NFTs in the Entertainment Niche & Its Role in the Web3 Ecosystem

 

For many, a place in the general entertainment industry is a dream that they've been working towards for ages and once they get there, things seem all well and good. That is until they experience a certain nature within a centralized system, where major entities, such as big companies, studios or niche labels, hold substantial power and control. So, how do you solve this issue that persists in the industry?

 

You can focus on and try decentralization. It actually gives people that very power through blockchain tools and solutions like Non-Fungible Tokens (NFTs), and ultimately, a move to Web3. What would this look like? The information below will cover exactly that, as well as how beneficial it would be and any concerns that exist.

 

Contents:

- Decentralized industry: shifting away from traditional models

- The future of ownership

- Empowering users through blockchain innovation

- Industry challenges and beyond

- Norms and possible strategies

- Metaverse

- Any concerns?

- Final thoughts

Decentralized industry: shifting away from traditional models

To understand why many think innovations such as NFTs, as well as a move towards the third iteration of the internet are necessary, look no further than the recent SAG-AFTRA strikes. That particular case saw a host of issues brought to light.

 

Sticking with Hollywood as our main example, breaking in to create content is notoriously difficult especially, today and for someone new in the businesses or unproven, regardless of how great your idea could be. So, how exactly would this shift to a decentralized model help them?

 

The future of ownership

Let's start with knowing exactly what these two technologies are, starting with NFTs, which are blockchain-located, non-replicable identifiers that prove ownership and authenticity. By their very nature, these tokens’ value isn't able to be duplicated. Those familiar with NFTs have probably seen them in the form of bored apes or similar images, but they go far beyond digital art and maybe the following:

- Videos

- Audio

- Text

- Sports collectibles

- Games

- Film

Empowering users through blockchain innovation

Web3 is the aforementioned third iteration of the internet that shifts away from the static Web1 and the interactive, yet restrictive Web2. It instead intends to use blockchain technologies to take power away from the major players such as search engines and governing bodies who make the rules, handing it to users. Some of the innovations used include:

- Decentralised Finance (DeFi)

- Decentralized Autonomous Organizations (DAOs)

- Cryptocurrency and NFTs

Industry challenges and beyond

Absolutely, NFTs extend far beyond just art and paintings. While they gained initial popularity in the art world, particularly with digital art, their utility spans across various industries and sectors. How is any of this useful when it comes to integration into the entertainment industry, using Hollywood as an example?

 

Well, the very centralized entities online exist in the film industry, usually coming in the form of different types of distribution that aren't always clear with marketing expenses, for instance, and financiers that don't see your vision.

Norms and possible strategies

The following are ways in which these issues as well as others can be curbed with NFTs and general decentralization. Let’ see some examples:

- NFTs can be used for crowdfunding, by giving those purchasing tokens perks such as behind-the-scenes content and director's cuts

- In regards to those working on the film, like writers or VFX artists who were affected by the aforementioned strikes, they could see compensations in the form of NFTs, which deliver royalties every time their content is seen

- In general, NFTs give creators greater access to users and fans

- Distribution in Web3 can be handled by oneself since the blockchain technology allows for direct access to users, as well as full ownership of content, which also gives transparent views of market coverage

- A great benefit of this is that marketing budgets are also low

- Film ratings are another issue that can be seen as restricting creativity and important storytelling, something Web3 can solve through smart contract-controlled DAOs, which allow for contributors and not centralized entities to create ratings systems

 

All the above are not only limited to film but other spaces as well. The music industry also has similar issues, so the above technology can help.

Metaverse

Additionally, it is crucial for you to keep in mind that Non-fungible tokens (NFTs) and Metaverse are closely connected through their shared foundation in digital ownership and virtual experiences. The term Metaverse itself refers to a shared virtual platform in which users can interact with one another and share or shop for digital items in real time. Here's how they are interconnected:

- Digital Assets

- Ownership and Identity

- Economy and Commerce

- Virtual Real Estate

- Cross-Platform Interoperability

- Decentralization and Governance

Any concerns?

The above all sounds good, but the truth is that many doubt Web3, actually a lot of this is valid due to some basic facts. Among the things people are concerned about are the following:

- Its being a still new and developing space, without definition regarding legal aspects and regulatory compliance

- A lack of adoption due to the very apparent novelty of Web3 and its complex nature itself

- The potential for security issues due to Web3 attacks possibly affecting the entire network

 

While the above are good areas to doubt, note that there's still enough faith in Web3 despite having gone through a period where investment in it continually dropped. Said faith is enough to see enough interest to improve the above issues, and thus, explore uses, such as in the entertainment industry.

 

Final thoughts

The above shows that the entertainment industry is a difficult one, actually due to different facts described above, it faces significant challenges, particularly concerning issues like ownership and funding. With Web3 and the blockchain technology, we have such solutions as NFTs. So the power could be actually shifted back into the hands of users and creators, who can have control over various aspects of their content.

 

Despite the challenges, there is a strong interest and determination among individuals to find solutions within the entertainment industry. The rapid advancement of technology offers promising opportunities for innovation and improvement. It is also important to be aware and up-to-date with new tools and solutions available in the market today!

You can get your Real-Time and Historical DEX Data with a free DEX Data API key.

Build with us today!

Start Free Trial