The gaming industry is BIG BUSINESS and growing. It is predicted to reach $115 billion by 2018 and $130 billion by 2020. Video gaming is the biggest entertainment industry in the world, and eSports viewership has overtaken viewership of traditional sports. It is, after soccer, also the biggest global sport.
When we add blockchain, smart contracts and crowdfunding to the mix, a whole new world of business and investment opens up.
It is, therefore, no wonder that there are multiple businesses springing up around the world, hoping to cash in on this phenomenon. One of them is Play2Live (P2L).
One of the claims made in the P2L White Paper is that, unlike other platforms, it addresses the whole range of needs of the gaming and eSports communities. Most other companies deal with these needs in a fragmented manner.
We decided to test this claim by comparing the P2L offering against other start-ups who are using blockchain technology in the gaming sphere.
1. What does Play2Live offer?
Play2Live (P2L) is a decentralized streaming platform for streamers, gamers and eSports fans. Its goal is to create an ecosystem where every participant, including the viewer, the streamer and the eSports tournament organizer, is part of an interactive system. Everybody can be part of peer-to-peer interaction and everybody — even the viewer — can earn money.
P2L has developed a blockchain, called Level Up Chain, that provides a completely new level of virtual interaction for all participants — and provides a mechanism for monetization of every aspect of it. It has a token called Level Up Coin (LUC) which is the currency within the system. It can be converted very easily to other cryptocurrencies or to fiat money through an exchange gateway.
The problem with most other gaming sites has been the lack of opportunity to monetize your interest or your input to the business. Monetization has generally been limited to:
· Pre-roll adverts or the YouTube Partner Program — Streamers can turn on ads for their content and earn revenue from them. The problem here is that viewers do everything possible to avoid watching these advertisements.
· Affiliate marketing: Streamers advertise the products of other people and earn a commission on every item sold
· Advertising: Advertise other people’s products for a flat fee
· Product creation
Plat2Live allows for monetization by these methods — and then adds 11 more, made possible by interactivity and voting mechanisms only possible because of blockchain. P2L itself benefits from 15 revenue streams, making this a viable business model. However, participants share in this revenue and/or can earn or win LUC in most of them, making this a very attractive platform.
In summary, these streams include the following:
A. REVENUE FOR STREAMERS
1. Subscriptions to the streamer’s channel
All users can watch any broadcast for free and with no limitations. But additional privileges are available for those who subscribe to the channel (e.g. writing into the chat, use of chat icons, prizes during tournaments). The platform shares this revenue with the streamer.
2. Premium subscriptions
Viewers with premium subscriptions enjoy special privileges (e.g. gifts from publishers, access to exclusive broadcasts, special recognition on the P2L site). Revenue is shared with streamers.
3. Donations
Viewers transfer tokens to the streamer to demonstrate support, or for the streamer to read out special messages from them. The platform charges a small commission and the rest of the revenue goes to the streamer.
4. Assigning a task to the streamer
This is one of the unique features of the site, as it allows viewers to design the content of the stream. Viewers can vote with LUC for the streamer to undertake certain tasks (e.g. move to a different difficulty level, change the game, etc). Revenue is shared with the streamer.
5. Sale of badges of rank on the platform
Emoticons, chat badges and other distinctive features for users are available in the chat during streams. Revenue is shared with streamers.
6. Marketplace with prizes from advertisers
Advertisers provide prizes and gifts to P2L. These prizes are made available to streamers to distribute during their broadcasts, in exchange for promotion of the advertisers.
B. REVENUE FOR STREAMERS AND TOURNAMENT ORGANISERS
7. Creating content on the platform
This is for tournaments. Viewers can vote with tokens for the format they want for the tournament. Revenue is shared with tournament organizers and streamers who develop special content according to the criteria set by viewers.
C. REVENUE FOR STREAMERS AND VIEWERS
8. Advertising
Pre-roll, mid-roll and post-roll commercials can be run during streamer broadcasts. Banners and branding can be set up on streamer sites. The platform allows for comprehensive marketing campaigns and provides a transparent performance tracking system. A unique feature is that advertising is disabled, by default. Viewers can support the streamer by choosing to watch the advertising. Revenue is shared with streamers. and viewers earn LUC for watching.
D. REVENUE FOR VIEWERS
9. Tasks from the streamer to users
Another unique feature is that streamers can assign tasks to viewers, who then earn LUC tokens. The platform charges a small commission.
10. Promotion of the broadcasts of a favorite streamer
Viewers can vote with their LUC to promote their favorite streamer to a higher spot on the main page and elsewhere. Revenue goes to the platform, but users who are active with their votes share in the distribution of tokens bought back from the open market.
11. P2P CDN
Users can share part of their computer resources with others in return for LUC. This is direct revenue for users.
12. Betting and gambling
Various bookmakers are integrated into the site. Viewers can place bets on several bookmaker websites simultaneously, without having to move from the Play2Live website. Bets are placed in LUC. Revenue is shared with the bookmakers. Viewers can win LUC.
13. Totalizator of eSports events
Viewers can place bets with LUC tokens during streams of eSports events. No third party (e.g. a bookmaker) is required. This feature allows for the full gamification of the platform. The platform charges a commission on these bets. Viewers can win LUC.
E. REVENUE FOR OUTSIDE PARTIES
14. Purchasing of games at partner services
P2L enters into agreements with suppliers of games that are streamed on the platform. Revenue is shared with the suppliers.
15. Duels between players
Viewers watching a stream can challenge each other to duels on the game, using LUC to bet against each other. Viewers are redirected to partner sites where they can play the game face to face. Revenue is shared with these partner sites.
2. Competitor analysis
Play2Live does well in comparison with existing, non-blockchain-based platforms and also with newer, blockchain-based platforms.
Existing streaming and sharing platforms
Blockchain and tokenization are central to the P2L business model. Without them, the interactivity and monetization of activity on the platform would be impossible.
This means that existing streaming companies like Twitch.tv and YouTube are not really competitors. It would be prohibitively expensive for them to convert their current businesses into a “blockchain version”.
Steam is an online gaming and entertainment platform, for PC, Mac and Linux, providing access to thousands of games, videos and films, and with more than 270 million users. User-generated content, in the form of mods, is rewarded. Players can earn rewards in the form of trading cards and other in-game items. However, Steam is not blockchain-based and has a record of user accounts being hacked. For a short while it accepted Bitcoin as a form of payment on its platform (using BitPay to handle these transactions), but it recently suspended this option, and it does not have its own token.
Platforms based on blockchain
There are multiple start-ups aiming to leverage the benefits of blockchain and smart contracts to host tournaments, facilitate the purchase and exchange of virtual assets, allow for legal betting, develop player skills and build communities. For example:
- Startups that offer multiple services
· Flux is a gaming platform which allows everyone in the gaming industry to earn — player, trader, developer, streamer, or investor. The FLUX token is the only access and payment tool in the ecosystem made up of platforms for matchmaking, developers, trading, streaming and crowdfunding. The platform recognizes the difficulty that developers have to attract customers to their games and to prevent player churn. The revenue model, therefore, rewards gamers who develop their skills on a particular game, stay on the Flux platform and refer others. Developers can crowdfund the development of their games and gamers can invest in the games they enjoy. Competition is encouraged and no fees are charged for competitive games that are loaded onto the platform. Players can earn the FLUX token in games and tournaments and can use them in the Flux store. Streamers earn tokens for broadcasting games. Flux revenue is in the form of commissions on transactions and bets.
· DLive is the first decentralized live streaming platform on the Steem blockchain. Steem allows people to be paid for creating content and curating (voting or commenting on) content. The DLive focus is on ensuring that broadcasters (streamers) can monetize their content from the first day, without the need to reach certain levels or be on “affiliate” programmes, as for sites like Twitch. DLive also takes zero transaction and commission fees from broadcasters and viewers (e.g. for donations and subscriptions), and viewers are rewarded if they up-vote or down-vote content, including for live streaming. There is the added benefit that interactions, such as chats, can be seen by other Steem-based websites or apps (e.g. Steemit) and can, therefore, gain traction. Live streams will be stored for 24 hours on Wowza Cloud, but streamers can download them as backup and rebroadcast them on DLive — with the chance of being rewarded again if viewers like it. This is made possible by the use of IPFS storage technology. Each DLive user has access to 1Gb in storage and can buy additional storage, using the internal STEEM token (10Mb per 1 STEEM Power).
· Crycash will reward players for time spent in-game and for completing challenges and tasks set by developers. In-game assets can be bought, and bets can be made on tournaments.
2. Startups offering betting services
· Unikrn is a high-tech eSports betting platform. It was launched in 2014 with backing from Mark Cuban, 500 Startups, and Ashton Kutcher. It created its own token, the Unikoin, and, recently, the UnikoinGold, as a currency for betting on eSports events. With new blockchain developments, Unikrn allows users to bet legally from almost anywhere in the world, using its virtual tokens. It also uses the technology to handle account verification, KYC, anti-money-laundering, and problem gambling.
· Esports.com provides an online betting and statistics service, linked to an online eSports shop, where users can shop directly from multiple suppliers (rather than watch advertisements), and a “university” to build the understanding and skills associated with various games. Esports is also a member of the Esports Crypto Consortium — where members will pool their resources and provide interoperability across platforms. This consortium will bring together crypto tokens and coins to encourage competitions and build communities, allow for decentralized sports betting, and provide a decentralized interactive platform for streamers and viewers.
3. Tournament setup
· Eloplay caters for the millions of players who want to battle for prizes and awards, but who are excluded by the focus on professional players. Players and brands can set up “Smart Tournaments” governed by smart contracts, and using Eloplay tokens as the prize pool.
· FirstBlood has a platform on the Ethereum blockchain to decentralize tournament setup and the distribution of winnings. Players can test their skills, solo or in teams, and challenge each other for rewards — but they won’t need traditional money transfers, financial regulations and middlemen. Using blockchain, all FirstBlood’s transactions are publicly verifiable and resistant to counterfeit. It will also encourage the use of cryptocurrencies.
4. Trading of skins and in-game items
· Opskins has introduced the Wax token to overcome the difficulties associated with cross-border trading of skins.
· DMarket links game trades between different gaming universes. The DMarket coin will be used to buy and sell in-game items across thousands of game databases, and to buy BigData analytics. Smart contracts allow for the exchange of digital assets.
· EnjinCoin (launched in 2009) aims to be the gaming world’s #1 one-stop shop for virtual game trades, and claims to be the largest social gaming website platform in the world. Their main advantage is their open-source digital wallet, with multi-language support functionality.
5. Pooling of computer resources
· Network Units uses the decentralization process to pool computing resources and unused bandwidth, thus increasing efficiency and speed of play while significantly reducing the normal costs to gamers and developers. It also has a built-in reputation system to improve fairness and prevent cheating.
6. Referrals
· Refereum is a referral marketplace for games, live streaming and videos. It relies on blockchain technology to track views, likes, sharing and recommendations and to reward activity with its internal RFR token. The purpose of the platform is to cut down on the traditional cost of advertising and marketing new games. Users can also earn points towards RFR tokens by purchasing games or watching Twitch feeds. (It provides a service similar to the partnership program on Twitch, or the Amazon Associates program which rewards those who promote products.)
7. Crowdfunding
· Game Machine targets gamers, game developers and investors. Gamers can receive GMiT tokens for completing tasks and can purchase in-game items. Developers can create their own tokens and launch ICOs on the platform. Investors can use detailed gamer analytics to make informed decisions about investments into gaming tokens.
3. Final comment
Existing streaming platforms and new startups all have good ideas — and P2L has included most of them into its integrated ecosystem. In addition, P2L has designed a revenue-sharing model and provided enough incentives to encourage viewers, streamers, tournament organisers, publishers, bookmakers and advertisers to migrate to this platform.
The competitor analysis shows why Play2Live really is the foremost streaming platform in the world.
Stay tuned!
