If non-fungible tokens (NFTs) are to become something more than a cryptographic way to buy, sell, and display images of Bored Apes and CryptoKitties, entertainment companies will have to use them as something more. than a digital version of marketing extras in the vein of the Darth Vader or Luke Skywalker action figures that George Lucas launched with “Star Wars” in 1977.
They will have to be part of it, Deloitte said earlier this year in a report examining five trends that could drive growth in the media and entertainment industries. That’s not to say that NFTs’ ability to provide rarity and engagement as collectibles won’t be part of the mix.
But unique digital assets can ‘lead to more digital product innovation [and] greater autonomy for their creators,” Deloitte said in its 2022 Media & Entertainment Industry Outlook report.
One of the companies trying to do this with NFTs is Fox Entertainment, which is spending up to $100 million of the billions of dollars it saves by not building a streaming service to create “competitive advantage in building a business on the blockchain,” CEO Charlie Collier told Variety this week. “It will pay dividends long into the future.”
Another is Animoca Brands, whose roots are in blockchain and NFT gaming. An early investor in CryptoKitties, the 2017 hit cat-breeding game that first brought NFTs to mainstream attention as cute kittens sold for up to $100,000, Animoica has been greatly developed since then.
These are now the biggest investor blockchain projects in Asia, Bloomberg said, citing more than 340 of them across gaming, finance and social media. These also include Axie Infinity, a “play to win” crypto game that blockchain proponents have called the future of gaming. It is also by far the most successful NFT project of all types, with 2, 1 million traders who bought, sold and resold NFT Smooth Love Potion which is key to gameplay 17 million times, according to DappRadar.
They spent $4.2 billion on it. And while much has been made of its plummeting daily user count — 250,000 from 2 million at the height of the crypto boom late last year — by opponents of the game-to-win concept, who call it “pay to win,” there are a few other factors at work. Notably that the current crypto winter crash has reduced potential earnings, and that one of the biggest crypto hacks of all time – the $625 million Ronin network attack in March – targeted a cross-chain payment bridge used by its customers.
See more : In a $625 Million Hack, a Bigger Crypto Security Problem Is Exposed
To be creative
Fox’s Blockchain Creative Labs is led by Scott Greenberg, who also runs the studio behind the hit animated series “Bob’s Burgers.”
Greenberg’s first big NFT test, Variety said, is “Krapopolis,” an animated show set in ancient Greece. A “fall” of 10,420 “Krap Chicken” NFTs came out earlier this month, but the goal isn’t to make money from those sales, he said. They’ll come with a range of perks and extras, ranging from NFT screens and meet-and-votes on things like an episode’s closing song and even an extra animated role.
Scheduled to debut next year on Fox, “Krapopolis” is “batting practice,” Greenberg told Variety.
“Building a fully realized world and cast of wacky characters on the blockchain has never been done before,” he said. “And in terms of the fan experience, it will come to life like no other show has.”
Longer term, Collier said he sees the Blockchain Creative Labs business as a bridge to Web3, a still theoretical future version of the web believers say will be built on the blockchain and free from the control of big tech.
With NFTs able to do things like curate videos and generate royalties for creators on every resale, Collier likened it to an anti-Napster allowing content owners to monetize every transaction.
“We are reinventing home video,” he said.
Animoica Brands CEO Yat Siu said much the same thing about Web3 to Bloomberg, calling it a way to give people ownership of their virtual property and break the “digital dictatorship” of big tech. .
While Animoica has had some big hits — it also has a piece of two other top-selling NFT collectible lines, Bored Ape Yacht Club and CryptoPunks, and it’s turning the former into a video game — it still has a lot to prove.
Whatever the cause, Axie Infinity’s best days may be behind it, and so far no one else has been able to create another great game to win, let alone of AAA-level success. There’s a lot of opposition to the concept among hardcore gamers, who are a necessary component of a successful gaming ecosystem, and it’s running into issues with another high-profile game.
It’s a three-year-old racing game, F1 Delta Time, that saw players spend hundreds of dollars on NFT cars only to see them rendered useless and worthless when Formula 1 failed to renew its license.
But his long-term goal, Siu told Bloomberg, is to build an organization where sellers and buyers — game makers and gamers — can gain the upper hand.
“As an organization, we believe in capitalistic inducement,” he told Bloomberg. “It’s not that everything has to be equal in its distribution, but rather, whatever you end up doing should always have a net benefit to everyone else in your community.”
This is a goal that NFT-based gaming games have yet to prove they can achieve.
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