NFT activity in the entertainment industry: Summer 2022 update

Crypto is down and the value of the majority of NFTs tied to the value of crypto has fallen, but entertainment companies remain committed to the long-term opportunities NFTs – especially those that provide ongoing utility – offer consumers.

The Variety Intelligence Platform has updated our overview of who does what in NFTs with expanded coverage that now divides the companies into four areas: entertainment (TV, streaming & theater), gaming, music and sports, many of which have continued to launch new NFT products despite negative press for the market.

The majority of major entertainment companies have experimented with NFTs or at least announced plans to do so. The output often takes the form of collectibles based on the IP, which is what AMC Networks (“The Walking Dead”), Disney (Marvel, classic Disney characters), Fox (“The Masked Singer,” “Krapopolis”), Paramount (” Star Trek, “Rugrats” and “Hey Arnold!”, Universal (“Jurassic World Dominion”) and Warner Bros. Discovery (“Shark Week”, DC Comics and Looney Tunes) do.

Loyalty programs are also included. Netflix and Paramount have already tried their hand at rewarding viewers of some streaming services, creating free games for “Stranger Things” and “Ghosts,” respectively, that reward the first thousand players to solve puzzles with exclusive NFT rewards.

Warner Bros. Discovery is also using NFTs as a way to reward audiences, inserting one QR code each night into “Shark Week” content, which encourages live viewership and is a trend it expects many more networks to do to increase audience numbers.

Gamers as a whole have not been welcoming to the idea of ​​NFTs being added to their platforms. This is evidenced by the lukewarm response to Ubisoft’s Quartz marketplace, EA’s recurring comments on NFTs in its games, as well as Minecraft and Valve’s Steam platform banning NFT integrations.

Given that gamers have been exposed to cash as loot boxes by game studios for years, it’s not hard to see why there would be built-in resistance. Nevertheless, many game studios have announced plans for NFTs. These tend to be based on IP rather than being items that offer utility to users.

The reaction from the major console manufacturers has been remarkable. Microsoft – ultimate owners of Minecraft – has not ruled out sensible NFTs in the future, while Nintendo is aware of the potential but biding its time. Sony recently announced PlayStation Stars, but was quick to point out that the digital collectibles were not NFTs, suggesting reticence about the concept within the company.

Music companies were among the first to recognize what NFTs could offer for new products to reach consumers. (See VIP+’s “State of the Entertainment NFT Market” webinar for insight from Warner Music Group’s SVP of New Business Ventures Alex Kamins on this.)

Ticket sales have been an area that many have also embraced, but to varying degrees of usefulness. Ticketmaster and Live Nation Entertainment have launched collectible NFT versions of tickets to attended events, with Warner Music Group recently announcing plans for something similar. NFT ticketing company YellowHeart has taken a different tack, using the NFT itself as the ticket, producing benefits for consumers such as cutting out fraud and setting limits on the amounts ticketing can charge.

Another trend in utility has been NFTs that offer various benefits to holders. Tiësto recently released his “All Access Eagle” NFT, which grants early access to tracks and other perks yet to be mentioned.

Snoop Dogg chose something similar with his “Stash Box” NFT for the “BODR” album. This allowed users to win access to an exclusive track, NFT games, exclusive songs from Death Row Records and future NFT access. It seems natural to see more artists opting for limited edition tools.

Sports are really embracing the NFT format. Amid the crypto winter roaring outside, the likes of the NFL, NBA and MLB continue to create new NFT collections. A common theme has been to follow the lead of the NBA and partner with Dapper Labs for video highlight compilations, like the NFL and UFC have, or to create an alternative highlights product à la NHL and WWE.

The majority of leagues have at least one, and sometimes several, lines of trading card NFT collectibles. Another trend to be aware of is the NFT games for fantasy sports that MLB and MLS have entered into with Sorare. With the NFL season starting soon, seeing an NFL fantasy game should be expected.