While the non-fungible token trading market has been freed up, Hollywood and music companies continue to trade based on the technology.
We are in the midst of a tremendous “crypto winter”. Web3 A great cold fills the air. Non-fungible token (NFT) sales have declined Shocking 97% since the beginning of the year. The much-awaited promise of NFTs transforming media and entertainment artist/fan and producer/viewer relationships has been broken. Shattered. DOA. Correct? Wrong.
NFTs (units of data stored on a digital ledger, called a blockchain, which certifies a digital asset to be unique and therefore not exchangeable) present a transformative mass market opportunity for Hollywood, the music industry and all artists and creators. Continues to do – bet. We’re still only in the opening innings – just stepping up to the plate, really. It will take time, but it is happening.
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Let’s take Hollywood first
Fox Television – the only major studio without a direct-to-consumer paid subscription streaming service like Netflix – $100 million earmarked months ago to develop NFT-fueled programming. Its first major project is the new animated series “Krapopolis” from the creative mind of “Community” co-creator Dan Harmon. NFT buyers will get exclusive token-gated access and private screenings, not to mention get-togethers with the cast (and will likely be included in later episodes as well).
Other new experiments by Hollywood in the world of NFTs include Warner Bros. Consumer Products’ Story in partnership with trading card company Cartamundi, Together, they developed a limited-edition collection of NFT trading cards (called “Hrow”) based on well-known DC Comics characters, which unlock new experiences and form a part of active promotion for Warner Bros. Gives a new look. These hybrid cards match a physical and digital component and can be sold in secondary markets, providing an attractive new revenue stream.
How about the music industry?
Major labels such as Warner Music Group have invested deeply in companies and projects in the NFT space. Just last week, WMG announced A major partnership with NFT platform OpenSea To provide certain artists with the ability to bring their fan communities to Web3 (with exclusive benefits). And while the music industry is grappling with massive private equity-funded music publishing and Master Recording acquisition deals — such as last week’s more than $300 million acquisition by Concord Music Group of Phil Collins and Genesis’ Music Catalog — superfans are now in it. Sports can also be involved. through NFT.
For example, electronic dance music’s The Chainsmokers recently sold a partial interest in their latest album “So Far So Good” to superfans via NFT on the Royal platform. These NFTs not only prioritize tickets, merchandise and events on an ongoing basis, they also give 5,000 NFT owners an ongoing share in music royalties. Yes, these can be considered securities — so tread with caution — but Royal should have an answer because its offering was blessed by a major blue-chip law firm.
In the world of concerts and live events, companies such as the high pedigree OP3n are developing NFT ticketing as part of their overall SuperApp platform, which can eliminate ticket scalping and provide additional sustainable benefits to the buyer. Even Ticketmaster is making noises about coming into the game to defend his turf. And OOD, an innovative new blockchain-enabled marketplace for the physical collectibles marketplace, uses NFTs to authenticate rare real-world musical memorabilia like your favorite artist’s guitars and give the buyer a unique experience (which is real-world and digital). can be both).
So why all the doom and gloom amid these clear signs of a massive market opportunity?
Well, NFT skeptics only focus on leaving the floor for purely speculative greed-fueled token sales and infamous “pump and dump” schemes that took the biggie and took unsophisticated money and fled. But this is not where the real market opportunity lies. Unlike that infamous JPEG-fuelled crash, all of the entertainment offerings mentioned above promote and promote real-world community and enduring value. It’s not just a two-dimensional digital picture. It is a package of gifts available only to a specific community that pays to fund their favorite artist, producer or content. Uniquely active communities and sustainable meaningful values are key components here.
What those goodies might be is entirely up to the NFT creator – essentially a new Web3 canvas on which to paint. It is up to the NFT creator (Minter) to build a community based on something that will last. And if they do, these NFTs will be the gifts they keep giving, as creators now have the opportunity to share in the revenue generated by the resale of these limited exclusive “memberships”. These new sources of funding and economics promise to foster more creativity and art than ever before, as the dollars now flow directly to the creator/artist – not to middle-man platforms like YouTube or TikTok who use their pounds. Take out the meat.
And let’s not forget that NFTs also give superfans emotional value and bragging rights (“flex” in Web3 parlance). Now they can say that they are not just passive consumers of art and the artists who speak to them. Now they can say that they are active participants who promote and build the artist’s ecosystem (and sometimes even take part in the economics).
So don’t make any mistake. NFTs are real, enduring and provide a transformative new media and entertainment opportunity for both creators and audiences. For all the skeptics, look to the big consumer brands like Starbucks. Yes, that Starbucks. Your neighborhood barista is no longer making your favorite seasonal pumpkin-spiced latte. Soon you will be able to enjoy its limited edition exclusive NFT loyalty program called “Odyssey”, which was recently unveiled by the coffee giant during the height of “crypto winter”. If Starbucks is in the NFT game, that game is real (and highly caffeinated).
Full Disclosure: The author serves as an advisor to OOD and OP3N.
