Spotlight on Shocknet

Lightning.Video

Company Summary

ShockNet provides a framework and resources for integrating web apps with the Lightning Network, facilitating rapid transactions. Its platform enables Lightning micropayments to be seamlessly integrated into any application, thereby offering users avenues for content distribution and revenue generation. The startup has also unveiled Lightning.Video, a specialised platform that allows creators to pay for hosting services and monetise their content directly with their audience, challenging the existing advertiser model of platforms like YouTube.

Market Analysis

In the fiercely competitive online video platform arena, YouTube, Vimeo, and Rumble each present unique opportunities and challenges. YouTube remains the undisputed leader with over 2.56 billion global users as of 2022 and advertising revenues surpassing $29 billion. Despite its vast user base, YouTube's Q4 year-over-year growth for monthly active users (MAU) was a meagre 3.2%, and its revenue actually declined between Q4 2021 and Q4 2022.

Vimeo, though smaller, has shown remarkable growth, with revenues climbing 57% to $89.4 million and gross profit up by 67% between Q1 2020 and Q1 2021, though arguably this could be attributed to an organic increase in audiences during lockdowns. Meanwhile, Rumble, a newcomer with a disruptive stance, promises less censorship and instant monetisation. Its explosive growth—142% in MAU and a 686.2% revenue increase in just a year—is nothing short of astounding. The company went public in September 2022.