Web3 Entertainment: The Dawn of a New Era
We are heading to a future where the world will be far more reliant on technology than it is now. Everything in the days to come will be connected to technology in novel ways. But how tech giants will achieve this is still a faint picture to many. Well, the answer is simple! The internet will help them do it.
Today, our information superhighway (internet) has become the most valuable asset for almost everybody. And the unprecedented surge in demand for the Internet has created a new technological wave, immersing everything and everyone in it. However, the internet has evolved over time. And the changes that it has undergone since its inception have been remarkable for many reasons, especially for how they have transformed human life.
We will remember the past decade for two major events: Facebook’s rebranding to Meta and a paradigm shift from web2 to web3. Although both breakthroughs have been transformative, in this insight, we will focus on the evolution of the web from version 2 to 3 and the impact of web3 entertainment in the tech sphere.
It is worth noting that the implications of web3 are profound. And web3, as we know, seems to be on a mission to revolutionize every sector, including healthcare, gaming, and e-commerce. We will examine web3’s implications for the entertainment domain in this article.
- What is web3?
- Critical challenges with the traditional entertainment industry that can’t be overlooked
- Overview of web3 entertainment
- Impact of web3 on the film industry
- Impact of web3 on the music industry
- How OTT platforms benefit from web3 technology
- What impact does web3 have on museums and exhibitions?
- How web3 impacts the media industry
- Web3 and social media
- Web3 entertainment and the growing popularity of virtual concerts
- How will web3 entertainment reshape the relationship between creators and their fans?
- NFTs unleashing new opportunities for web3 entertainment
- Impact of web3 entertainment on content creation
What is web3?
The concept of web3 came into the spotlight after the co-founder of Ethereum, Gavin Wood, coined the term and first used it in 2014. There were limitations to the potential of the Internet in its early versions as they increased dependency. He believed that web3 technology was a powerful catalyst for development in the tech sphere and would spur the growth of the global tech ecosystem.
Essentially, web3 aims to decentralize the internet. By introducing this technology, the power of control is moving from the hands of intermediaries to users. Blockchains, cryptocurrencies and NFTs form the basis of web3 technology, offering users unprecedented security, transparency, and immutability.
The distinctive features of web3 services demonstrate its potential to transform different industries. This is why big industries are dabbling in this new wave. Considering the variety of use cases that can be achieved with this technology, web3 may be considered revolutionary.
Critical challenges with the traditional entertainment industry that can’t be overlooked
We may find the entertainment industry lavish and in good shape from an audience perspective. However, this might not be the reality. The global entertainment industry is subjected to several hurdles that make it difficult to prosper and progress rapidly.
Content piracy and intellectual property rights infringement
Artists, musicians, content creators, and moviemakers are at a great disadvantage because of the infringement of their intellectual property rights. There are people who violate the original creator’s rights and have complete authority over their work.
They distribute or make the content available through unfair means without paying for its ownership rights. Traditional methods, further, make it difficult for creators to monitor and track their content. Thus, promoting and increasing piracy of content.
Loss of revenue shares due to the involvement of intermediaries
Most film producers or music composers are forced to use intermediaries’ help to reach out to a wider audience. This creates another major problem for creators- the third party takes away the biggest chunk of the profits earned. Creators, thus, receive lesser profit than what they actually deserve.
Also, they need to pay a premium amount to get their IP rights protection issued, thereby increasing the overall cost. On top of that, there isn’t full prevention from hacking or online piracy, even after paying a handsome amount for the protection.
Uneasy transaction process
The entertainment industry further deals with huge losses due to the presence of mediators in the transaction process. This makes transactions pretty complex and unsafe. Consumers find it difficult to transact, which discourages new entrants in the domain. This is a major failure for the industry, creating hurdles in reaching out to a large audience and affecting growth.
Vague royalty agreements
The main source of revenue for creators is royalty agreements with emerging platforms. Sadly, most agreements fail to guarantee fair compensation and cut down the royalties shared with creators. This is due to the lack of transparency in royalty agreements and inaccurate metrics for monitoring content consumption.
Web3 holds immense potential to address the challenges plaguing the entertainment industry. It revolutionizes how content is distributed and consumed.
Let us see how web3 services help the entertainment industry.
Overview of web3 entertainment
Every once in a while, an innovation emerges that causes an entire industry to shift and change its working. These innovations are the result of technological advancements. Web3 entertainment is one such technological innovation that has caused the restructuring of the entire entertainment industry. It is ushering in an era that opens up a whole new world of immersive entertainment experiences. Blockchain-backed web3 gives fans an unmatched near-real experience in the metaverse’s virtual world. It lets fans engage in real-time interactions with their favorite content creators and allows creators to connect with their well-wishers directly.
Many already predict that web3 entertainment will forever change how we perceived the entertainment world earlier, and there will be a steep rise in the number of its users. Hence, it is no surprise why big companies in the entertainment industry are looking to position themselves in the web3 ecosystem. As major businesses show interest in web3, the future entertainment industry seems to be far more promising while remaining easily accessible. For all the fans of Bollywood, Hollywood and regional cinema, it is good news that the entertainment industry will soon become more attractive, powered by impressive web3 development services.
Impact of web3 on the film industry
Anybody taking an interest in web3 can easily notice that diverse use cases of web3 entertainment are slowly emerging. In fact, this new wave of the web3 revolution has also significantly influenced cinema. The film industry has a considerably large fan base and has been entertaining and educating people for a long time. Sadly, the industry experiences numerous setbacks. Thankfully, web3 technology is helping the industry explore newer business models to offer audiences a better overall viewing experience.
Web3 development companies pave the way for new innovations and solutions in filmmaking and movies. Below are some potential uses of web3 in the film industry.
Earlier, producers and directors faced problems with the royalties they were entitled to. Web3 has proven to be an ideal solution for streamlining royalty payments. But how? By deploying smart contracts that trigger automatic payments based on the usage of the creator’s content. Creators are, thus, properly rewarded for their efforts more fairly and efficiently.
Reduces piracy issues
Combating piracy is not easy. Fraudulent copies of films and duplication of other digital items cause filmmakers huge losses. As a result, filmmakers and artists around the globe are looking for a permanent solution to this problem. Incorporating web3 into the film industry will result in fewer incidences of copyright infringements of movie-related content. And this can be accomplished with decentralized processes.
Besides, with web3 integration, content surveillance and tracking of fraudulent activities become a breeze. And as we gain a deeper understanding of web3 entertainment, web3 could start to emerge as a commonplace tool for combating digital piracy and duplication.
Resolves advertising and marketing issues
Advertising fraud is one of the gravest challenges facing the entertainment industry. It adversely affects both advertisers and viewers. Web3 allows easy tracking of ads’ performance and smooth monitoring of publishing rights, saving the entire web3 fraternity.
In fact, web3 can be used as a universal source of truth in the entertainment industry, and it guarantees advertising metrics are free from manipulation and fraud.
Platforms like Netflix and Amazon prime video are based on subscription-based streaming services. Although this practice seems to have no issues, it has got certain limitations.
As a viewer, there might be a case that you do not like the content on your subscribed channel and want to unsubscribe. But subscription cancellations can waste users’ time as well as money. For OTT platforms, canceled subscriptions mean a huge loss and reduced user engagement.
With web3, micropayments and consumption-based pricing mechanisms are beginning to gain popularity. Just like metered billing, this mechanism allows consumers to pay only for the content they want to consume.
Intermediaries are another challenge in the industry. Web3 entertainment is somehow eliminating costly intermediaries and allowing creators and viewers to interact directly. Thanks to smart contracts for validating data and generating transparent mechanisms for content viewership and royalty payments.
Web3 enables the film industry to facilitate disintermediation, digital rights management and a transparent ecosystem. The future of the industry relies on web3, which will undoubtedly empower a new competitive era in cinema.
Impact of web3 on the music industry
For most people, music is an important part of life. Talking about the music market, there have been significant changes in age-old practices. New platforms for artists have emerged where they can share their music; fans, too, have newer ways to connect and engage with their favorite artists. Without a doubt, the music industry is rapidly growing. Web3 acts as a catalyst in this growth. Web3 in music is helping reshape the industry. The technology addresses a wide range of industry problems related to music releases, distribution models, and revenue sharing. Web3 in music enables artists and their fans to form a new music ecosystem by ensuring transparency, respect for rights and fair exchange of value.
The web3 model has several advantages in the music industry, which are as follows:
Digital rights management
Utilizing web3 in the music industry help musicians enjoy full control over their creations. It completely eliminates the need for third parties and employs smart contracts to manage rights and maximize the value of publishing, recording, and performance.
Web3 in music ensures that the distribution of revenue is fair based on the contribution made by each individual to the creative process.
Web3 involves transparent ledgers that are visible to all. These distributed ledgers include diverse information, such as the total revenue generated by a song and metadata for the copyrighted material.
New revenue models
Earlier, musicians used to be unfairly paid. Thankfully, the integration of web3 in the industry promises fair music streaming revenues. Web3 now allows musicians to earn digital tokens for streaming their music on various platforms.
Allowing fans to own the songs of their favorite musicians
Web3 brings an opportunity for fans to share ownership over the songs of their favorite artists through NFTs. This helps musicians retain control over their work and establishes a deeper connection between musicians and fans.
Web3 adoption will, thus, result in structural changes in the music industry soon. It will shift the power from existing intermediaries to artists and their associates. This will help musicians regain ownership and solve issues such as lost revenues and delayed payments. Hence, web3 in music is going to disrupt the industry in novel ways.
How OTT platforms benefit from web3 technology
OTT platforms are expected to benefit the most from web3. These platforms aim to use web3 technology to tackle certain issues that hinder their growth. Let us now look at how web3 can help make OTT platforms more stable and convenient to use than ever before.
Accessibility and ownership
The major challenge with the OTT industry is the inaccessibility to content. The video subscription model upon which these platforms function prohibits consumers from accessing content except through their own platforms. The integration of web3 in the OTT industry solves the issue of content ownership and accessibility. This is accomplished by allowing the content to be accessed from anywhere.
Web3 makes it easy for publishers, creators, and copyright owners to track content-related information. The data is stored on a blockchain that is visible to everyone. This benefits creators and publishers to get rewarded every time their content is used.
Prevention from content theft
Web3 can be used to prevent content theft and unauthorized use of creative works. All information is stored in a transparent distributed ledger that eliminates the need for third parties to control transactions and other activities. The decentralized and distributed network helps maintain content authenticity and scarcity by making content theft or tampering with data impossible.
Web3 is introducing concepts like micropayments and consumption-based pricing mechanisms to the OTT world. This allows consumers to pay only for the video content they want to consume. As the industry continues to grow, web3 incorporation will make the industry more secure and convenient to use.
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What impact does web3 have on museums and exhibitions?
Museums and exhibitions are an integral part of the entertainment industry. Like other entertainment domains, web3 has also brought revolutionary changes to museums and exhibitions. Big leaders from the sector suggest that web3 would resolve some long-standing problems in this industry, including transparency, security and ownership. But even more than solving problems, the use of web3’s power in museums and exhibitions has made these forms of entertainment more meaningful for everyone involved. Here is how web3 has revolutionized the way museums and exhibitions work:
- Web3 allows museums and exhibitions to issue NFT-based tickets. Since there is value in the tokenized tickets, there is an opportunity for their owners to earn profit.
- NFT-based exhibits are the new trend. Tokenized exhibits like art are more valuable as they promise true ownership.
- NFT-based digital assets, such as the exhibits in a museum or exhibition, enable artists to enjoy great profit margins as no intermediary is involved.
- Tokenized exhibits create a sense of scarcity and traceability. As all the information related to the asset is stored in a blockchain, no duplication or fraud occurs. Further, these digital arts can be re-sold for any desired value.
How web3 impacts the media industry
Web3 has brought about significant changes in the structure of the media industry. Web3 bypasses content aggregators, platform providers, and royalty collection associations and brings power right to the users. With powers transferred to the users, management of work distribution, production and consumption has become a breeze.
In the media industry, web3’s payment-focused use case has already been proven to work successfully. Decentralized payments in the industry are allowing to reset pricing, advertising, revenue sharing, and royalty payment processes. Transactions have become easy, and the distribution of revenues is automated. On top of that, payments or advertising revenues are no longer centrally collected, increasing transparency.
We will examine some use cases below to help you understand how powerful web3 technology can be in the world of media:
- With the advent of web3 in the media industry, new pricing options for paid content are emerging. Micro-payments have become economically efficient, and digital content is harder to copy illegally.
- Web3 has democratized the advertising market. The performance of each advertisement has become traceable and can further be compensated.
- Consumption-based usage allows real-time allocations of royalty payments.
In a nutshell, web3’s possible applications and technical innovations will impact the media industry in numerous ways. Content creators will be able to keep track of their royalties. Advertising revenues will also be shared efficiently based on consumption.
Web3 and social media
At the end of the day, we are all social creatures. Maybe this is the reason why we keep looking for new ways to communicate and eventually embrace them. Since ancient times, we have been adopting new modes of communication. We have come a long way from conversing through signals to expressing our emotions through words, chats and emojis. We found the web2 version internet-friendly until we realized the potential of its blockchain-based version, web3.
Web3 is decentralized and owned by the user community. Users are not limited to taking or sharing the data but also controlling it. They also play a pivotal role in value creation and decision-making through decentralized governance. Social media platforms utilizing blockchain’s decentralized networks are a great example of how web3 manifests in ways conducive to end users.
Let us see how social networking will evolve with web3. Firstly, the users will engage with each other on a peer-to-peer blockchain-based social network. This is achieved via a web3 wallet, essentially a unique digital user profile. The user’s activities within the web3 ecosystem will be recorded on the underlying blockchain network. Some platforms also reward users with the network’s native currency or ‘token.” These token rewards can be claimed for NFTs and other benefits like voting rights. Undoubtedly, the web3 revolution will completely change the fabric of social networking platforms and upend how we socialize and transact online.
Web3 entertainment and the growing popularity of virtual concerts
Many tech giants claim that web3 applications are limitless in their capabilities. In the case of the entertainment industry, it seems to be true. The level of influence web3 has over the entertainment industry is pretty evident, and it will seemingly revolutionize its several key aspects.
Hosting virtual concerts in web3 is now becoming a popular new trend. Many, including big musicians and pop stars, are now jumping on this bandwagon. This is the kind of transformation that no one ever thought would happen. While some still think it is a faint buzz, some already find this application of web3 in entertainment to be outstanding. Let us provide you with an overview of what virtual concerts look like in web3.
The major change one can feel while attending these concerts is the use of digital avatars. Those human-like digital avatars capable of doing all the activities a human can do are truly show stealers. In a virtual concert, the star and the fans are represented by their digital avatars. Fans can move around the stage, dance, clap, cheer, socialize and whatnot with their doppelgangers in the virtual universe. Starting from tickets and merchandise, everything is digital. Interestingly, a lot of assets, even show tickets are available in the form of NFTs. When you buy an NFT-backed show ticket or some other asset, you actually make an investment from which you can earn profits. An important key difference between virtual and regular concerts is the use of advanced effects, animations and sound to enhance the interactiveness of virtual concerts.
There are many amazing benefits of hosting concerts in web3. Here are the two most important benefits:
No front-seat participants rule
With web3, the practice of showing up early to secure a prime spot for the stage view is coming to an end. This is because of the live and multi-cameras surrounding the virtual event. The audience will get an even closer look at artists on stage, as the visuals offered are from several different angles.
The feature that sets virtual concerts apart from physical concerts is higher engagement. In the virtual world, artists are easily accessible. Artists can also easily interact with their fans. Further, during a virtual live show in web3, the audience can have a direct conversation with the artist and even make requests for songs. Not just that, fans can also interact with their friends. Hence, virtual concerts create endless opportunities for artists and fans to interact with each other.
How will web3 entertainment reshape the relationship between creators and their fans?
Imagine being at the concert of your favorite star and listening to them live, with each song having its own light, gravity and feel. It is not a dream anymore, it has now become a reality with web3-enabled metaverse concerts.
Web3 in entertainment means a wealth of untapped opportunities, especially for people associated with the music industry. Artists can perform in virtual shows that replicate the magic of real-world events. Further, these virtual concerts are not limited by any geographical constraints. Thus, unlocking unique experiences for fans and allowing them to be more deeply connected to the entertainers they love.
There are many other aspects of how web3 reshapes the relationship between creators and fans. Below are some of them:
Web3 in entertainment has given rise to an entirely new means of incentives for both creators as well as their fans. Blockchain technology and NFTs have lifted the boundaries between creators and their supporters. They are allowing fans to own digital assets like autographs, award-winning pictures, and precious moments of their idol in no time. NFTs offer them the opportunity to buy, sell and trade those digital assets and earn profits from them.
For creators, the introduction of NFTs has proved lifesaving. In the past, they had to rely on third parties to finance, produce and distribute their ideas on a massive scale. Now, with the advent of blockchain, they are able to share or present their ideas directly to their fans. This has further given rise to a new generation of creators and a larger, highly engaged community of fans.
Strong connection through feedback
Creators’ ability to connect directly with their supporters has brought in a greater level of accountability and communication. Web3 in entertainment is creating a new benchmark of engagement and interactivity. It places fans in the center of the conversation and allows creators to communicate and address feedback right away.
The traditional entertainment industry suffers because of broken ownership structures. Solving the issue, web3 in entertainment promises secure power and ownership rights to artists over the work they create. Nobody can claim ownership over some other artist’s work as it can be made secure with NFTs. Fans can buy tokenized versions of an artist’s work and can also resell them for a profit.
NFTs unleashing new opportunities for web3 entertainment
Entertainment has been an essential part of our lives since the beginning. It is not only the most valued industry worldwide but also affects a huge part of our culture in so many ways. Historically, the industry has been quick enough to adopt technological advancements to keep viewers hooked. So, it is only natural that when modern innovations like NFTs take shape, the industry embraces them. The opportunities NFTs in entertainment bring to the table are truly groundbreaking.
NFTs come with the potential to transform how films are produced and distributed. NFTs in movies allow filmmakers or producers to share ownership of the film with their viewers. Having the community involved in the marketing through NFTs allows movie makers to build loyal fan bases. NFTs used in the entertainment industry range from dialogues to video clips.
Besides, NFTs add a new dimension to movie merchandising as well. Instead of fans collecting posters and other memorabilia, they can now own a part of the film. Talking about the bigger picture, integrating NFTs into entertainment allows viewers and creators to connect beyond the theatre.
Long story short, NFTs will change the face of global entertainment in the years to come. This will be achieved through new monetizing models and unparalleled opportunities for artists, producers, creators and viewers.
Impact of web3 entertainment on content creation
We are rooting for a web3 world that is truly decentralized and governed by the community. As the Internet is evolving, content has become the most important pillar of the web3 ecosystem. This brings us to the conclusion that in the world of web3, creators will be the king.
Web3 entertainment is opening up new dimensions for creating content. Now, the content available over the web is immersive and interactive. It is undergoing some major changes and is on the path to becoming multi-dimensional, focused, creative and fully accessible. Web3 and its application, NFT, have truly allowed entertainment-based content to take a new form with high security and exclusive ownership rights. Everything from art to music to images and videos is leading us on the roads of deeper and more meaningful interactions. Effectively, with the dawn of the web3 era, we have already begun to see significant welcome changes for content creators.
As we move forward with new evolutions taking place within the web3 space, we will see entertainment become far more powerful, user-oriented and secure than it is now. As web3 entertainment undergoes transformative changes, the industry seems to be more transparent, secure, and audience-based. The fusion of entertainment and web3 works like magic; now, it is time for us to experience everything that seemed impossible in the past. It would be exciting to see what unique opportunities web3 entertainment will bring in the years to come.
If you are looking for robust web3 development services, contact Leewayhertz. Our developers can transform your ideas into reality.
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