According to YouTube CEO Susan Wojcicki, the firm is considering launching YouTube NFTs in the future which can act as one more stream of revenue source for content creators.
In a letter published by the CEO, she stated:
“We’re always focused on expanding the YouTube ecosystem to help creators capitalize on emerging technologies, including things like NFTs, while continuing to strengthen and enhance the experiences creators and fans have on YouTube”
The note was a subtle hint of YouTube’s plan to adapt to the new technology. However, the YouTube brand name will play an important role in its success.
Source: YouTube
Once released YouTube NFTs are highly likely to be more popular among users of cryptos given that they have enjoyed some form of exposure to blockchain technology. This is due to the fact that they would already have had some kind of relation with cryptocurrencies or know what they are all about if not invested so far.
Once launched this new functionality will prove extremely beneficial for content creators on the platform who currently struggle with monetizing their videos. The biggest benefit is the decentralized nature of NFTs which help protect content owners from copyright infringement and unnecessary censorship. These characteristics are expected to enhance security for YouTubers whose earnings could be at risk otherwise. As a direct result of this, we can expect to see a significant rise in YouTube engagement and revenue for content creators.
Today the YouTube platform has exceeded 1.8 billion users with an average watch time of over 40 minutes per session on mobile alone. The integrated NFTs will help improve the reliability of YouTube which is currently under fire for its censorship practices that have greatly affected some content creators who are wrongly blocked or demonetized simply because their views do not agree with those of the firm’s management team.
With cryptos being largely used for peer-to-peer transactions, there is an increased chance that people will move away from traditional financial systems if they are offered more conveniences by decentralized apps or platforms using blockchain technology.
Following the news, YouTube gaming CEO has also moved to Polygon Studios. This shows the emergence of new technology in the mind of YouTube members.
In her letter to the YouTube community, which was published as a statement, Wojcicki stated that YouTube intends to focus its efforts on gaming and purchasing. The CEO said that YouTube is thinking to make new Web3.0 “as a source of inspiration,” focusing on the the possibilities of crypto, decentralized autonomous organizations (DAOs), and NFTs.
NFTs are now considered comparable to other platforms that have recently released or are rumored to be working on their own versions of NFT functionality.
In the past 12 months, google trends suggest that NFTs search has increased by 5 times. ROCKI has released their own decentralized platform where users can buy music using NFTs. On a similar line, we can see YouTube NFTs to also come with such NFT plan. The fast rise of this new technology should act as a warning to all other businesses that they must adapt or face stiff competition from innovative startups who are already one step ahead of them.
Companies like Facebook, Microsoft and even Google have previously declared plans to release their own cryptocurrencies but so far none of them have followed through with what they promised leaving space for quite a few players in the crypto sphere to step forward. Users who own a JPEG may now use a hexagonal profile photo on Twitter to display their prized possessions, and Reddit is considering it.
When users can convert cryptos instantly and seamlessly thanks to third-party integrations, we will see a big spike in the interest for cryptocurrencies on YouTube. As a result, Google which owns YouTube is likely to see an increase in crypto-related search queries leading to potentially higher AdSense revenue from these sources. Despite the fact that the cryptocurrency market has already shed over $500 billion by last week of January 2022, the NFT industry appears unperturbed.
NFTs are not the only ones that will be created on YouTube. It is likely that the functionality of NFTs will also be used for other content including music, live shows and more. Many YouTube NFTs makers have already created and sold their NFTs on Opensea-based NFT markets. YouTube did not gave any further details on what NFT features could be but it is possible that YouTube would integrate features that would share revenue of makers.
All these factors are expected to drive up traffic on YouTube with viewers spending more time watching videos. This is expected to translate into better revenues for creators who may see twice as much revenue per video as they do now.
Several viral YouTube videos have already been converted into NFTs and sold on the open market by their creators. Last year, the Charlie Bit Me NFT went for $761,000 after being auctioned off. The Charlie Bit Me NFT, which sold for $761,000 last year, featured a baby biting his brother’s finger. David After Dentist is a video of a frightened youngster following dental surgery that has been sold as an NFT for over $11,000. It is becoming apparent that the YouTube community and content creators alike are embracing the idea of selling NFTs as a way to generate revenue and fund their content.
The last month has seen a flurry of NFT related announcements which all point to the potential that NFT usage holds for the YouTube NFTs community. We can expect to see more viral videos being turned into NFTs and sold on Opensea’s decentralized platform. The fact that users are able to own something rare, unique and digital is making collecting value in this way so much more rewarding than it was before.
On the other hand, Google may also release its own revenue sharing program where creators could monetize their content through selling NFTs directly on YouTube rather than relying entirely on ads. Would you buy viral videos in the form of YouTube NFTs if they come up with this plan?
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