YouTube, the global leader in the sphere of video sharing, has presented its official position on the latest tendencies in the sphere of blockchain solutions, NFTs, and Web3 in general.
YouTube to Bet Big on NFTs?
According to its recent blog post, the company identifies Web3 development as one of the major anticipated tendencies in the year 2022. In particular, such technologies offer additional functionality in regards to value creation by developers with the possibility of ensuring the better recognition of their audience’s needs and preferences.
The improvement in the quality of services delivered and the continuous interactive communication with fans should positively affect the level and structure of demand for services offered by companies that effectively integrate the latest blockchain innovations.
YouTube managers also positively perceive new business opportunities offered by the NFTs as the ability to effectively protect digital ownership rights and consistently expand the relevant digital offerings that reflect the latest industry trends.
Although new forms of collaboration with blockchain experts and other companies may be required, YouTube’s representatives assume that the company will be able to generate considerable additional revenues in the following months.
The major direct applications of Web3 technologies by YouTube include improving fan verifiability and expanding digital ownership to such spheres as art, photos, and videos.
YouTube has already achieved some progress in this sphere by successfully implementing the Partner Program that allowed attracting two million users after the introduction of new opportunities for creators to earn income in 2021. Therefore, the company expects the number of users to rise proportionally to the introduction of blockchain solutions.
New forms of monetization for users will also imply additional options for obtaining more direct and indirect revenues for YouTube.
At the moment, its users watch about 700 million hours of video content daily, and the subsequent growth may create a more solid basis for becoming the major revenue generation not only in the video sharing but the entire entertainment industry.
As YouTube is currently owned by Google, the media giant may also provide additional financing in the near future to facilitate the adoption of relevant blockchain solutions and their integration with the company’s traditional services.
As the general consensus among YouTube leaders on Web3 has already been achieved, more detailed plans and initiatives may be announced in the following weeks.
Potential Impact on the Entertainment and Crypto Industries
YouTube’s official position on Web3, blockchain technologies, and NFTs may be highly important for shaping the structures and performance of both the entertainment and crypto industries. The reason is that YouTube accumulates considerable financial and organizational resources that may allow implementing ambitious projects within the minimum timeframe.
Other entertainment companies that operate in the digital sphere will have to develop urgent and effective responses that will enable them to maintain their current competitive positions. In particular, they should also offer NFT-related options to their users as well as achieve maximum integration with blockchain technologies in the near future.
New gaming and interactive solutions may be offered to users with the possibility of effectively maximizing their satisfaction and user experience. Companies may follow a hybrid approach that will presuppose both creating their own NFTs or Web3 products and allowing users to create and share their content.
Thus, companies may perform several complementary functions simultaneously. Although such a strategy may require thorough planning and effective risk management, the potential for profit generation may also be considerable.
The crypto industry may experience rapid growth, facing the more intense adoption of its technologies and market offerings by the leading hi-tech and entertainment giants.
NFTs and Metaverse projects may attract additional experts and crypto developers due to the need to provide the adequate market response to the growing demand for such services. Crypto experts may become better-integrated into all issues related to entertainment and traditionally off-chain spheres.
The demand for crypto oracles such as Chainlink that will use the information from both the crypto and external markets may also increase significantly. In any case, the rates of innovations in the crypto industry may be effectively maximized due to considerable financial and institutional support.
Although the structure of crypto innovations may be subject to change, the positions of the entire crypto ecosystem can be solidified. Therefore, YouTube’s official statement should be viewed as an indicator of significant changes in this segment for the following months.