Key Highlights
- The global streaming video industry is booming, but revenue-sharing disparities have led to Hollywood strikes, highlighting the need for change.
- Replay‘s decentralized video streaming protocol, powered by blockchain
- web3 technology, offers content creators transparency and fairness and could revolutionize Hollywood’s traditional value distribution model.
The global streaming video industry is experiencing rapid growth, with the Over-The-Top (OTT) video industry expected to reach a staggering $200 billion in 2023. This ecosystem encompasses on-demand and ad-supported video content and is primarily driven by popular Web2 streaming platforms like Netflix, Hulu, and Disney+.
Growing Pains of the Streaming Video Industry
Despite projections indicating a potential $300 billion in revenue for the streaming video industry by 2027, there is a concerning imbalance in the way revenue is shared within the industry. The current centralized structure of video streaming platforms results in opaque revenue distribution, with the majority of profits flowing into the coffers of these platforms, leaving only a fraction for the content creators.
- Efforts have been made by various entities, including talent agencies and tech projects, to act as intermediaries, brokering content licensing on behalf of creators.
- Unfortunately, these intermediaries often struggle to track revenue accurately and predominantly rely on manual record-keeping methods.
Recent Hollywood Strikes
Recent strikes initiated by organizations like the Writers Guild of America (WGA), Directors Guild of America (DGA), and SAG-AFTRA (the actors’ union in the United States) have shed light on the significant underpayment and lack of transparency faced by those responsible for producing streamed content. These strikes underscore the flaws in the traditional value distribution model within the film industry.
A Web3 Solution: Blockchain and Decentralized Video Distribution
A potential solution to the challenges faced by mainstream media brands involves leveraging a decentralized and transparent video distribution system powered by blockchain technology.
- Replay, a decentralized video streaming protocol, aims to address the issues for mainstream media brands by ensuring transparency and fairness for content creators through blockchain technology.
- Their Rewarded TV service rewards viewers with digital tokens and adds gamification elements while creators gain control over their content and distribution, building direct relationships with supporting platforms and communities.
FAQs
1. What is Web3 technology, and how can it impact the streaming video industry?
Web3 technology, built on blockchain, can offer transparency and fairness to content creators by reshaping the revenue distribution model in the industry.
2. What does Replay aim to achieve?
Replay is a decentralized video streaming protocol that seeks to empower content creators by utilizing blockchain technology for transparency and real-time compensation.
3. Can Replay’s approach potentially prevent Hollywood strikes and address underpayment issues?
Replay’s transparency and fair compensation model can potentially alleviate the underpayment and lack of transparency issues that have triggered Hollywood strikes, making it a promising solution for the industry.
