A recent study conducted by SFJESGS found out that “traditional streaming services have disrupted traditional broadcast television by providing a more personalized, on-demand, and flexible viewing experience. The study also found out that they changed how content is created, distributed, and consumed”.

However, it is intriguing to note that within a short window of time, what were once hailed as disruptors are themselves increasingly facing disruption, especially with the emergence of blockchain technology. Fueled by opaque revenue models, exorbitant subscription costs, and content access fragmentation, the disruption is already underway.

This article examines the future of video streaming as well as the shortcomings of both the traditional and blockchain-based video streaming models. It highlights how decentralized video streaming models leverage blockchain-based approaches to create a more equitable and transparent video economy for creators, viewers, and the entertainment industry as a whole.

Challenges Facing Traditional Streaming Services

Despite its huge potential, the existing video streaming model is anything but perfect. Limited transparency and accountability, exorbitant subscription fees, and fragmented content access are some of the pressing challenges limiting the growth potential of the traditional video streaming industry.

Limited Transparency

The lack of transparency in the distribution of revenue presents a disappointing picture of the opaque payment structures that content creators have to contend with. In most cases, the amount of efforts put into content creation does not commensurate with the rewards that accrue to it.

For smaller creators whose livelihood depend on their content, this imbalance can lead to frustration and disappointment. Besides, since creators have no control over the metrics that are used in calculating their reported earnings, they are usually left in the dark, unsure of how their work translates to actual compensation.

Exorbitant Subscription Fees

Traditional streaming services are often criticized for charging exorbitant subscription fees, leaving viewers with little or no choice. The constant hike in subscriptions costs is majorly fueled by various video streaming platforms competing for dominance.

Fragmented Content Access

The traditional video streaming model lacks a standardized approach to content syndication. This is due to the fact that licensing agreements are often complex and vary greatly between platforms, leading to limited availability and fragmentation. It also restricts viewers' options and makes it difficult for creators to reach a wider audience.

From the above, it is without a doubt to state that current system is built on limited transparency and accountability and fragmentation. These shortcomings provide a justification for the emergence of  decentralized models, which are not only cost-effective but also transparent as well.

Blockchain-based Models

There is an ongoing paradigm shift from traditional streaming services to decentralized models, which not only offers immediate financial benefits but also increased transparency and accountability.

In a decentralized model, blockchain technology gives creators greater control over their work. Through smart contracts (self-executing agreements built on the blockchain), creators can determine how their content is displayed, distributed, and even monetized beyond traditional avenues. The potential of decentralized video streaming model is vast, especially because it fosters a more equitable ecosystem by empowering creators, offering viewers greater choice, and streamlining content distribution.

Challenges Facing Blockchain-based Streaming Models

Although blockchain-based models present exciting possibilities in the streaming ecosystem, navigating scalability, mass adoption, content security and regulatory hurdles remains crucial for their long-term success. These challenges reflect the current stage of the evolution of blockchain technology and should not be regarded as insurmountable obstacles.

Scalability

Scaling blockchain to efficiently handle vast amounts of data such as user information, streaming data, etc. remains a major challenge slowing down the market growth potential. Unlike traditional streaming services that can manage data from a large user base, decentralized models are often confronted with this hurdle . Although blockchain protocols like interplanetary file systems (IPFS) are used for data storage and distribution,

Mass Adoption

Enlightening users about blockchain technology and its advantages within the streaming ecosystem is crucial for its long-term success. Decentralized streaming platforms need to create user-friendly interfaces and educational resources which can streamline . Without a clear understanding of how this technology works, onboarding new users might be prove to be extremely difficult.

Content Security

Protecting users against unauthorized access and copyright infringement underlines the need for decentralized streaming platforms to adopt robust security measures in tackling piracy. Without an assurance that contents uploaded to decentralized streaming platforms are secure, potential users might be reluctant to embrace this new paradigm.

Regulation

Regulatory frameworks for blockchain technology and cryptocurrencies are beginning to take shape in many countries across the world. Decentralized streaming platforms need to stay abreast of these developments and ensure their operations comply with the local regulations of the countries where they are registered.

Technical Complexity

Blockchain needs to be abstracted away into the background due to its complex nature. Users do not want to be bored with the technical details about it. Building a user-friendly streaming application is key to attracting and retaining viewers.

Replay As a Case Study

Having established the thesis that traditional video streaming services face challenges like complex licensing, lack of transparency, and limited viewer choice, it is crucial to examine Replay, a decentralized model, as a practical use case.

Replay, a platform built on blockchain technology and generative AI, aims to address the lingering issues faced by traditional video streaming platforms. It leverages the power of blockchain to create a decentralized network. This means a secure and transparent digital ledger tracks every view and interaction with content. The blockchain-powered video streaming future it seeks to create is built on decentralized network, real time licensing and payment, pay-per-view-model and wide distribution network.

Creators upload content and set their own licensing terms, eliminating the complexities of traditional licensing agreements. Additionally, secure payments are facilitated through RPLAY, Replay's native token, ensuring creators are fairly compensated for every view.

For viewers, Replay offers a pay-per-view model, eliminating subscription fatigue. It also fosters a community-driven experience by encouraging interaction between creators and fans. This not only builds trust but also encourages participation in the decentralized ecosystem.

The Future of Video Streaming

The same also goes for decentralized platforms which may integrate with existing streaming platforms as a way to maximize user reach. Chances are that the future of video streaming is a convergent one in which traditional players coexist with decentralized video streaming platforms by adopting blockchain elements in their operations. Regardless of what happens , the potential of blockchain-based streaming technology to revolutionize the entertainment landscape remains is enormous.

Conclusion

It is an indisputable fact that the traditional video streaming model is hampered by challenges that limit its potential for both creators and viewers. However, the emergence of blockchain technology offers a unique solution, which promises increased transparency, fairer revenue distribution, and wider content accessibility.

Whether independent platforms are leading the charge or established players incorporating blockchain solutions, a new era in video streaming is already underway. This is the era that promises to usher in a more equitable and innovative entertainment landscape, where both creators and viewers have a greater stake in the success of the content they produce and consume.