The video world is facing an ongoing disruption that started more than 20 years ago.
When the Internet was introduced, it suddenly changed the world although most of us were not aware of it at the time. Over the years, as the technology improved, especially in the area of communications, we saw massive expansion. Media was one area that was radically altered.
What started out as text eventually incorporated audio and then video. We will eventually see mixed reality is a basic component of our interactions.
To date, video is still the major force. It is also the one where the disruptive nature of technology is just starting.
Video Is A Huge Opportunity For Web3
The Internet provided a new distribution model.
This is basically what we saw for the last 30 years. When we look at how things were moved in the 1980s, it is like night and day.
Email forever altered how we passed along information. No longer was the postal system the centerpiece.
Another example is video. For decades, the major media companies controlled the distribution channels. They were not only the creators of the content but the ones who fed it to the masses.
Of course, the Internet altered this. The result was YouTube and Netflix, two of the largest streaming services.
Let us take a look at the ratings in the U.S. for January:
It is easy to see how Web3 can be an extension of this. In fact, it could, over time, end up being much larger than Web 2.0 in this regard.
Media companies are under attack. Naturally, the definition of what is a media company is skewed. Do we count Amazon and Google (Youtube)? They actually are major players without most realizing it.
Content Creation
As we discussed in the past, the next phase of advancement in this area is on the creation end. Here is where the traditional media companies are likely to suffer another blow.
When we talk disruption, it is best to clarify.
Using this term pertains to the idea that something enters a market on the fringes, is of low quality, yet becomes more of a force as improvements are made.
It is here that artificial intelligence is a disruptive force for the traditional media outlets.
We are seeing a path to a time when there are no sets, actors, camera, extras, directors, or scriptwriters. The introduction of Sora served as a wake up call. While the technology is still lacking, we are starting to see the concept of "good enough" emerging.
This is likely going to take another couple years. However, what happens in 2026 if the tools available to all could generate feature-length films using only a laptop?
Many still take exception to this idea believing all will still gravitate to the Hollywood caliber material. The problem is that A) most could end up at that quality level and B) history shows people are willing to accept "good enough".
YouTube proved how this works. If we are candid, little on there is of the quality of a Warner Bros or Disney. However, the sheer volume means that billions of hours of content is consumed.
Web3 Opportunity
When we implement Web3 into the discussion, we are starting to layer disruption. By this I mean we now have disruption affecting disruption.
Let me explain.
The tools that we see emerging will affect many businesses due to the altering of content creation. This mirrors what happened with distribution decades ago.
Web3 is a new structure that could affect the platforms that we presently see. Netflix and YouTube, the leaders in streaming, could be confronted with a day when newer networks are preferred. The models these ecosystems are operating under is vastly different. It presents an entirely new realm of ownership.
When it comes to online material, video is the elephant in the room. It is the money center everyone is after. If we look at the revenue generated by companies that are video based, as compared ot gaming or audio, it isn't even close.
Video revenues are 4x gaming and 6x audio.
The problem facing the traditional media companies is they are potentially facing tens of millions of disruptors. These are independent content creators. How do you defend against that?
By the same token, digital platforms could face a similar situation as those tens of millions of disruptors want to get paid in some form. Here is where Web 2.0 faces challenges.
If Web3 can offer both income and equity to creators, this could be massive. More powerful tools are showing up, from which people can monetize. However, by placing their content on networks where they have stake, they acquire an equity position that is, hopefully, growing in value.
In Conclusion
Web3 has to focus upon video for a few different reason:
- of all forms of media, it dominates the revenue (and eyeballs)
- YouTube and other platforms disrupted the distribution yet are still closed with regards to the money
- Web 2.0 could offer income yet it is difficult to see how they can match equity
- incentives means that tens of millions of "disruptors" could end up attacking these major corporations
Tackling the big elephant is where the process starts.
It is also what will send the value of platforms skyrocketing.