This piece of news kind of explains how this came into being:
But. the important stuff (verbatim copy of the page):
LBRY allows anyone to publish content to a location like this:
Others can access this resource, either for free or for credits. Let’s look at an example:
Ernest wants to release his comedy-horror film, “Ernie Goes To Guantanamo Bay”.
The content is encrypted and sliced into many pieces. These pieces are stored by hosts.
Ernest reserves lbry://erniebythebay, a shortname pointing to his content.
When Ernest reserves the location, he also submits metadata, such as a description and thumbnail. This information is stored by miners in the LBRY blockchain.
Hilary, a patron, browses the LBRY network and wants to watch the movie. Her LBRY client collects the pieces from the hosts and reassembles them.
Hilary pays Ernest for the decryption key, allowing her to watch the film.
Edit: fixed a typo