching upon video streaming, scripted entertainment, esports and more, with some possibilities including a decentralised YouTube or Tencent Video and a decentralised version of Twitch.

Theta hopes to replicate this same partnership with universities in China, recognising the “groundbreaking blockchain research” taking place at universities such as Beihang University, Tsinghua University, and Zhejiang University. Shenzhen University, which has also worked on research regarding blockchain and intellectual property rights for artists, is also described as being of “great interest” to Theta.

The concern surrounding content creators and their lack of revenue is not going away soon and it’s clear that the problem will only increase in the coming years. This is why many proponents of online streaming will be happy to know that Theta’s developments in the space are “well beyond blockchain architecture and design stage.”

Theta Network estimates that its blockchain and protocol that is purpose-built for video delivery estimated to be available in Q4 2018, and will be working with its Media Advisory council and streaming partners on a test-net that will launch in later this year.

Also read: What is wrong with video content today? There is information scarcity and abundance of noise

The video streaming market is growing at an unprecedented rate, with Twitch’s streamer numbers growing by 197% in 2017. This further highlights the need for more efficient content delivery systems; existing systems will buckle under the weight of all of the new views and content creators being added. In order to sustain this growth a new method of content delivery is needed.

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