YouTube's Decline A Web3 Opportunity?

in LeoFinance11 hours ago

To be clear, this article is not meant to imply that YouTube is going away. We are dealing with a component of Google that generates billions of dollars each year in revenue.

So what do I mean by decline?

This is from the perspective of the content creators. According to many, the payouts have declined in 2025. Some of the larger influencers posted how their numbers dropped off a great deal.

Why this happened appears to be a monetary move. Google is now pushing shorts. It seems this does not pay at the same rate as longer content (if at all). Hence, the company makes more money off the advertising because it is not sharing with the individuals.

There is also the assertion that Google is cuddling up to the legacy institutions. The media outlets are starting to be promoted more (according to the influencers), taking views away from those channels.

What does this mean for the future? It is what I will dig into.

YouTube's Decline A Web3 Opportunity?

So far, Google is the only game in town when it comes to video uploads from individuals. I realize other social media platforms allow it. However, when it comes to monetization, YouTube is the only real opportunity.

Of course, this stems from the fact it has the network effects. When it comes to the digital world, that is the entire game. Those with network effects stand to dominate. Over time, the platforms just get stronger as people further impact what is taking place.

This is why the "decline" of YouTube is not as most would understand. It is still going to have billions of users. The difference could be a shift away from individuals content creators to the larger entities.

One variable in this is going to be AI. How will Google choose to handle this? My guess is the company will provide its own content, furthering its return from the advertising. Think about that for a moment. Why would Google pay out on AI generated content when it can use Gemini to do the same thing? It simply can set up thousands of accounts to post the videos.

If my assertions is correct, most of the information we will consume in the next few years will be AI generated. Certainly there will be a place for human content. That said, when it comes to basic stuff like news and information, AI can provide that without a problem.

Whatever the evolution, it appears that individual content creators are being squeezed out. This seems to be a conscious move by Google, taking the platform in a different direction.

The question becomes whether this is an opportunity for Web3?

Web3 Ready To Step In?

Is Web3 ready for prime time?

When it comes to video, the answer is no. Actually, there is no real Web2 competitor. Rumble is the most successful, garnering over 50 million monthly users. The challenge there is that few are using it. People upload but the views do not exist. If there is monetization, it is minimal.

Could Web3 be the solution? Applications like 3Speak appeared but lack the search and functionality to compete. Honestly, most applications outside Big Tech are nothing more than abyss for data. It gets entered but never retrieved.

Here is where platforms like Google excel. The algorithms are such that content is continually provided. Most of us have gotten caught up researching something only to burn hours watching endless videos on a topic.

Whether we agree with the psychological design, we cannot contest the effectiveness of it.

How many Web3 applications do you see with this feature?

Going back to the original problem, as spelled out by YouTube channel owners, is long form content dead? The success of TikTok is beyond dispute. I would presume that Google is also enjoying success with shorts on its platform?

If this is the case, perhaps the shift away from individual long form is a smart move. Why not cater to the larger players? In spite of the decline, there are still millions of viewers on traditional channels, especially when it comes to news. If these are being promoted over individual channel operators, we can see how the numbers can grow.

Is this the start of the recapture of eyeballs by the traditional entities? Could this be a de facto "partnership" with Google? It is something we are going to have to watch.

In the meantime, it might be smart for Web3 to serious take a look at this opportunity. This is going to be a slow process since kicking off network effects is a long slog. We are dealing with a defense that is near impenetrable.

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It's the process that'll change the way we consume content itself is changing. I suppose as A I starts dominating folks would always want authentic stuff...

Could Web3 be the solution? Applications like 3Speak appeared but lack the search and functionality to compete. Honestly, most applications outside Big Tech are nothing more than abyss for data. It gets entered but never retrieved.

If they improve the recomendation and interaction algorythm and insert an sustainable ads payments, maybe yes have a chance to be the solution. While it pays only with token inflation it will not.