Unlocking the Future of Streaming Payments with Bitcoin and the LN
566 sats \ 6 comments \ @Rsync25 1 Jul lightning
As digital consumption continues to rise, traditional subscription models are increasingly challenged by more flexible, consumer-friendly alternatives. Imagine a world where you only pay for the exact amount of content you consume. This isn’t a far-off dream but a present reality made possible by Bitcoin and the Lightning Network.
The Current Subscription Model
Consider popular services like Netflix and Spotify. Netflix charges $22.99 monthly for its premium plan, while Spotify's premium service costs $14.99. Subscribers pay these fixed fees regardless of whether they binge-watch series, listen to music around the clock, or hardly use the service at all. This one-size-fits-all approach can be inefficient and unfair for users with varying consumption habits.
The Power of "Pay-As-You-Use"
A "pay-as-you-use" model revolutionizes this by allowing users to pay only for the content they actually consume. This can be seamlessly implemented using Bitcoin and the Lightning Network, transforming the way services are monetized and consumed. Here's how it works:
  • Instantaneous Microtransactions: Using the Lightning Network, real-time payments can be made as content is consumed. This is achieved through Bitcoin’s layer-two solution, which facilitates rapid, low-cost transactions.
  • Granular Billing: Instead of a flat monthly fee, users could be billed per minute of streaming or per song listened. This granular approach ensures users only pay for what they actually use, potentially saving money and increasing satisfaction.
  • Enhanced User Experience: Businesses can easily run multiple Lightning Network nodes by leveraging platforms like Voltage. Voltage provides instant access to instant payments with a plug-and-play design and fully exposed APIs and SDKs. This allows for insanely fast scaling and real-time payment management.
Implementing the Solution with Voltage
Voltage offers a robust infrastructure for businesses looking to adopt a streaming payments model:
  • Scalability: Voltage's platform allows for easy scaling of Bitcoin infrastructure to meet unique business needs. With instant liquidity and improved payment reliability, companies can optimize their accounting and outsource management to Voltage experts.
  • Complete Management: Voltage includes 24/7 customer support, unlimited API calls, and infrastructure SLA, ensuring seamless operation and integration of Bitcoin payments.
  • Enterprise Solutions: For larger businesses, Voltage provides custom solutions, including managed services, BTCPay Server stores, and comprehensive node observability. This includes a professional node designed for production workloads and made to scale to any use case.
Real-World Application
Imagine Netflix adopting this model. Instead of a $22.99 monthly fee, users could pay a set cost for each minute of content they watch. This would cater to casual viewers who only watch occasionally and heavy users who consume large amounts of content, providing a fairer, usage-based pricing model. Similarly, Spotify could charge per song or minute of listening, ensuring users only pay for their music consumption.
Wrapping up
The "pay-as-you-use" model powered by Bitcoin and the Lightning Network represents the future of digital content consumption. By integrating this with Voltage's robust infrastructure, businesses can offer flexible, real-time payment solutions that enhance user satisfaction and streamline revenue collection. It's time to rethink traditional subscription models and embrace the innovation of streaming payments. For more information on how to integrate these solutions into your business, visit Voltage's official website and explore their enterprise solutions tailored to meet your needs.
Original article: https://x.com/voltage_cloud/status/1807759947809137134
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21 sats \ 0 replies \ @Undisciplined 1 Jul
I don't know if pay-as-you-use works as a business model for something like Netflix. What they basically want to do is maintain a captive audience that will pay the fixed rate and keep their eyeballs on Netflix content. You're paying to get into their walled garden.
With pay-as-you-use, market pressure will drive prices down to the marginal cost of production (which is approximately 0 for digital content), because now the different streaming services are competing over every individual moment of your attention.
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17 sats \ 3 replies \ @DarthCoin 1 Jul
It should be mentioned here the model that @justin_shocknet is doing with https://lightning.video
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161 sats \ 2 replies \ @justin_shocknet 1 Jul
Thanks for the mention
The team at voltage is great but this post misses the mark at least as far as my direction on it.... Lightning is NOT for streaming payments.
Lightning is actually very bad at streaming payments, there's only so many HTLC's you can have on one side of a channel, each payment has a real world cost, and paying pennies per minute is not a real world problem that needs solving.
Paying $20/mo for a streaming service, yes that's retarded legacy fiat contstruct because of credit card processing overhead, but the opposite extreme of paying per minute of consumption is equally retarded.
Through operation of Lightning.Video I've talked with a lot of creators, many involved in the strike last year in Hollywood... and it's disintermediation that needs solved. Cost reduction is an added benefit. Payment privacy is too, particularly in the smut category.
Think about it, if you're a studio selling content on Amazon etc, you're completely reliant on them for distribution, they take exorbitant fees, and you're completely trusting them to tell you what you're cut is and give it to you.
One particular studio told me their payments just stopped out of the blue despite continuing evidence people were consuming their content and this was the primary reason they were involved in the strike, having no recourse.
So Lightning isn't about streaming payments, it's about every creator that wants one to have their own streaming service.... and trusting no one to mediate the relationship with consumers, and cutting costs by 75% while increasing margin. THAT is what we're pushing towards with LV (and better Lightning infrastructure to enable it)
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36 sats \ 0 replies \ @Rsync25 OP 1 Jul
Great point
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17 sats \ 0 replies \ @DarthCoin 1 Jul
So Lightning isn't about streaming payments, it's about every creator that wants one to have their own streaming service.... and trusting no one to mediate the relationship with consumers
This! I knew you will come up with a very good point.
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0 sats \ 0 replies \ @BallLightning 2 Jul
I don't think lightning or bitcoin has anything to do with the subscription model. Furthermore i think there is actually no API for streaming sats (like sanding 1 sat per second).
The subscription model is desirable for the companies because it gives the companies more predictable revenue. Furthermore almost all of the costs are fixed to them.
Once upon a time there was what was called pay-per-view payment model, where you pay for a movie and then it is available for like 24 hours after payment. This is technically possible both with lightning and credit/debit card payment. It is not usually implemented, because companies prefer the subscription model.
There is even a tendency to turn things that are not naturally suited for this model in subscription. For example you Americans subscribe for a gym membership, when this is totally unnatural requirement. Where I live you just go, pay for the visit and workout. Without signing anything. (I hope we don't catch up with the American model here.)
What you want is some other change. Forcing users to subscribe can be done even if bitcoin is the only currency used.
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