NFTs or non-fungible tokens are digital tokens used to represent a one-of-a-kind, unique asset. The nature of NFTs means that there are no ways to replicate the token. Also, the token can represent any digital asset. This wide range ensures that anyone can turn videos, images, tweets, code, memes, articles, etc., into an NFT.
Financially speaking, the transactions in the NFT world keep increasing and show no signs of stopping. Many artists sell their digital content for vast sums of money while still retaining their ownership rights. That way, they can maximize their profits in the future. One of the most notable NFT sales was a Cryptopunk selling for more than seven million USD.
There are also instances of NFT penetration in other sectors, and here too, the artists receive maximum returns. One industry seeing penetration by the NFT phenomenon is the streaming platform. Streaming reached incredible popularity status thanks to the rise of online gaming. Here, users could stream the game they were playing to a sizable audience and connect with them. As a result, the streaming industry became huge. The industry raised a revenue nearing two hundred billion in 2020, and that number only rose thanks to the pandemics.
Of course, streaming does not limit itself to the gaming industry. Streaming extends to videos, movies and music. NFT streaming also provides several benefits and advantages over traditional streaming media services.
The need for an NFT Streaming Platform
The most significant downside to a traditional media platform is that it rarely takes responsibility for the artist’s revenue. These platforms have a large user base and utilize several options to monetize their content and earn income. However, a minimal amount of that revenue goes to the artist.
The most notable example of this practice is the world-famous music streaming service Spotify. An analysis of the company indicates it typically distributes most of its royalties to less than five percent of the artists. The independent artists on the platform receive a minuscule amount for their content and rarely can earn back on their investment. Much of the revenue goes to the music labels, media distributors, and other involved parties.
The inclusion of NFTs into this industry can bring about a welcome change. NFTs here can provide all the advantages and none of the disadvantages. It can provide a loyal fan base, significantly more significant revenue and enable artists to retain the rights to their content.
Some of the best examples of NFT streaming platforms are
- Ludena Protocol
These sites have a dedicated group of music creators backed by a robust user base. The existence of the platforms also proves that it is possible to create an online store for the artists and still earn enough revenue. The rising popularity of these sites is prompting independent artists to switch from traditional streaming to NFT streaming platforms instead.
NFT Streaming Platforms can benefit Artists. How?
NFTs make it possible for fans to access the content the artist puts out. Imagine an artist can create an NFT for any digital content like videos or music. Listening to or experiencing this content requires the artist to pay a set fee using fiat or cryptocurrency. This transaction permits the user to stream the content, earn revenue for the site, and provide the artist royalties. This method is where everyone can benefit.
This monetization model comes about thanks to the support of blockchain technology. Presently, the most popular networks in the industry are Ethereum and Binance Smart Chain. Artists can even create NFTs related to the media and sell their content on primary or secondary marketplaces.
A typical NFT streaming platform works by generating a platform-specific token for transactions. These token values change depending on the token’s demand and increase when the platform’s value increases. Some platforms even provide ways for the creator and user to generate a passive income.
For example, Theta is a video streaming platform that uses and shares unused bandwidth with other users. This functionality makes streaming look seamless and high-quality for every user on the site. The site provides users who share their bandwidth with Theta tokens. This approach is how users and content creators globally can earn revenue.
Features of NFT Streaming Platform
One reason why companies get into NFT streaming platform development is the several unique features they provide. These include:
- Specialized Content
An NFT streaming platform creates exclusive content for users and establishes a special connection between creator and user. This connection ensures the user comes back for more.
- Artistic Freedom
A traditional streaming platform divides the revenues between the artists and intermediaries. These platforms provide most of the payment to these third-party forces and give a small sum to the artists. NFTs can overcome this issue and remove intermediaries from the conversation altogether. An NFT streaming platform is where the artist can earn their revenue, while a small portion goes to keep the site running.
- Smart Contract Compatible
The presence and utilization of smart contracts provide artists with benefits like royalties and ownership retention.
A Seamless Process
NFT streaming platforms operate on a blockchain network. The technology provided here is robust and secure while ensuring the transactions remain rapid and immune to hacking attempts.
The immutable nature of NFTs means that no one can modify or change the NFT after minting it. It also means that no one can tamper with the content without informing the others.
Famous artists and content creators can create a limited number of NFTs and put them on sale. This way, the artist can generate demand for their content and charge large sums to interested users.
The features listed above highlight how NFT streaming popularity increases every day. The popularity of these sites is the reason why some companies are getting into NFT streaming platform development. However, standing out in this growing industry means adopting methods or practices the competition did not consider. That means considering adding features or functionalities users cannot find anywhere else.
Consider stand-out features like
- Rewards mechanism
- NFT marketplace integration
- The simple NFT minting process
- Daily statistics on NFT performance
- Crypto wallet integration
- Independent profile
- Cross-chain compatibility
Use cases for NFTs in the streaming industry
- NFT for video streaming
- NFT for live streaming
- NFT as a reward mechanic
- NFT subscription services
ConclusionThe inclusion of NFTs into the streaming industry can bring incredible transformation to the medium. Presently, every business is availing of NFT streaming development and increasing their profits.