NFTs represent a great opportunity to digitally immortalize the art of soccer in this World Cup and can generate countless monetization and engagement possibilities for brands and artists.. Additionally, companies that have already signed on to this initiative will be better positioned to harness the impact of this global event, which is expected to reach an audience of 5 billion people around the world. This is KPMG’s assessment, based on market data and the publication “NFTs as the new business opportunity in the Media and Sports sectors”.
According to the consultancy, implementing successful NFT strategies can generate the following opportunities for companies: new sources of monetization for existing intellectual property; access to a massive growth market for new content; new brand and intellectual property stories; new ways to interact with users and attract customers by creating communities; increased incentives for fan participation and interaction; better brand awareness and increased customer engagement.
“NFTs are unique in that the underlying digital assets can be owned, controlled by creators, and transferred between consumers. In this sense, NFTs are becoming the engine for the development of communities that grow organically around content, associated experiences and the progressive integration of physical and virtual environments. The key to thriving to generate business and mature the market will be for brands to harness the energy of these communities, creating opportunities for fans and consumers to participate. Business success in the NFT ecosystem will respond to a differentiated mix of content, communities and utilities”, says Márcio Kanamaru, leading partner of KPMG’s Technology, Media, Sports and Telecommunications sector in Brazil and South America.
The publication further noted that according to DappRadar, NFT trading volume exceeded US$23 billion in 2021, compared to sales of just US$95 million in 2020, representing a 24,000% jump. In this same line of exponential growth, only in the first half of 2022, even in the current complex economic context, sales have already exceeded USD 20 billion. Regarding the number of users, in 2020 only half a million digital wallets operated with NFTs, compared to 28 million in 2021.
Another relevant fact is that, according to Kantar Ibope Media, 68% of connected Brazilians are soccer fans and among them, 44% are women. To follow matches and consume content, the channels most used by fans are: live broadcast (73%); portals with soccer content (48%); Internet transmissions (38%); review programs (24%); repetition of games (19%); top hat (12%). The digital audience of the World Cup is very relevant in Brazil, since soccer has been a national passion for decades, watched by men and women of all ages.
“Media, sports and gaming companies are uniquely positioned to seize the opportunities of this undeniably disruptive technology. They need to design and implement a clear NFT business strategy geared towards driving user engagement with a technology foundation that supports the business. This strategy must adopt a portfolio management approach of the company’s assets and intellectual property, without neglecting brand values, taxation, legal compliance and risk management.”, says Francisco Clemente, Head of Media and Sports at KPMG in Brazil.
Continuing with the theme, the International Football Federation itself launched FIFA+ Collect, a platform and collection of NFTs built on the Algorand network, the official blockchain of the 2022 World Cup, providing the opportunity to own, collect and eventually buy and sell iconic moments from World Cup history in the form of digital assets. The world’s digital sports collectible assets are estimated to reach $2.2 billion by 2022.
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