Discover more from Magic
Revitalizing The Streaming Business Model with Token-Gating-as-a-Service (TGAAS)
Author: Toju Ometoruwa
TGAAS: Streaming platforms, facing challenges with content oversaturation and monetization, can explore blockchain and Web3 solutions like token-gating-as-a-service (TGAAS) to unlock new revenue streams and boost user engagement.
Social Streaming:The rise of virtual 'watch parties' and Custom Token-Gated Communities allows viewers to engage with content collectively, providing a more personalized experience and enabling brands and influencers to connect intimately with their audience.
Artists & Brands: Platforms like Netflix and music streaming services can promote TGAAS to artists and brands, enabling them to offer exclusive content to their followers, from early show premieres for brand loyalty members to artist-created fan clubs, enhancing user loyalty and creating new monetization avenues.
As the digital landscape continues to evolve, streaming platforms like Netflix are under increasing pressure to reinvent their business models. The current model, which relies heavily on subscriber growth and content production, has come under scrutiny for oversaturation of new content and its inability to effectively monetize its biggest hits. However, the rise of blockchain technology and the principles of Web3 could offer an innovative solution. By adopting token-gating-as-a-service (TGAAS), streaming platforms could unlock new revenue streams, boost user engagement, and potentially redefine the entertainment industry.
Token-Gated Access: The Future of Streaming Services
A Web3 strategy that streaming platforms should consider is the implementation of token-gated access to content. This involves the creation of a token-based loyalty program, where subscribers are rewarded with exclusive access to content based on their ownership of a Non-Fungible Token or NFT. These NFTs could be purchased on the open market or earned based on criteria determined on or off the streaming platform.
In addition to unlocking access to exclusive content, token holders could access behind-the-scenes footage, bonus episodes, or early access to upcoming episodes. This would not only incentivize viewers to engage more with the platform, but also provide them with a unique, personalized viewing experience.
TGAAS Model: Social Streaming Within Custom Token-Gated Communities
The advent of Social streaming through virtual ‘watch parties’ has transformed the way we consume content online. It's no longer just about passive consumption; it's about engaging, sharing, and experiencing content together. One of the most innovative ways to do this is through Custom Token-Gated Communities, where viewers can live stream or asynchronously watch shows with people who have shared interests. This not only provides a personalized viewing experience but also opens up avenues for companies and influencers to connect with their audience in a more intimate setting.
Creating Custom Token-Gated Communities:
Creating your own Custom Token-Gated Community could be a seamless process.
For example, a user would create a business account on Netflix where they can set up a private community and only permit access to those who possess a specific token. This token could be from an existing off-platform loyalty program or minted by the user upon requesting access to the community. These token-gated communities offer a unique way to experience content together, irrespective of geographical boundaries.
Benefits for Companies and Influencers:
For companies and influencers, Custom Token-Gated Communities within Streaming platforms like Netflix can be a game-changer. Here's how:
Fan Watch Parties: Companies influencers can host exclusive movie or TV show screenings for their customers or fans. To join these screenings, subscribers must have a unique NFT provided by the host. Platforms like Netflix can strike licensing deals with these hosts to offer content that isn't available to the general public.
Engagement: These custom token-gated Communities could feature live chats for fans to share commentary and interact with each other while viewing the content. This provides a platform for companies and influencers to directly interact with their most loyal followers, fostering a deeper connection.
Monetization: Tokens that grant access to gated watch parties could be sold or auctioned within the streaming platform, creating new revenue streams for streamers and for hosts.
Audience Targeting: Token-gated communities on streaming platforms allow for better audience targeting. These communities help streamers like Netflix tailor content to specific audience groups. Companies can also benefit by using these communities to understand their customers' preferences better.
Brand Loyalty: By providing exclusive experiences, companies and influencers can enhance brand loyalty. Viewers feel valued and are more likely to return for more.
Example: Exclusive Barbie TV Show Pre-Release on Netflix for Forever 21 Loyalty Members
Consider this hypothetical scenario: Netflix is set to premier an original TV show based on the Barbie movie. But before it's available to all, Forever 21’s loyalty members get exclusive early access. Only those Netflix subscribers who also have previously registered as Forever 21 loyalty members can join this special viewing using their loyalty token.
During this exclusive period, Forever 21 token holders can not only watch the Barbie Show but also access other Barbie-themed content not available to other Netflix subscribers while engaging in discussions with fellow members through a live chat feature.
In this model, Netflix taps into a new B2B2C model by sub-licensing its original content to a brand that wants to use it to boost the value of its existing loyalty program.
Meanwhile, Forever 21 enhances its brand value by providing its loyalty members with a unique experience, reinforcing their exclusivity and deepening customer loyalty. Netflix could make such an offering available to multiple brands, or token gate older movies/shows that are still popular. Both options allow Netflix to generate additional revenue without relying on subscriber growth or increasing content production.
Music Industry: Token-Gated Fan Clubs
Another example of where Token-Gating-as-a-Service can be applied is with music streaming platforms like Spotify or YouTube. One of the primary challenges that creators face on these platforms is the inability to segment their fan base and offer exclusive, personalized experiences. Strict privacy laws make fan attribution and first-party data access challenging. As a result, artists receive surface level streaming data from platforms, and are limited in their ability to identify and reward their most loyal and engaged fans.
One solution is for streaming platforms to offer artists the ability to create token-gated fan clubs directly within their platforms. Creators would be able to grant access to fans based on multiple off-platform touch points, such as merchandise purchases or ticket purchase history. They could then share exclusive content within these dedicated sub-communities, further enhancing the fan experience. Spotify and Youtube could further enhance the experience by offering marketing services to promote fan clubs to other users on the platform, increasing visibility and engagement.
By intertwining exclusivity with engagement, streaming platforms can foster deeper connections with their audiences, offering them unparalleled experiences. From exclusive watch parties to token-gated fan clubs, the future of streaming is set to be more interactive, personalized, and rewarding. As we venture into this new era, both creators and consumers stand to benefit, heralding a renaissance in the world of digital entertainment.
Thanks for reading Magic! Subscribe for free to receive new posts and support our work.