Changing The Entertainment Industry with Blockchain Technology
In a world of social media, streaming platforms, video games, and virtual reality (VR), we can add Non-Fungible Tokens (NFTs) to the list (right under cryptocurrency, of course). Celebrities and companies have found a new way to connect with their loyal followers.
Whenever something is 'limited edition,' ears tend to perk up. The ability to have something that ONLY a couple hundred or fewer people have is something to be seized if and when possible. NFTs capitalized on this exact sales strategy. In this blog, Hollywood Branded discusses how NFTs are shaking up the entertainment industry as a fresh form of digital art.
A Brief Explanation on NFTs
There's been a lot of talk about NFTs in the entertainment industry, but what the heck are they? Let's start with the non-fungus stuff. Nonfungible means it can't be replaced by something of its unique exact equal value. For example, if you lose your red Frixion Pilot Pen, you can just as easily purchase a new one from your local store that is the exact same as there are millions of those same pens out in the world. If you lose a 1/100 authentic Van Gogh paintings, however, you're out of luck. You could say that the painting you lost is nonfungible. It is basically a fancy way of saying "exclusive", "rare", or (our favorite) "limited edition".
Next on our stop is the 'T' in NFT. The 'T' stands for token. In addition to not being interchangeable, what makes NFTs so valuable is how it is stored on the blockchain as a "token" or form of currency since they do have value among a group of people (large or small). Fordham Law School's crypto-digital assets professor, Donna Redel, describes NFTs saying "The underlying thing that you're buying is code that manifests as images. You're buying a different format of art." The time to create this art could take from minutes to hours or days to make one. How much it's sold for? That all depends on the eyes of the beholder. This brings us to how celebrities and brands are taking advantage of the recent spike in the creation and purchases of NFTs.
Photo by OpenSea
The Weeknd
With the rising interest in NFTs, the Weeknd partnered with Nifty Gateway to host an NFT auction earlier this month on April 3rd. The auction included some unreleased music and limited edition artwork. During this auction, there were two parts to the event. The first was a flash sale for three different visual graphics. Embedded in the purchased artwork, fans had access to hear a filtered segment of an unreleased song by the Weeknd. The sale for the NFTs was unlimited but the purchase was of them were time-sensitive.
The second part of the auction allowed fans to bid on an exclusive 1-of-1 piece of art complete with the full song, 'The Source', unfiltered. By purchasing this NFT, one lucky person now owns the only copy of that piece of art and whole unfiltered song.
For all who are wondering how much a sale of NFTs can be, The Weeknd took in a solid $2.29 million in sales. This is a number that can only increase as more people gain interest in collecting NFTs.
Kings Of Leon
Speaking of firsts, while The Weeknd was having his first NFT auction, Kings of Leon became the first band to release an album an NFT. For $50, fans of Kings of Leon received (depending on their NFT package) a unique animated NFT artwork, an exclusive Golden Eye Vinyl, and a digital copy of their full album When You See Yourself.
If this wasn't enough to convince fans, Kings of Leon hosted an auction that gave collectors the chance to bid on one out of six rare golden ticket experiences. The holders of these tickets will be given front row seats to any show of their choice in the world for each tour forever. On top of that the owner of the ticket will receive a personal driver, concierge at the show, a hangout with the band prior to the show, and exclusive lounge access. When they leave, the fan's car will be filled with one of each item from the merch booth for them and their attendees.
From their NFT sale, Kings of Leon generated over $2 million where they donated more than $500,000 to Live Nation's Crew Nation Fund. Kings of Leon have demonstrated that not only can NFTs bring in the dollars, but they can also be used for a charitable cause.
WarnerMedia
Music artists aren't the only ones taking advantage of the recent NFT craze. Companies such as WarnerMedia have recently released their own NFTs. These limited-edition NFTs were created according to content produced by WarnerMedia. They were then given to randomly selected attendees and entrants of WarnerMedia Rise.
The additional content and programming was WarnerMedia's own way to engage people near and far throughout the time of virtual SXSW. Not only did it enrich the connection WarnerMedia had with its business partners by providing insightful content, but it also strengthened the connection fans had with their programs. The giveaway NFTs definitely gave fans something to talk about and share their love for their favorite program with others. It is clear that this is only the beginning for WarnerMedia as they dive into the universe of NFTs.
Celebrities and Companies Move Toward NFTs
Having seen the success of artists and companies such as The Weeknd, Kings of Leons, and WarnerMedia, it is only a matter of time until others follow. The result being NFTs become the new norm for all events and marketing strategies. The question now lies on how NFTs fit into the budget, as gas fees (cost to mint or create the token) can range from any time with the added cost of selling fees. The following question then is, where will the money be pulled from in order to fund the creation and exchange of these digital assets? Only time will tell...
Cryptocurrency Is Taking Over
With the latest development of technology, NFTs are only becoming more popular and valuable. Don't miss out on the crypto craze!
It's never too late to learn something new. Check out some of our blogs on cryptocurrency!
- How Cryptocurrency is Changing Business with Jamar James
- Understanding Blockchain
- Blockchain's Impact On Branding And How To Leverage With Influencers
- Celebrity Investments In Apps And Technology
- Top Brand Partnerships For Goosebumps 2: Haunted Halloween
Music is a compelling tool that is often overlooked because of the allure of visuals. Watch the video below to learn more about hitting your target audience through the power of music!
