Web3 is uprooting the traditional entertainment industries with a new way of creating and sharing digital content.
The industry has already seen that non-fungible tokens (NFTs) offer the potential to transform how scheduled TV shows are created. The growing metaverse activity is beginning to challenge artists with new possibilities for performances and communication with their fans.
All of the Web3 technology use cases that upgrade the future of digital entertainment include one key component: ownership. Ownership is one of the distinguishing features that distinguishes the Web3 business 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 entertainment-focused media and blockchain Theta Labs, about what users can expect in the not-too-distant future of digital entertainment.
Above all, ownership redirects the power to the users who actually interact with the content rather than to a few powerful platforms. Liu highlights that it is precisely with the Entertainment Business Token Economics that both users and platforms benefit:
“For platforms that are embracing Web3, it’s gaining new avenues for monetization at a time when margins for Web2 business models are shrinking.”
This comes at a time when competition within the broadcasting industry is producing turbulent results for service providers. According to recent reports, platforms such as Paramount + and Disney + have seen an increase in subscribers in the most recent quarter. However, shares are down 9% relative to the latter, and earnings for both have fallen short of official estimates.
Related: Social icons will be the engine of Web3, from fan bases to motivation
Liu says the streaming wars lead to higher costs for users and more advertising. Instead, he suggests that such platforms need to adopt new business models that highlight user experience. This comes through the property:
“The key is giving users and fans a say rather than having every decision come from the top down.”
Liu continued by saying that “giving users more control, whether it’s fixed ownership of a movie or the right to vote on how the platform operates, will help avoid centralization.”
Metaverse activity is one way to improve user experience specifically through ownership. As investors flock to the metaverse, entertainment platforms can tap into new frontiers with lower barriers between audiences:
“Decentralized economies and user ownership in Metaverse can be built from the ground up.”
According to a recent DappRadar report, metaverse and blockchain gaming projects cumulatively raised $1.3 billion during the third quarter.
Companies in the space also see potential for Web3 for entertainment projects, with blockchain developer Ripple creating a $250 million fund to support Web3 entertainment and media-centric projects. The second wave of creators was launched on October 18 this year.