Booming but rigged
Growth prospects in video streaming for the coming year are exhilarating—in fact, almost intoxicating—if you’re on the right end of the business model. In fact, DeCast says, “…the market size alone is global in scope and game changing in nature.”
The following statistics support that bold statement: Livestream.com reports that 81% of internet and mobile users watched more video in 2016 than 2015. Additionally, 45% of live video consumers report that they are willing to pay for a live video of a favorite performer. In China alone, the live video streaming market rose 180% in 2016, says market research firm iResearch. And, according to PR Newswire, the video streaming market is estimated to grow from $30.29 billion in 2016 to more than $70 billion by 2021.
These numbers would seem to lead to an overwhelming conclusion: Video content providers must be rolling in dough, right?
Unfortunately, this is not the case.
Despite the booming industry, video content providers, especially live streaming broadcasters who create the content that is driving the boom, have only earned meager rewards. For instance, Youku.com, one of the largest video communities in China, took 70% of the advertising income generated by video content providers. And platforms like Twitch, Momo, YY, and LiveJasmin have acquired millions of users, which means broadcasters are getting shortchanged, too. The existing business model squeezes billions of dollars out of users and broadcasters by charging commissions, service fees, and through push advertising, while broadcasters struggle to squeeze pennies.
For example, Liveme, YY, and Momo all take a huge cut from the broadcasters’ tipping pool, which is donated by audiences and meant for the broadcasters. To illustrate, consider a user who tips a “diamond” on Liveme. That diamond is worth $3. Multiply that by 40,000 “tips” and the total should be $120,000. However, after the platforms stretch their long arms to grab their fees and commissions, that $120,000 for the broadcasters turns into $200 when they cash out. A similar model is used by YY, Momo and many other centralized live streaming platforms.
The “grab” may come in different forms. In LiveJasmin, for example, users are charged $1-5 per minute during private chatting, while only a small portion is shared with broadcasters.
Broadcasters are not the only group who have been squeezed. Users have not been treated fairly either. Twitch, for example, sacrifices user experience with constant push advertising. Additionally, when users click “like” or “dislike” for a content, these user engagements are employed as data input to curate better contents. The work of curating content has not been recognized as a contribution and is not rewarded in the existing system, despite the fact that user behavior is used extensively to conduct analysis as a way to increase revenue. Although the “community” benefits from this important curation function, relatively few people benefit financially, thus limiting the definition of “community” in this business model.
The methods may vary, but the results are the same. These companies, acting as middlemen, are overcharging.
In short, the system is rigged.
Until now—enter Lino.
Using blockchain technology, we are creating Lino to challenge the traditional, centralized video streaming business model. Take a look:
Lino is a decentralized community without user fees. All members can interact with each other directly without going through a middleman. The Lino cryptocurrency supports real-time free transactions among users. We do not charge transaction fees or take cuts from anyone.
Lino community is self-sustaining so the advertising income is not necessary. The whole platform is supported by developers and by miners running servers, and they are rewarded with Linos. Thus, every member owns a portion of the community and is able to watch content without the interruption of push advertisement.
Everyone is rewarded
The Lino cryptocurrency system incentivizes people to provide contributions, such as content creation, curation, infrastructure services, and application development. Video content providers will be rewarded for providing great content, and audiences can be rewarded for curating content.
At Lino, we believe that blockchain technology should be used to benefit ordinary people by providing better user experience and creating more efficient decentralized communities. Our revolutionary approach will bring fairness to video streaming and restore what it means to be a true "community."
If you want to learn more about this exciting new community, go to Lino.network to subscribe to our email list and stay updated on our latest innovations.