Designing a video monetization system

28.08.2018   Anton Bondarenko

Problem to be solved

On the one hand, there is the problem of monetizing video content through advertising - advertising revenue is not enough to recoup the creation of new content. And this problem is especially relevant for Ukraine. On the other hand, the introduction of paid access to video content often leads to another problem. Because people do not want to pay for this access, having various alternative opportunities to view the desired video for free in a “pirated” form. And this is especially common in Ukraine. This impasse is pushing to search for a fundamentally new solution.


Our solution

Our solution is to make the audience accomplices, to engage them in active promotion.

First, we do not get rid of the need to pay for access to video content. Because, as described earlier, the advertising money is definitely not enough to pay for the creation of video content, making it completely free for the viewer. And we introduce a monthly subscription fee, the size of which is potentially lifting for a wide audience (suppose it is 50-100 hryvnia in Ukraine, although the amount of this amount can still be discussed).

Secondly, we create a platform (online system) to which both viewers and creators (copyright holders) of video content can voluntarily join. No coercion. Everything is only voluntary. Here can be placed as short news videos, as well as longer programs and movies.

Thirdly, viewers of video content can influence on which of the videos the money goes from their subscription fee. If a person clicks “like” (“like”), then he likes the video and he agrees to pay for it. If he clicks Dislike, he does not like the video and he will not pay for it. If the viewer did not respond (he didn’t decide whether he likes or dislikes this video), then he will be considered to have “abstained” and the money will not be paid for this video either. Everything is completely voluntary - the viewer has the right to abstain.

But the crucially important point is that every video you like is not paid for with additional money, but in proportion to the total number of videos that each viewer has set “like” (like). For example, if the subscription fee is 100 hryvnia (we repeat that the fee is only indicative), the “A” viewer has set 50 likes per month, then for each of these videos, 100/50 = 2 hryvnia will be paid out of his money. And if the viewer of “B” has set 1000 likes per month (well, a lot of people looking and loving is a plentiful viewer), then each of these videos will be paid 100/1000 = 0.1 hryvnia or 10 kopecks.

 Why is everything so difficult? On the one hand, “psychologists from marketing” determined that every time a person is forced to pay for something (that is, to part with his money, even with small money), he suffers, albeit a little, but suffering. A man does not love to suffer. On the other hand, if a person has already paid a monthly subscription, then within the next 30 days he can view and evaluate any desired number of videos, and can also give “like” to an unlimited number of videos. And while he is motivated to put "like" and "not like" more honestly. And it will feel itself involved in the choice of where this money will go - which producers (copyright holders) will get the video content.

In fact, we will not bore the viewer with complex calculations, but will only inform him about the number of videos that he has set “like” and “not like” in the current month. No complicated data.

Fourthly, viewers' ratings (“like” and “dislike”) are used not only for distributing money between producers (copyright holders) of video content, but also for ratings, and also, based on complex mathematical calculations, to determine which new, fresh, other videos recommend first of all to each viewer in connection with his preferences and interests. In addition, you can subscribe to other users of the site, which the viewer considers authorities for themselves (as a whole or in a particular topic) and then it will be possible first of all to see in the recommendations for viewing those videos that were well rated by “authorities”.

Only after each monthly payment is completed, each of the viewers on the site can calculate how much money each of the producers (right holders) of video content will get. But on the other hand, each producer (copyright holder) of the content will be able to see the number of new “like” marks daily, and accordingly will be able to understand the relevance of their content. And gradually, with a 30-day delay, you will see your income in money. To start using such a project, viewers do not need to immediately start paying a monthly fee. Everything is voluntary. But only after the subscription fee is paid, it will be possible to take advantage of all the convenience of video content selection algorithms with regard to individual preferences. In addition, public opinion can reasonably induce people to become a regularly paying project participant, motivating people to more actively influence the distribution of money between producers (right holders) of content.

 As a result, the system will gradually be joined by a multitude of viewers and producers (rightholders) of the content.