From Snoop Dogg to Mad Men, NFT tickets are urgent
With plagiarism on the rise, the entertainment industry seems to be looking for exclusive measures to combat the same. It is believed that non-fungible tokens (NFTs) are expected to solve this problem largely through ticket sales.
According to Grand View Research, a market research and consulting firm, 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 and 2030. NFTs seem to have caused a disruption in the entertainment sectors as well in digital arts, gaming, among others. It has the potential to transform the way films are made, produced and distributed.
“As a result, NFTs can potentially allow creators to produce independent films and have creative distribution. Through NFTs, creators can distribute part of the ownership to viewers and raise necessary funds without being limited by budget constraints and financing methods. NFTs have the potential to prevent Internet Protocol-based theft in the entertainment sector,” Vikram R Singh, founder and CEO, Antier, a blockchain development and consulting 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 example, the average mint price for an Ethereum-based NFT is $70. According to VeeCon’s official website, the average price of one VeeCon ticket was NFT $351.60 of a multi-day super conference event this year, with a total sales volume of $12,660.
Data from Binance, a cryptocurrency exchange, highlighted that using an NFT ticket system can help reduce resale value and fees using decentralized protocols such as smart contract. “In this type of ticketing system, event organizers can create the required number of NFTs on the blockchain platform of their choice. A buyer buys NFT-based tickets directly from the ticket company. Upon receipt of payment, a smart contract is triggered and a ticket database sends an NFT ticket to the buyer , said Amanjot Malhotra, India Country Manager, Bitay, a cryptocurrency exchange.
Experts believe that NFTs could allow fans to own digital collectibles in addition to authenticating original signed posters, event and movie tickets, antique entertainment items and memorabilia, among others.
Insights from Founders Legal, a corporate and intellectual property law firm, stated that an NFT-based entertainment industry could provide the benefits of anti-duplication, monetization for creators, providing a decentralized storage platform, among others. “Through NFT-based digital collectibles, fans can get exclusive experiences without compromising the versatility of the digital world. Furthermore, the metaverse also carries the potential for interactive sessions with names associated with the entertainment industry, which are required to be supported by NFT,” said Kameshwaran Elangovan, co-founder and CEO, GuardianLink, a blockchain-based organization.
Industry analysts have further pointed out that the cost of organizing a Web3.0-based event depends on the rarity of the event, along with factors such as the immersive experience and the type of blockchain used. According to CoinMetro, a cryptocurrency exchange, token gating, which gives holders of a particular token rights to exclusive content, helps provide data security, multi-level verification systems, low overhead and easy 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 emphasized.
In addition, it is assumed that NFT’s use in the entertainment industry can open up various avenues for artists, producers, viewers, among others, with viewers expected to have direct participation opportunities towards the industry’s happenings. According to VentureBeat, a technology website, production house Lionsgate has partnered with NFT platform Autograph to create NFTs for franchisees such as Mad Men, John Wick, and The death games. “NFTs are becoming part of Web3.0 technology, which is expected to ensure their integration with applications such as Instagram and WhatsApp. It is expected that the increase in platforms, which leverage 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 users to endow their benefits,” said Varun Desai, head of arts and culture, Tezos India, a blockchain-oriented platform.
Reportedly, around 100 Web3.0 events have taken place in India, with a Goa-based Web3.0 conference held in August. From an international perspective, it is estimated that over 1,000 Web3.0 events have occurred to date. In August, rappers Snoop Dogg and Eminem performed the NFT track ‘From the D 2 the LBC’, at MTV’s Video Music Awards.
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