VSCreators and consumers are hungry for shorter videos, greater privacy, and lucrative monetization opportunities. This is leading to the growing popularity of new apps that provide users with more digestible and less time-consuming content, powered by innovative technologies such as Watch-to-Earn and NFT. What impact will this have on social media giants such as Instagram and TikTok?
Shorter videos are gaining popularity
Shorter video styles have noticeably gained popularity. With platforms such as Coub.com pioneering the style more than a decade ago, Vine, Musical-y and now TikTok have all seen their fair share of cult interest among young people. More recently, social media giants such as Facebook (META), Instagram (META) and YouTube (GOOG) have joined the party with “Reels”, “Stories” and “Shorts” becoming commonplace terminology. Maybe it’s just a sign of the times, just a fading trend, or maybe it’s something deeper.
New research reveals that our attention spans have dramatically decreased over the years. In 2000, it was 12 seconds. Now we’re looking at an average of 8.25 seconds. Perhaps with content availability at an all-time high, pushed further by streaming services like Netflix (NFLX), Spotify (SPOT), and YouTube, we’re diving into it all, and our minds are adjusting. to deal with the wide variety of options. In any case, due to the decrease in our attention span, shorter videos become more digestible and engaging. One of the key takeaways from Vidyard’s 2022 ‘Video in Business’ report is that for videos under 60 seconds, 62% of viewers tend to watch until the end, while only 26% have completed the videos. videos longer than 20 minutes.
Shorter videos are flooding the market, and the result is endless variety. Indeed, many mobile apps these days offer easy-to-use toolkits for creating short videos. This contrasts with the world of content creation ten years ago, where at least a quality camera, editing software and lots of time were needed. A recent report published by Statista pointed out that the number of smartphone users in the MEA region has almost doubled from 86 million in 2014 to around 174 million in 2019. This is double the number of potential content creators.
With the above in mind, the Redseer Short Form Videos report made some interesting predictions when it comes to monetization opportunities. Indeed, over the next eight years, monetization opportunities in the short video space are expected to grow 127x due to their popularity. This number is certainly enough to overturn the profits of the big social media giants, so it is important to understand if they are starting to feel the pressure.
End the old, make way for the new
As the “short video” style becomes the preferred type of content for consumers and creators, what happens to static image-based platforms like Instagram and long-style video publishing services like Youtube ?
Although Instagram announced its one billion daily active users in June 2018, it hasn’t posted an update since. Indeed, its year-over-year growth fell to single digits in 2019 and eMarketer predicts that there is no end in sight. Even streaming services such as Netflix are reporting losses, and consumer preference for shorter forms of entertainment is certainly an influential factor here. We cannot ignore the fact that ad rates on YouTube have dropped to almost 50% from their previous highs, simply because there is a lack of demand for advertising on the platform. But what is really causing this mass exodus of the content creation giants of the 2010s?
Above all, Gen Z creators and consumers are simply not interested in these content transfer mediums. Because of Instagram’s platform structure, TIME Magazine called Instagram “the worst social media for mental health” and Gen Z knows it. Additionally, monetization and growth options for creators are minimal compared to platforms such as TikTok, where fame is an accessible goal.
Social media users are tired of unavoidable double ads and intrusive, almost scary targeted ads. First and foremost, they crave privacy, and second, they are no longer content to be treated like a commodity.
So there’s a need for privacy-focused short video solutions that reward both consumers and creators for their time, not just with exposure, but with money.
Watch-to-Earn: A Knight in Shining Armor?
Watch-to-Earn is a relatively new term, which originated thanks to short-form video platform Coub.com with its foray into blockchain, but the concept has been around for quite some time. As the name suggests, it allows consumers to earn money by watching videos. Previously, there were several attempts to offer a Watch-to-Earn model to users, but none succeeded.
Coub’s short-video style has given way to highly successful platforms such as TikTok, but his recent moves are paving the way for something quite spectacular. Not only does it offer a Watch-to-Earn model where users will get paid to watch the platform’s short videos, but creators are paid proportionally based on the popularity of their coubs.
The game-changer, however, is that it all happens on the blockchain, as each Coub is an NFT that can be traded including royalties. This means that coubs can be bought and sold as investments, where they earn the owner royalties based on the popularity of the video.
Given that the platform already sees millions of users creating new videos every day, the transition to Watch-to-Earn could be an important development in the Web3 market.
The popularity of short videos is skyrocketing, there is a mass exodus from traditional media, and there is a gap in the market for a platform that combines the decentralized nature of Web 3.0, blockchain, addiction to the trend of short and lucrative videos, Watch-to-Earn opportunities for the community. We shouldn’t ignore that for businesses, short videos can be incredibly effective ways to reach their target audience; they don’t require big budgets and have unprecedented potential to go viral. As a result, short-form video platforms could see monetization reach $100 billion. Analysts predict that in India alone, this figure could surpass $9 billion by 2030.
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