The entertainment landscape is gradually shifting towards Web3 capitalization through popular franchises. The beginning of this change was not without difficulties, however.
Legal prospect around ownership sees ongoing litigation between Quentin Tarantino and Miramax, Nike
and StockX, and Hermès/Mason Rothschild.
Issuers and holders of NFTs therefore need to understand the complexities involved in what is allowed and what is not allowed once an NFT changes hands. For example, once purchased, the rights underlying an NFT are generally not given away by the issuer. Instead, specific rights are granted to display and exhibit the work.
Under federal law, the full copyright owner is granted certain proprietary rights. Including the possibility of reproducing and distributing the work, as well as introducing derivative projects. Typically, NFT holders cannot do this and subsequently fully commercialize their NFTs, thus bringing the question of ownership to the fore.
With the industry in its infancy when it comes to its understanding and application of Web3, it is clear that several issues still need to be addressed.
What is clear though, is the massive potential for increased revenue. Marvel, for example, has been selling physical merchandise for decades and is seen as a tangible source of revenue for the company. Web3 has now allowed the company to sell items such as digital characters, key scenes, and even potential original movie scripts, all tracked by the blockchain to ensure originality. Unlike memories of a physical nature, however, Marvel could collect royalties from each subsequent sale of its product, again, because of blockchain.
became the first studio to introduce a full blockchain division in May last year with an investment of at least $100 million.
According to Axios, Scott Greenberg, CEO of Fox’s Blockchain Creative Labs division, “sees NFTs and other digital assets as an opportunity to create more fan engagement not only across all Fox properties, like Fox Sports, Fox Entertainment and Fox News, but third-party franchises as well.”
The opportunities for virtual world creation become limitless with a substantial and potentially complete shift on the horizon from physical products to digital assets. Because tangible space is not needed in the digital sphere, the opportunities for monetization are increasing.
From physical to digital
One of the changes we’ve seen companies make over the past decade has been the development of social media marketing campaigns around their products and services. Hollywood was no different in embracing this change.
Some media companies have gone so far as to invest heavily in intent and data reshaping solutions to improve their customer experience and improve online efficiency and conversion rates.
It is becoming apparent that there is a rush for companies to invest in this new era of data and implement emerging technologies. They will be key drivers for advertising, customer and customer journeys, inventory and product management, new technologies, and overall analysis of where markets are headed as they evolve into Web3.
Hunter Bessell is the founder of Colony, a growing NFT company that is home to the Colonists, a depleted collection of 25,000 customizable avatars playable in the company’s upcoming blockchain game, Colony Online.
Settlers were the most transferred NFT on the Ethereum blockchain the week of its release (likely due to the large collection size of 25,000 NFTs), and the project continues to grow. Collectible characters currently have over 780 ETH traded on the secondary market, which equates to over $2 million at the current ETH price of $3,200. The collection has already seen unique pieces resell for over $8,000 at the time of purchase and has over 5,600 unique holders across the entire project.
The innovative element of the project is that it is arguably strong enough to have taken the route of being an online game without the insertion of NFTs and cryptocurrency. However, Bessell considered the potential future of the market and instead grew that way.
“Using the Ethereum blockchain as the core technology for our in-game economy means that people will earn Proven Rare Digital Assets (NFTs) and eventually sell them to others who want them for in-game utility. or the social status associated with owning them.” He said.
He continued, “These collectibles will always belong to the people who have them in their crypto wallets, which means game servers won’t always need to exist for items to continue to be bought and sold on. blockchain-based digital marketplaces. This is the real power of using NFTs, it is the true ownership of your digital assets. »
“There will be trust fund children in the future whose grandparents have won rare NFTs that will end up selling for millions even after the game is closed…
“It’s the future of collectibles, and we’re already seeing multi-million dollar sales with popular collectibles like Bored Ape Yacht Club and CryptoPunks that don’t even have an in-game use yet.”
Colony Online aims to be a streetwear-focused “spiritual successor” to Disney’s Toontown Online. The game would incorporate mechanics that leverage NFTs and blockchain technology in unique ways. One of those features includes an NFT-based scarcity metric called your drip score. Your Settler’s Drip Score will be a calculation of the rarity of your equipped game items and will give you in-game rewards for winning that change based on your position in the Drip Rank.
The team thinks that features like their drip score will help gamify the repeat of collecting more cosmetic items and lead to some interesting meta in regards to how NFTs are valued in the game economy. game. The game designers also plan to create strong incentives to continue holding their in-game cryptocurrency.
The opportunities for Hollywood in emerging or established fanbases are also perhaps greater than currently imagined, as concepts such as Colonists portray an ecosystem that can be used not only to capitalize on fanbases current ones, but also to merge new fans into a pre-existing economy.