The unanticipated rise of COVID-19 has been the harbinger of extraordinary growth of the global OTT market. The OTT market had witnessed a growth of 15% even before the lockdown started in 2019. In 2020, with the pandemic on the rise, lockdowns getting extended, and work from home being the new norm; people are mostly reluctant to venture out. So talking about Netflix, Amazon Prime [or even ‘Channels’ :)], Mx Takatak, Hotstar, SonyLiv, Hulu, and more, its the binge watching number of watch hours/user and personalized content that comes to mind.
But, when we talk about hyper personalization per user, the most important aspects with respect to SVOD(Subscription video on-demand) personalization is new content and subscriptions. On the same lines, here’s a proposal…
An architectural overview of how pay-per-view decentralized finance would function in the OTT industry
The OTT platform will cater to the users via both web-based and application-based services. The user centric architecture delineates from the contemporary subscription-based payment model using the blockchain technology. Each user will be uniquely identified and will be part of the blockchain of decentralised ledgers, which will contain pay per view information. The users will engage in viewer sessions with minimum latency due to a multi-content delivery network (CDN). The recommendation engine will provide customized suggestions of multimedia content to the users after curating data from the user data and multi-media content repository. The multi-media content and user data will be stored in databases in NoSQL databases such as Amazon DynamoDB in order to store real-time structured and unstructured data. The content curation would be done in two methods. First, organic content creation or production houses will push their multi-media data. Second, real-time streaming would be supported for registered content individual creators. The content would be encoded in High Efficiency Video Coding (HVEC) by Amazon Web Services (AWS). Finally, the compensation for corresponding to the content will be based a dynamic earning model which will map the content to viewership sessions and proportionally process the earnings basis a cumulative earning algorithm. The entire system will use various amazon web services and will run on Amazon Elastic Compute Cloud (EC2).
There are two aspects to consider in this model:
- Consumers will benefit based on usage patterns
- Revenue model will shift to an even more dynamic pricing
As any technology introduction we can categorize the stakeholders into these arms:
- Innovators: People who are pioneers of this tech and people who admire technological advancement over stickiness to the current VOD model ie their Netflix or amazon prime account
- Early Adopters: People who will adopt when they see promise. They will not be the Guinea pigs for a tech with good prospects with poor feasibility (as is the case with any disruptive innovation)
- Early Majority: Once the model make rounds, a large critical mass of OTT content consumers will flock towards it in acceptance
- Late Majority: Unless probed this category does not feel incentivized to make the switch
- Laggards: This category differentiates itself based on behavioral and psychological aspects. These are people who stick to the old ways and do not like change in general and treat any innovation with the same regard
It would be interesting to witness this shift, if at all.
What are your views? Do share them in the comments :)