Are NFTs a buy now? Here’s what Early Adopters Disney, Netflix’s next Battleground looks like

Non-fungible tokens (NFTs) make digital creations unique. But what are NFTs? Are NFTs a buy now?

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Making digital copies is easy. Whether on a computer or mobile device, users can copy and paste, making copies with just a click of the mouse. These copies are also cheaper: when broken down, it’s just simple classical economics where supply and demand determine the price. The more copies we make, the lower the price per copy. The law applies as much to the real world as to the virtual world.

On the other hand, an original Renoir painting or a unique opera performance does not have copies and costs a high price because they cannot be imitated. They are non-fungible.

So what happens when we want to make a digital object – digital art, digital awards, digital certificates – unique?

Non-fungible tokens or NFTs are digital inventions that make digital creations unique. NFTs are digital certificates of authenticity. Due to the blockchain technology underlying NFTs, ownership rights are tamper-proof and immutably recorded on a block.

NFTs can be traded on exchanges. However, trading volume and total sales for NFTs have plummeted with the crypto market. The JPG NFT index is down to 33.04 from a peak of 92.70 in April. So, are NFTs a bargain now?

Most NFTs today run on the Ethereum blockchain and have the programmable features of smart contracts. Since NFTs are digitally generated tokens, they can be used to secure ownership of both tangible and intangible objects. In addition to artwork, collectibles and real estate, NFTs can also be generated for tweets and several other types of internet content.

Battleground for top media players

NFTs are already a new venture for the top players of streaming content Walt Disney (DIS) and Netflix (NFLX). These leaders know that their premium content alone is not enough. They have had to reinvent themselves again and again to attract viewers and keep their lead.

Viewership growth is a closely watched number for these companies. Disney+, Disney’s streaming service. is on track to reach 260 million subscribers by 2024.

On the other hand, Netflix saw its subscription numbers fall for two consecutive quarters earlier this year as it increased its standard package price. Subscribers have always been aware of the high price that premium content demands, and also wary of price increases. They have been ready to opt out when the plans become too expensive.

Netflix finally turned around, increasing its subscription base by 2.4 million in the third quarter ahead of the ad-based package that will come at a lower price. The leading streaming content provider is following an early move by Disney+ to launch a cheaper ad-based package later this year.

The big transition to on-demand content started with Alphabethis (GOOGL) YouTube and wandered by Etsy‘s (ETSY) and eBayits (EBAY) print on demand, SoundCloud, Spotify (SPOT) and finally to streamed video content that Netflix, Hulu, Amazon Prime and Disney+ dominate.

NFTs in the Metaverse: The Next Big Thing for Streaming Content

At Netflix or Disney, NFTs will allow content creators to continue to own digital rights to the content being streamed. This can lead to authors offering their content independently without a curating intermediary. Viewers may also be able to sell their opinion on a show in a tweet and make it an NFT as well.

But just as importantly, NFTs can be a new way to get viewers by letting them say how much they enjoyed a show. For the third season of “Love, Death and Robots,” Netflix launched an NFT treasure hunt on OpenSea. The NFTs sell for a fraction of one ETH, so they are not expensive.

But the relative price of each NFT sale will show how much viewers enjoyed it compared to other Netflix shows. That kind of data could help the streaming giant measure viewers’ likes and dislikes and curate its content more effectively.

Disney has also partnered with VeVe Digital Collectibles for its NFT collectibles. But it has also chosen crypto firm Polygon to explore a theme park metaverse for “next-generation storytelling.”

It has other plans, including partnering with Lockerverse to tell stories through augmented reality that has its own NFTs and Flickplay, which discovers NFTs connected to real-world places that users can experience and share through augmented reality.

NFT adoption is likely to increase, but right now NFT sales volume is low. Top NFTs like CryptoPunks and Xmon can still command a huge price. But NFTs as a whole have yet to regain the momentum they had in 2021 and earlier this year. But as companies see new ways to use NFTs, interest is likely to increase, making them bargains.

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