Blockchain helps content creation industry giants like TikTok in order to solve the profitability challenges.
TikTok is the fastest growing social media app in the history. It created in 2019 and could have over 800 million users so far. Most of the users on this new app are young people. The data from TikTok shows that 69% of global audiences are between the ages of 16 and 24.
Although TikTok could grow fast in the past years, it could not be as profitable as its competitors like Instagram. In fact, the IT infrastructure costs is the problem and blockchain could be the solution.
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Blockchain helps content creation industry; challenges that content creation industry is facing with
Currently, TikTok, a Chinese content creation platform, and the other short video content platforms have high expenses. In fact, the majority of expenses are related to servers. The more users join such these platforms, the demand goes higher for high resolution videos and the companies need to upgrade their servers.
TikTok has around 800 million active users per month. Every day millions of videos uploaded on its platform. As a result, the company pays around $8 million only for content delivery structure per month.
As an example of how much the cost of severs considers as a big challenge for service providers, let’s make a brief of reports stated by these companies. For instance, Trembit is the software development company. The statistics and data from this company show that TikTok has huge obstacles in order to become a profitable platform.
Another example, Todou known as “Chinese YouTube” reported in 2011 that their bandwidth expenses were around $28.6 million. This amount accounted only 42.1% of its cost revenue.
Previously in 2019, Bilibili, another “Chinese YouTube” platform revealed that they had 130 million active monthly users. For this amount of users, they spent $132 million on servers and bandwidth.
Kwai known as “Chinese Instagram” also struggling with the same problem. They are all having very hard time making any profit.
Blockchain decentralized storage as the solution
Blockchain decentralized storage could be the solution for TikTok or other content creation companies. In this case, they can use multiple nodes on a peer-to-peer network. As a result, it has lower storage costs compare to other forms of cloud computing. In this case both the company and nodes can make profit. It makes more profit for platform as they pay less for the data storage and transfer.
By using hundreds or thousands of nodes globally the companies would be able to gain cheaper and quicker access to contents such as audios, videos, and photos.
TikTok and Bilibili could the pioneers of the industry become the game changers. In fact, by using blockchain technology and network, not only they can initially boost their profit but also could be closer to their users.