Warner Bros. enters Web3 with NFT movies

by James · October 21, 2022

Frodo Baggins survived the journey to Mordor and now his next great adventure takes him to the blockchain. Warner Bros. Discovery (WBD) is launching Ethereum-compatible Web3 movie experiences and non-fungible tokens as part of the new WB Movieverse. The first release contains The Lord of the Rings: The Fellowship of the Ring and will be available from October 21.

These “multimedia living NFTs” include extended 4K UHD editions of the film, hours of special features, interactive content, multiple menu experiences and hidden augmented reality (AR) collectibles. It’s similar to buying a DVD with extra features, except Warner Bros. says fans will be able to own and trade the experience in a common marketplace.

And Middle Earth is just the first stop for Warner Bros. The giant entertainment studio is planning a series of Web3 movie offerings from Warner Bros. Home Entertainment division.

The Fellowship Of The Blockchain

For the film experiences, Warner Bros. collaborated. with Web3 content startup Eluvio. The Eluvio Content Blockchain enables publishers to monetize all kinds of entertainment – from shows and concerts to digital collectibles and metaverse experiences – for fans to enjoy. The platform offers digital asset management, 4K streaming, NFT mining and premium content trading.

Eluvio has worked with some of the biggest names in entertainment on their Web3 initiatives including WWE (WWE), Microsoft (MSFT), SONY pictures (SONY) and MGM Studios (MGM). In addition, the Eluvio Content Blockchain is interoperable with other blockchains, including Ethereum, and uses an environmentally friendly proof-of-authority consensus, Eluvio says. In PoA algorithms, only trusted nodes in the network are chosen to validate transactions.

However, the WB Movieverse platform will not be Warner Bros. first step into the crypto space. In August, it teamed up with social NFT platform Nifty’s to launch a collection of Looney Tunes NFTs featuring different images of the classic cartoon characters. And in September, it partnered with the pop culture collectibles company Funko (FNKO) on series of DC Comics NFTs.

Meanwhile, Warner Bros. shares rose nearly 3% Thursday afternoon ahead of third-quarter results after the market closed. For the period, analysts expect Warner Bros. earnings to plunge from 42 cents a share to a loss of 22 cents a share, according to FactSet. And revenue has more than doubled to $10.45 billion.

Meanwhile, WBD stock is down nearly 45% so far this year.

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