Every once in a while, an impactful technological innovation emerges and disrupts sectors across the board and forces industries to change how they operate. Web3 is forcing studios, content creators, communities, and audiences to adapt to the changing tide by restructuring and reorganizing or risk being left behind.
During a recent Livestream, Gigster’s Director of Blockchain, Cory Hymel, engaged Polygon Industries’ Head of Global Entertainment, Kelly DiGregorio. She shared deep insights on the changes the entertainment industry could undergo and suggested creative strategies industry players can employ to position themselves to adapt to inevitable changes.
We stand at the precipice of a looming technological innovation sweeping across the entertainment industry as a wave of large-scale reorganization looms on the horizon. Web3 technology is gradually changing how film, art, and music are developed, marketed, and distributed. A market Research Future (MRFR) study projected that the blockchain-based media and entertainment market would reach $11.8 Billion by 2030, registering a 30.40% CAGR by 2030.
There’s a new order of doing business as content creators comfortably circumvent the traditional gatekeepers and can sell their IPs directly to their fans via NFTs. The lengthy processes that slowed down or prevented artists from selling their merchandise directly to their audience are gone, and content creators are building communities of fans and supporters.
The entertainment industry must rethink its strategies on how distribution deals are structured. Creators no longer need big studios to succeed, as most elect to appeal to their communities directly. Web3 has introduced a new yardstick for interactivity and scrutiny. With social media platforms like Discord that are placing fans at the center of the conversation with artists, Kelly offers industry players the following suggestions:
The entertainment landscape progressively gravitates towards exploiting Web3 via popular platforms, albeit with the usual teething problems. The sector is still in its infancy regarding understanding and application, and some things must still be ironed out. However, it’s becoming apparent that Web3 offers mass potential for increased revenue. Participants must start experimenting with new models like NFTs to understand the complexities involved as well as what works, what is and what isn’t allowed.
The Web3 era introduces new incentive structures that include not only content creators but their fans as well. The transparency afforded by the distributed ledger technology means that creators are no longer spectators but part of the entire process from conception to distribution. Fans become stakeholders and long-term investors by buying NFTs, and they can see when the entertainer gains popularity. NFTs will open a way for entertainers to reward early adopters who placed bets on their future potential.
Web2 introduced music streaming services that transformed how fans listened to music, but the centralized business models seemed to reward entertainers more than the creators. However, Web3 eliminates such drawbacks with its decentralized platform models that hands power back to creators. The peer-to-peer nature of the blockchain means artists and their fans are linked directly. Also, through smart contracts, creators will know precisely how much the entertainer has made through their music or film, and controversies about income levels will be a thing of the past.
The changing ownership and incentive structures favor creators and audiences. Creators will likely capitalize on the willingness of audiences to pay to try and kick out intermediaries like studios and broadcasters out of the picture. Entertainers must embrace Web3 and create an equitable and empowering environment if they’re going to be the ones to thrive in the years ahead. Entertainment platforms could borrow a leaf from the gaming industry’s play-to-earn model and consider creating watch-to-earn models that ensure creators benefit directly from their fans and that the fans potentially receive a portion of royalties earned from their favorite songs or recordings.
Web3 is set to change the entertainment industry irretrievably. Content creators are rewriting the rules that embrace new distribution models with their best interests at heart. To survive and thrive, Kelly reiterates that entertainers must adapt to this new reality, as those that hesitate could be left behind. Listen to the interview to learn how Web3 is restructuring the entertainment industry.