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Looking at how the use of online videos for entertainment and educational purposes have surged in the last decade, one could easily assume that we are advancing from the conventional use of videos at a fast pace. This can be attributed to the engaging potentials of videos in general.
A recent study placed the penetration rate of online videos at 90%. The online video market is a multimillion dollar one which is being held by a few mainstream corporations such as YouTube and Vimeo. YouTube’s current market share among online video platforms is about 77% of the entire market share while Vimeo holds approximately 16% market share value.
On the other hand, video use have become popular with social media networks like Facebook and Twitter as well. In actual fact, the rise in engagement on these social media platforms can be partly attributed to videos. However, in spite of the huge gains accruing to these platforms, content creators and other categories of users gain little or nothing financially.
Without an element of doubt, key players in the existence of online video platforms include creators, curators and viewers. These form the 3 main pillars without which the platform (fourth pillar) cannot exist in first place. In the online video market of today, high profile content creators seem to be almost the only relevant pillar in terms of revenue sharing. Even with this arrangement, these creators receive less value compared to their inputs.
A large portion of advertising revenue is claimed by video platforms. For instance, Google’s share of advertising revenue from YouTube is 45%, while the content creator receives up to 55% of the money paid by advertisers. This may look fantastic from the surface, but it’s not in any way encouraging based on other factors.
Number of channel subscriptions and the total views go a long way to determine how much a video creator earns in the long run. On average, a video content on YouTube will require up to 50% click-through rate (CTR) and 20K daily views to earn close to $50 in a day.
Attracting such number of views poses an uphill task for video creators, especially the new entrants. Recent changes in guidelines for YouTube’s partner program further compounds this situation. On the other hand, advertisers have little or no say over their ad placement while viewers contribute to the traffic without any returns.
In a nutshell, the 3 pillars (creators, curators and viewers) create the majority of the value and are the core reason for the revenue and growth of all social media video platforms, while a single pillar (video platform) takes the larger portion. In the case of Facebook and Twitter, 100% of the revenue and value is retained by the platform, which is only an access point.
A fresh innovation which incorporates the interest of viewers, curators creators and advertisers into a decentralized reward-based social video network is BuzzShow. According to the white paper, BuzzShow’s already developed platform will utilize a proof of contribution mechanism to ensure commensurate reward accrues to content creators, curators, viewers, as well as any other segment involved with the platform.
They aim to reward with the BuzzShow utility tokens (GLDY), every channel creation and video upload as well as views and shares. BuzzShow is planning to implement its proof of contribution based on the future release of its platform on the blockchain technology. This is quite new in this space when compared with similar projects.
BuzzShow has a full-cycle economic setting involving all users contributing and participating in the video ecosytem. Advertisers can directly approach video creators of their choice and pay for ad slots with the platform’s tokens (GLDY).
The mutual relationship between creators, curators and viewers will involve the viewers paying for premium contents with Goldies while getting tokens in return for watching free but ad supported contents. To avoid circumventing the system, the BuzzShow ecosystem will involve moderators and validators who will also earn Goldies to prevent rights violation and offensive contents.
The BuzzShow ICO is scheduled to commence on 5th March 2018 and run till 4th April. The team is aiming at a $20 million hard cap with $93 million tokens available for sale at $0.25 per token.
In a recent release by the BuzzShow team, the project’s inventor, Offer Kohen stated “We are providing a real utility with full cycle economical element well thought out; launching the BuzzShow ICO token sales will enable the BuzzShow platform to become truly reward-based.”
Disclosure:
The author has had a working or personal relationship with one or more companies mentioned in this article in the past. Access to mentioned company’s management and information was made through the author’s personal network. All information was vetted prior to posting.
Disclaimer:
This essay is not intended to be a source of investment, financial, technical, tax, or legal advice. All of this content is for informational purposes only.
BuzzShow: Four Pillars and the Proof of Contribution was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.
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