Ownership is the future of digital entertainment, says blockchain boss

Web3 is removing traditional entertainment industry with a new way to create and engage with digital content.

The industry has already seen non-fungible tokens (NFTs) show the potential to transform how scheduled TV programming can be made. Increased metaverse activity began to challenge artists with new opportunities for performances and connection to fans.

All of the use cases of Web3 technology that are upgrading the future of digital entertainment include one key component: ownership. Ownership is one of the defining characteristics that distinguish Web3 activity from its predecessor.

According to industry professionals, it will also be a defining characteristic not only of Web3, but of the future of digital entertainment.

Cointelegraph spoke with Mitch Liu, CEO of media and entertainment-centric blockchain Theta Labs, about what users can expect in the not-so-distant future of digital entertainment.

First and foremost, ownership redirects power back to the users who actually engage with the content, rather than a few powerful platforms. Liu highlights that especially with “tokenized economies for entertainment businesses,” both users and platforms benefit.

“For platforms that embrace Web3, they gain new ways to make money at a time when the margins of Web2 business models are shrinking.”

This comes at a time when competition within the streaming industry is leading to turbulent results for service providers. According to recent reports, platforms like Paramount+ and Disney+ saw an increase in subscribers in the last quarter. However, shares fell as much as 9% for the latter, and earnings for both fell short of official estimates.

Related: Social tokens will be the engine of Web3, from fan bases to incentivization

Liu says streaming wars lead to higher costs for users and more ads. Instead, he suggests that such platforms must adopt new business models that highlight the user experience. This comes through ownership.

“The key is to give the users and fans a say instead of all decisions coming from the top down.”

Liu went on to say that “giving more control back to users, whether it’s immutable ownership of a movie or the right to vote on how a platform works, will help avoid centralization.”

Metaverse activity is a way to specifically improve the user experience through ownership. As investors pour into the metaverse space, entertainment platforms can benefit from a new frontier with fewer barriers between audiences.

“Decentralized economies and user ownership can be built into metaverses from the ground up.”

According to a recent DappRadar report, metaverse and blockchain gaming projects raised $1.3 billion during Q3.

Companies in the area are also seeing the potential Web3 has for entertainment ventures, as blockchain developer Ripple created a $250 million fund to support entertainment and media-focused Web3 projects. The second wave of creators launched on October 18 this year.