What if Netflix shares revenue with its users?

June 4, 2022

From the perspective of our CEO, Tracy Loisel.

Did you ever think it was possible to watch and earn? Or have a contribution to the production of Netflix shows? If not for the development of web 3.0, even in my wildest dreams, I wouldn't have believed it either!

 

The rise of media companies like Netflix and Hulu has resulted in a shift away from cable and satellite-based models to paid streaming services like Netflix. The service was initially positioned as a way for customers to save money. The next wave of change in media production will be a shift toward giving users a run for their money. 

 

Netflix is a clear result of the Web 2.0 era, especially in the last few years as streaming TV shows have become more popular. Netflix has been able to keep all of its loyal customers because of its one-to-one marketing strategy. When a user finishes watching a movie or TV show, Netflix asks them to give it a rating from one to five stars based on how they liked it. Netflix uses these ratings to select similar shows to suggest to users. 

This is a superb example of how one-to-one marketing works. You can choose a specific genre of movie or TV show to watch when you sign in to your Netflix account. Users can also choose from different categories on the homepage based on what they have already chosen. Tracy Loisel, the CEO of Equipe technique, believes Netflix should select movies with more exciting and valuable storylines. Pretty sure we all agree with that.

It's still relatively early and not too late. If Netflix can incorporate the decentralized structure web 3.0 offers, it may gain a serious competitive advantage. How would they achieve this? You're probably wondering. They can do it using a decentralized (Web3.0) production house logic:

  • Pay royalties to everyone who helped make a film, TV show, or video game. Standardize the pay percentages for each step of the process, from writing a clear logline and an interesting first page to reviewing, approving, and setting up storyboards, posters, ads online, etc.
  • Use public ledgers (blockchain) to track what each professional has done for the various projects under development.
  • Speed up the completion of tasks and keep an eye on the quality. 
  • Take advantage of professionals who work online from home. While focusing on autonomous creators, provide value for people along the production process.
  • Make a payroll platform where any qualified professional from anywhere in the world could contribute and get paid.
  • Use cryptocurrency to make payments around the world.
  • Be completely open about the number of views and money each film or series brings in and the royalties that go to the people who made it.
  • Adopt a holistic approach that includes gamification and merchandising.

The focus of Netflix should be on building franchises. Gamification uses game elements (like scoring points, competing with others, and rules of play) in other areas. Companies often use this as an online marketing strategy to get people interested in a product or service.

Here's an example. While speaking with Tracy Loisel, he highlighted that he invested in STEPN. STEPN is a web 3 lifestyle app that possesses elements of both social-fi and game-fi.

By walking, jogging, or running outside, players can make a lot of money. Say, since STEPN has done well with this model, it might not be a bad idea for Netflix to hire their developers. Merchandising is another example. Stranger Things is a show that gets young people like myself interested. When I watch the show, I often look at people's "reactions" to it, play a related Roblox game, and buy associated items from online stores. So, Netflix should look forward to integrating all these income channels into a single platform.

Creators can invest in one project they find meaningful to them if they have the time, skills, and money to do so. If Netflix uses your idea, they will pay you based on how well the final product does. This means that your residual income could keep coming in as long as the product makes money. In the worst-case situation, your contributions will be exhibited as evidence of your career path because you have increased your personal portfolio. This strategy would turn traditional studios upside down by involving staff in a public/transparent production process. If Netflix didn't have to pay as much money upfront to make new content, it could focus more on making sure the quality was good instead of creating new content. To put it simply, this vision for the future of entertainment management will serve as a roadmap for the company to follow.

Honestly speaking, web 3.0's possibilities go well beyond only allowing users to view adverts or receive restricted access to certain platforms. Non-fungible tokens (NFTs), the new type of currency, can make it easier for users to participate in the free streaming media market. The "watch-to-earn" model can be easily incorporated into other "labour-to-earn" models, rewarding users for their willingness to participate and interact with adverts. Digital incentives can be swapped for actual goods or the ability to skip adverts for a set period, among other things, by users who participate and interact with advertisements regularly.

This hypothetical free streaming media model would not necessarily require the closure of paying service providers. Instead, users can choose to pay for ad-free streaming services, allowing huge organizations to keep this source of revenue. Watch-to-earn models can encourage people to watch and participate in commercials, allowing organizations to sustain healthy earnings even while offering their products and services for free.

Web 3.0 will formalize free streaming for everyone. Streaming media has moved consumers from paying TV to paid web services. Tracy Loisel also believes a model for free streaming media services improves the ecosystem for consumers, platforms, and marketers by allowing customers to control their time and data while getting compensated for consuming content they enjoy. In the end, it's not just him, we're all itching for this.

 

We only live once, but if we do it right, once is enough.

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