Nonfungible tokens (NFTs) have already demonstrated the power to change how television scheduled programming is created. Enhanced metaverse activity began to present artists with new opportunities for performance and interaction with their fans.
All of the ways Web3 technology is improving the future of digital entertainment have one thing in common: ownership. One of the distinguishing features that distinguish Web3 activity from its predecessor is ownership.
According to industry experts, it will also be a defining feature not only of Web3 but also of online entertainment's future.
Cointelegraph spoke with Mitch Liu, CEO of the media and entertainment-focused blockchain Theta Labs, about what users can expect from digital entertainment in the not-too-distant future.
First and foremost, ownership returns power to the users who are actually engaging with the content instead of a few powerful platforms. Liu emphasizes that tokenized economies for entertainment businesses profit both users and platforms.
This comes amid when competition in the streaming industry is causing service providers to experience turbulent results. According to recent reports, subscriptions to platforms such as Paramount+ and Disney+ increased in the last quarter. However, the latter's stocks fell as much as 9%, and earnings for both fell short of official estimates.
Streaming wars, according to Liu, result in higher user costs and more advertisements. Instead, he proposes that such platforms adopt new business models that prioritize user experience. This is accomplished through personal ownership.
"Giving more control back to consumers, whether it's immutable ownership of a movie or the ability to vote about how a platform works, will help to avoid centralization," Liu continued.
One way to improve customer experience through ownership is through metaverse activity. As investors pour money into the metaverse, entertainment platforms will be able to capitalize on a new frontier with fewer barriers between audiences.
According to a recent DappRadar report, metaverse and blockchain gaming initiatives raised $1.3 billion in total during the third quarter.
Companies in the space recognize Web3's potential for entertainment ventures, with blockchain developer Ripple launching a $250 million fund to support entertainment and media-focused Web3 projects. On October 18 of this year, it launched its second wave of creators.