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YouTube recently announced its expansion into NFTs, allowing users to "own" videos produced by creators. In a blog post, the site's chief product officer for streaming, Neal Mohan, wrote that the controversial new stage of the internet, Web3, opens up new opportunities for creators. Blockchain and non-fungible tokens enable creators to develop deeper relationships with their fans. "A verifiable way for fans to own exclusive videos, photos, artwork, and even experiences from their favorite creators could be an enticing prospect for creators and their audience," the article states. However, Mr. Mohan commented in the report that YouTube must "approach these new technologies responsibly with considerable care."
What is The Effect of This Launch?
YouTube's statement that creators have the right to be the owners of their content is unclear. NFTs do not automatically transfer copyright to owners. They are also detrimental to the environment because the energy required to mint them is enormous. Researchers estimate that NFT has the same carbon footprint as someone living in the European Union (EU). In addition, Cambridge University has extensively documented and analyzed the price of Bitcoin's environmental impacts. According to the University of Cambridge, the Bitcoin network consumes more energy than the entire Netherlands. In addition, YouTube asserts that sustainability has been a core value of Google since the company's inception. Furthermore, it states that by 2030, Google aims to be the first prominent company to operate carbon-free. However, it is unclear how the incorporation of NFTs conforms to this promise. Along with the NFTs, YouTube will release upgraded editing tools and effects for its TikTok Shorts clone. In addition, YouTube will offer its users the ability to respond to individual comments via the creation of Shorts. The development of collaborative live streaming intends to encourage more casual conversation and interactions with other creators. Additionally, creators can define guidelines for channels to monitor comments on their videos more effectively. YouTube further stated that it is "thinking big" about the metaverse. Metaverse is the digital world that companies like Meta and Facebook consider the future of the internet. However, it has been criticized by some as apocalyptic. YouTube asserts that it will work to add more interaction to games and enhance their realism by bringing virtual worlds to life for viewers.
What is an NFT video?
A video NFT refers to any video created as an NFT or a non-fungible video token. For example, any image NFT in motion is a video NFT. These NFTs are bought and sold in the same way as images and GIFs. They are acquired and encoded with the same software used to encode cryptocurrency.
Should content creators produce their own NFT Videos?
By selling their works, content creators and artists have an opportunity to monetize differently. You can configure your NFTs to receive a percentage of each sale. As a result, you will continue to profit long after selling your work. NFT videos are revolutionary because they enable content creators to market their work directly to a large global audience without a middleman distributor. For example, artists like Kings of Leon sell their new albums as NFTs. Tom Bilyeu, for instance, is laying the foundation for content creators who wish to generate income through NFTs. However, Tom only created three NFTs rather than multiple NFTs for each event ticket, merchandise discount, and insider access ticket. Each NFT has different privileges and access levels. Similarly, content creators should launch NFT, which provides access to exclusive videos. With this, they will be able to monetize their content.
Will video NFTs impact the video industry?
Blockchain technology has transformed how video content is recorded, stored, delivered, consumed, and even bought. Here are a few of my predictions for this exciting and unpredictable future:
- Bypassing the middlemanNFTs have already disrupted the music industry by rendering distributors obsolete. Independent filmmakers follow the same pattern. The purchasers of NFT videos opt to monetize the videos conventionally.For example, Jennifer Esposito is attempting this strategy by financing her debut feature movie with NFTs and an unconventional public offering to purchase shares in the movie. In addition, Quentin Tarantino has also released NFTs based on uncut scenes from Pulp Fiction.
- New strategy for building a fan base before the film's releaseThe release of posters or exclusive scenes in NFTs before releasing a film or video can generate interest in the concept.
- Offering exclusive editionsAlthough limited edition DVDs are not in production anymore, NFT provides a new format for releasing films and videos in special editions.
- Monetization for upcoming YouTube creatorsToday, the intense competition on YouTube makes it difficult for small-scale creators to monetize their content. The majority of creators earn most of their income from brand deals rather than AdSense. However, video NFT provides an innovative method for creators of all types to produce original and monetizable videos for their audience.
- Decentralized video storage reduces the amount of censorship.The decentralized storage of video enables sharing between users regardless of platform restrictions. In this way, creators could bypass restrictions on their output, publishing, and profit from content that YouTube and Instagram may not recognize.
Conclusion
YouTube is not the first social media platform or technology giant to announce plans to implement Metaverse and NFT. Meta, Snap, and others have adopted the drill already. However, YouTube has a larger user base and is anticipated to reach a substantial number of Internet users. Since Mohan made the brief announcement, it is anticipated that he and the YouTube team will come forward to address the raised concerns. We will seek additional partnerships to maximize the Metaverse and Web3's potential until then.