Would it be possible to implement NFTs (non-fungible tokens) in the streaming industry? We barely touch all the possibilities related to this technology. These digital works of art still have a lot to give us, especially in the field of streaming. What sets NFTS apart is all the engagement they generate through a project or a mode of consumption.
And it could well be of great use for TV streaming platforms. Because big companies like Netflix is still struggling to make its business model profitable. Adding advertisements to their site seems to be a now outdated concept that is not going well with the community. In this article, we explain how NFTs can be a game-changer.
Subscription NFTs: a community membership card
The great strength of NFTS is their ability to bring together a large number of people behind something concrete. Today, the subscription system is predominant in the video streaming sector. Even Youtube, a free streaming platform by definition, has tried to introduce this model through Youtube Premium which gives access to additional features. Netflix is the king, but yet, it struggles to make its economic model viable and is even thinking of introducing additional advertising.
Netflix has announced that it wants to fight account sharing to force every user to own their own personal Netflix account. On this table, NFTs are a ready-made solution since they belong exclusively to their holder. By adopting this model, Netflix would solve the issue of account sharing in no time. But that’s not all ! The application of NFTs cannot be summarized in a few lines as their applications are multiple. The crypto market is also observing a great boom in the emergence of various and varied projects. We advise you to take a look at these from the eToro platform.
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Netflix NFTs as a membership card
NFTs have a membership card function which reinforces the community aspect. Users might even own NFTs around themes they like like “romantic”, “action”, “humor”, etc. This ensures a close-knit community and sharing a kind of membership card (in the form of NFT) around an area they like on a streaming platform. This economic model could be a significant source of revenue for distributors while guaranteeing series and film creators a qualified and committed audience.
The problem with this kind of general public platforms is that many users will buy a subscription to watch only a few very specific series. Despite a powerful algorithm, platforms cannot fully guarantee creators that their series will reach the acquired public. By distributing NFT membership cards, the platform can measure demand in detail and optimize yieldss linked to the production of films and series! And it seems that the platform is thinking about it and measuring the temperature as this tweet demonstrates in 2022.
What are your thoughts on NFTs?
— Netflix Engineering (@NetflixEng) January 21, 2022
And if we look at the comments of this tweet, the public seems rather favorable to this kind of initiative! Enough to motivate more than one to start making the transition to Web3. But before we get excited, let’s see what concretely the NFT system can bring to the world of streaming.
NFTs as a reward system in streaming
Imagine that watching streaming content almost becomes a sport! This would probably be the dream of many people, and it may be possible via NFT technology. Because NFTs are also a good way to measure user activity. With this, we can imagine that members of a platform could receive rewards based on their engagement on a series.
For example, a user who watches all the episodes of a series in record time could receive VIP points for their commitment. It would give him access to bonuses such as viewing a new episode or an additional “behind the scene” episode. In short, the possibilities are many and we might be surprised how much can be done through these digital images.
Netflix recently tried it out with the series Stranger Things by launching an NFT collection. If we can welcome the initiative, it still remains far from the possibilities that we can imagine. However, there is a real curiosity of the platform for the thing!
So why hasn’t Netflix gotten to Web3 yet?
As you can imagine, there are some significant obstacles to the transition from streaming services to the Web3 system and NFTs. Web2 has been the scene of all the innovations that we know today. The market is simple, companies offer their platforms to users around the world, at low cost, against the possibility of collecting information on the customers in question. Moreover, the Web2 gives complete authority over the companies which decide the direction they can take.
With Web3 and NFTs, it is possible that we will arrive at a completely decentralized system. The line between creators and customers will become thinner and the latter will have a more important part in the decisions taken by the latter. Imagine that a community gathered around the “action” genre which, not satisfied with the programs offered, decides to sell/terminate their NFTs en masse. The effect would be immediate and far greater than a bad movie distributed on the platform and falling into the abyss of the platform.
To top it off, it is undeniable that such a transition cannot be done in the snap of a finger. It is likely that the Web3 model will not become widespread for a few years, given all the work to be done around that. Anyway, it is very likely that more and more new platforms will emerge with models similar to the one mentioned. If you want to know more about current NFT project opportunities, go to our listing page of the best NFT Web3 crypto projects of the moment.