Web3 done right: Token-Gated Access could be the ticket to Hollywood
In a recent column, I wrote about an example of what’s wrong in the NFT world from the perspective of the creative community. Specifically, OpenSea recently changed its resale royalty policies and now prioritizes buyers and sellers over the creators who built the value of the marketplace in the first place. This week I can happily point to an example of Web3 in Hollywood done right – putting creators at the center and connecting them directly with their fans and audiences to unlock new value. The formula is essentially more flavor (exclusive access) but less padding (NFT jargon).
This week, “American Idol” creator Simon Fuller’s new “The Musical: Welcome to the Night of Your Life!” film musical debuts exclusively via token-gated tickets on Web3 app OP3N. Fuller’s new musical features international pop supergroup Now United, who have a rabid fan base, particularly in Brazil. (Full disclosure: I am an advisor to OP3N.)
Digital tickets act as a passport to give fans exclusive access. This is what’s most interesting to me about scenarios like this: the ticket itself, defining countless value possibilities, becomes both a collectible for fans and a canvas for artists to paint the kind of experiences they want to offer (and monetize). Fans will choose from three tiers of tickets, each unlocking different levels of added value and experiences. These fans will then surely get access to the film, the soundtrack and additional benefits which include access to the band members themselves.
“This project allows me to redefine how an audience can engage with content,” said Fuller. “Not only can it be enjoyed just as entertainment, but fans can now actually participate.”
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This is a big deal for what it represents. First, Fuller is a leading figure and innovator in the entertainment world, and his vote of confidence in this ever-emerging Web3 space means something. Others will follow. Second, Fuller’s film represents one of the most ambitious entertainment projects yet to be exclusively distributed on the blockchain. Third, this implementation with multiple tiers of tickets at different price points and with different benefits shows the kind of creativity the entertainment community can bring to audiences via Web3.
This is precisely the kind of mutual exchange of value that NFTs have long promised but few have delivered so far. Creators, in this case Fuller and Now United, make more money and gain more transparency in their reporting by going direct to fans and bypassing gatekeepers and middlemen who collect tolls. They also now know who their fans are and can communicate directly to them to deliver (“airdrop” in Web3 parlance) new benefits over time and market new, ongoing revenue-generating opportunities. Meanwhile, the public (in this case Now United faithful) make more memories by joining a community of like-minded fans who gain access to brand new experiences and perks, including potential direct access to the artist himself (a perk offered here).
Crucially, now United fans pay by credit card instead of being forced to figure out how to create crypto wallets and exchange dollars for ether before they can even buy anything. The familiar interface doesn’t even mention Web3 or NFTs. Blockchain mechanics are invisible. And that’s the point!
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The advantage for creators is of course that Web3 enables a new direct artist-fan channel with endless new possibilities, and with significantly better economics. That’s why other Hollywood players like the Tribeca Film Festival are already playing in the Web3 game. Tribeca is now selling “NFT Passes” for its June event. (They clearly didn’t get the memo to call them digital “tickets” or “collectibles” instead.) Benefits include exclusive access to special festival events.
Other well-funded Web3 players with high entertainment ambitions include YellowHeart, which released the first major NFT album with Kings of Leon in 2021. YellowHeart also offers token-gated exclusive access to music, opening up a new release window for content that eventually find themselves elsewhere, demonstrating once again that fans pay to get down. YellowHeart CEO Josh Katz calls ticketing “a perfect use of NFTs.”
YellowHeart, OP3N, and others who share Web3 DNA demonstrate how “digital tickets” and “digital collectibles” (in other words, NFTs—just don’t call them that!) can be a boon to the entertainment community. Blockchain technology also promises to crack down on ticket fraud and scalping, and enable creators to receive an ongoing royalty for resale (OpenSea’s lack of enforcement on this point is what got the company into trouble).
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Web3 even enables fans to invest, literally, in their favorite artists, filmmakers and content franchises, thereby offering the creative community a new source of funding for an audience both emotionally and financially incentivized to watch, listen and market to others. That’s not happening here with Fuller’s project, but music distributor Royal is doing just that, promising to let fans “invest in music” and “earn royalties with every stream.”
Just like with everything in Hollywood, relationships matter most. And the relationship between artist-fan, creator-audience is the most important and should be front and centre. Entertainment icon Fuller shows the industry where to take Web3 – and how to not let jargon and technical complexity get in the way of a good time.
For those of you interested in learning more, visit Peter’s company Creative Media at creativemedia.biz and follow him on Twitter @pcsathy.
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