Web3 eradicates traditional entertainment industries by offering a new way to create and interact with digital content.
The industry has already seen that non-fungible tokens (NFTs) show the potential to transform how scheduled television programming can be created. The increased activity in the metaverse has provided new opportunities for artists to perform and connect with their fans.
All Web3 technology use cases that enhance the future of digital entertainment include one key ingredient: ownership. Ownership is one of the defining characteristics that distinguishes the Web3 activity from its predecessor.
According to industry professionals, this will also be a defining characteristic of not only Web3, but 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.
First of all, ownership redirects energy back to the users who are actually interacting with the content, rather than to multiple powerful platforms. Liu emphasizes that it is with a “tokenized economy for the entertainment business” that both users and platforms benefit:
“Platforms that use Web3 are getting new ways to monetize at a time when the margins of Web2 business models are shrinking.”
It comes at a time when competition in the streaming industry is producing explosive results for service providers. Platforms like Paramount+ and Disney+ saw subscriber growth in the last quarter, according to recent reports. However, the shares of the latter fell by 9%, and the profit of both fell short of official estimates.
Connected: Social tokens will be the engine of Web3, from fan bases to incentives.
Liu says the streaming wars result in higher costs for users and more ads. Instead, he suggests that such platforms adopt new business models that emphasize user experience. This happens through ownership:
“The key is to give users and fans a say, not to make every decision from top to bottom.”
Liu continued by saying that “Giving users more control, whether it’s immutable ownership of a movie or the right to vote on how the platform works, will help avoid centralization.”
Metaverse activity is one way to 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:
“A decentralized economy and user ownership could be built into the metaverse from the ground up.”
According to a recent report from DappRadar, metaverse and blockchain gaming projects combined raised $1.3 billion in the third quarter.
Companies in the field are also seeing the potential of Web3 for entertainment businesses, as blockchain developer Ripple has set up a $250 million fund to support entertainment and media-focused Web3 projects. Its second wave of creators started on October 18 this year.