The “network effect” in the streaming landscape is extremely powerful. The more users that platforms like Facebook, YouTube, and Spotify acquire, the more valuable they become and the more leverage they gain over content creators.
By the same token, these major streaming platforms are only as good as their content. Without compelling videos published on YouTube or talented artists uploading their music to Spotify, these platforms wouldn’t attract users.
So if the platforms and creators are seemingly co-dependent, why do the platforms, not the artists, hold the most power? The platforms make deals with advertisers and formulate the algorithms that determine how much creators earn (pennies by comparison). Meanwhile, creators are kept in the dark with platforms leveraging a lack of transparency to benefit themselves.
This highlights the need for a new content ecosystem that accurately rewards creators for their contributions and introduces much-needed transparency for all participants. The best way to achieve such a system is to leverage blockchain technology, which enables transparent data tracking, accurate attribution of actions, and decentralized distribution of rewards.