With plagiarism on a rise, the entertainment industry from what it seems is now on the look for exclusive measures to fight the same. It is believed that non-fungible tokens (NFTs) are expected to solve this issue to a large extent through ticketing.
According to Grand View Research, a market research and consulting company, the global NFT market size was valued at $15.54 billion in 2021, and is expected to grow at a compound annual growth rate (CAGR) of 33.9% between 2022 to 2030. NFTs seem to have caused a disruption in the entertainment sectors that too within digital art, gaming, among others. It carries the potential to transform the way films are made, produced, and distributed.
“As a result, NFTs could potentially allow creators to produce independent films and have creative distribution. Through NFTs, creators can distribute fractions of their ownership to their viewers and raise requisite funds without being restricted by budget constraints and financing methods. NFTs carry the potential to prevent internet protocol (IP)-based thefts in the entertainment sector,” Vikram R Singh, founder and CEO, Antier, a blockchain development and consultancy company, told FE Blockchain.
According to industry estimates, the price of minting NFT tickets varies between marketplaces as it largely depends on blockchain-based costs. For instance, the average minting price of an Ethereum-based NFT is $70. Going by VeeCon’s official website, the average price of one VeeCon ticket NFT was $351.60 of a multi-day superconference event this year, with total sales volume being $12,660.
Data from Binance, a cryptocurrency exchange, highlighted that utilisation of an NFT ticketing system can help reduce resale value and fees with the help of decentralised protocols such as smart contract. “In this kind of ticketing system, event organisers can mint the required number of NFTs on the blockchain platform of their choice. A buyer purchases NFT-based tickets directly from the ticketing company. On receiving payment, a smart contract triggers and a ticketing database sends an NFT ticket to the buyer,” Amanjot Malhotra, country head- India, Bitay, a cryptocurrency exchange, said.
Experts are of the opinion that NFTs can further allow fans to own digital collectibles besides authenticate originally signed posters, tickets of events and movies, antique entertainment merchandise and memorabilia, among others.
Insights from Founders Legal, a corporate and intellectual property law firm, stated that a NFT-based entertainment industry can provide the advantages of duplication prevention, revenue-generation for creators, provide a decentralised storage platform, among others. “Through NFT-based digital collectibles, fans can get exclusive experiences without compromising on the versatility of the digital world. Furthermore, the metaverse also carries the potential for interactive sessions with names associated with the entertainment industry, which is required to be backed by NFTs,” Kameshwaran Elangovan, co-founder and CEO, GuardianLink, a blockchain-based organisation, stated.
Industry analysts have further pointed out that the cost of organising a Web3.0-based event depends on the rarity of the event, along with factors such as the immersive experience and the kind of blockchain used. According to CoinMetro, a cryptocurrency exchange, token gating, which gives holders of a particular token rights to exclusive content, helps in providing data security, multi-level verification systems, low overhead costs, and ease of accessibility. “Gated events are expected to have a better audience compared to non-gated events. Marketing companies can leverage the data collected from gated events,” Malhotra emphasised.
Moreover, it is believed that NFTs’ usage in the entertainment industry can open different avenues for artists, producers, viewers, among others, with viewers expected to get direct participation opportunities towards the industry’s happenings. As per VentureBeat, a technology website, Lionsgate production house has entered into a partnership with NFT platform Autograph to create NFTs for franchises such as Mad Men, John Wick, and The Hunger Games. “NFTs are becoming a part of Web3.0 technology, which is expected to ensure their integration with applications such as Instagram and WhatsApp. It is expected that the rise in platforms, which harness Web3.0 and blockchain-based NFTs, will be a benefactor for entertainment. The fact that NFTs offer ownership and non-fungibility is what makes it lucrative for the users to yield its benefits,” Varun Desai, head, Tezos India Art and Culture (TIAC), a blockchain-oriented platform, mentioned.
Reportedly, around 100 Web3.0 events have taken place in India, with a Goa-based Web3.0 conference held this August. From an international perspective, it is estimated that over a 1,000 Web3.0 events happened till date. In August, rappers Snoop Dogg and Eminem performed their NFT track “From the D 2 the LBC’, at the MTV’s Video Music Awards.
Also Read: CryptoBiz recommences withdrawals and other services
Follow us on Twitter, Facebook, LinkedIn