Web3 is uprooting traditional entertainment industries with a new way of creating and engaging with digital content.
The industry has already seen how non-fungible tokens (NFTs) show the potential to transform the way television programming is created. The increased activity of the metaverse began to challenge artists with new possibilities for performance and connectivity with their fans.
All Web3 technology use cases that update the future of digital entertainment include a key component: ownership.. Ownership is one of the features that distinguishes Web3 Activity from its predecessor.
According to industry professionals, it will also be a defining feature not only of Web3, but of the future of digital entertainment.
Cointelegraph spoke with Mitch Liu, CEO of media and entertainment-focused blockchain Theta Labs, about what users can expect in the not-so-distant future of digital entertainment.
Most importantly, ownership puts power back in the hands of users who actually engage with the content, rather than a few powerful platforms.. Liu stresses that, in particular, with “tokenized economies for entertainment companies”, both users and platforms benefit.
“For platforms that adopt Web3, they gain new forms of monetization at a time when the margins of Web2 business models are shrinking.”
This comes at a time when competition within the streaming industry is creating turbulent results for service providers. According to recent reports, platforms such as Paramount + and Disney + experienced an increase in subscribers in the last quarter. Nevertheless, shares fell as much as 9% for the latter, with earnings for both falling short of official estimates.
Liu says streaming wars lead to higher costs for users and more ads. Instead, it suggests that such platforms should embrace new business models that emphasize user experience. This comes through ownership.
“The key is to give users and fans a voice instead of every decision coming from the top down.”
Liu went on to say that “giving control back to users, whether it’s immutable ownership of a movie or the right to vote on how a platform works, will help avoid centralization.”
Metaverse activity is a way to especially improve the user experience through ownership. As investors pour into the metaverse space, entertainment platforms can take advantage of a new frontier with fewer barriers between audiences.
“Decentralized economies and user ownership can be built into metaverses from scratch.”
According to a recent report by DappRadar, blockchain and metaverse gaming projects cumulatively raised $1.3 billion during Q3.
Companies in the sector also see the potential of Web3 for entertainment companies, as blockchain developer Ripple has created a $250 million fund to support Web3 projects focused on entertainment and media. Its second wave of creators launched on October 18 this year.
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