Exploring the Value of NFTs in Entertainment: The Rise of Digital Collectibles | CryptoTvplus
The integration of blockchain technology and non-fungible tokens (NFTs) into the existing model was a topic of discussion during a panel session at the London Blockchain Conference 2023. This conversation highlighted the potential for exciting use cases in the streaming industry. However, it also raised some concerns about the use of blockchain.
Speaking from a Hollywood perspective, Ryan Kavanaugh, CEO of Proxima Media, highlighted an interesting observation. He pointed out that many theater chains, pay-per-view companies and tech-based firms have already integrated blockchain technology into their operations, even if they don’t explicitly refer to it as “crypto” or “NFTs.”
Kavanaugh emphasized the inefficiency and frequent delays in the accounting process for royalties and payments within the entertainment industry. This often puts content creators at a disadvantage. He envisioned a future where blockchain technology provides real-time visibility into revenue, eliminates unnecessary middlemen, and ensures fair compensation to creators.
Moreover, Kavanaugh predicted that digital collectibles would have the same value as physical ones, especially among teenagers and young adults. He pointed to successful companies such as Roblox, Fortnite and Minecraft that have already taken part in this trend.
Tony Mugavero, CEO and co-founder of RAD NFTV, emphasized the importance of simplifying the management of ownership rights. He envisioned a platform where creators could easily designate payees through a user-friendly interface, with smart contracts that automatically distribute payments as revenue is generated.
Mugavero highlighted the transparency offered by blockchain, which allows for auditability and appropriate compensation. As a benefit, the original creator or owner of an NFT could receive royalties for resale, he mentioned.
Brooklyn Earick, CSO of RAD NFTV, emphasized the importance of seamlessly integrating blockchain technologies into existing platforms without overwhelming users. The goal is to make it easy for people to use these technologies, Brooklyn suggested.
Ryan Kavanaugh acknowledged the issue of transaction fees, but emphasized that the current issue extends beyond costs. He shared an example where marketing an NFC-enabled sweater, instead of an NFT, enabled easier acceptance.
He believed that streaming companies would resist the concept of decentralization because it poses a threat to their control. However, he predicted that the industry would eventually embrace blockchain technologies as unions and guilds advocate for transparency and blockchain-powered financial systems in the entertainment industry.
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