Traditional media companies are showing little understanding of NFT mechanisms.
They don’t understand how to compete against new technologies that have emerged in recent years, allowing content creators to upload their own digital assets without visiting a centralized marketplace.
The most obvious challenge is that blockchain technology will revolutionize media distribution. Blockchain makes it possible for creators to issue non-fungible tokens (NFTs), which allow them to distribute their work without relying on a third party like Spotify or YouTube.
But it doesn’t stop there.
NFTs are not just a way to sell digital items. They will create a secondary market around membership, content & community. NFTs can be one of the emerging technologies that have the power to disrupt media as we know it today.
The secondary market will allow people to buy and sell goods, services, and content related to the original purchase. In the case of a digital video game, this could mean that I’ll be able to resell my downloaded copy and sell any in-game items or special characters I have unlocked.
In other media formats, this could mean that someone can resell their digital book or movie they previously purchased and potentially make money selling any extra content like chapters, interviews with cast members, deleted scenes, etc.
NFTs can be used as currency in the secondary market, allowing users to purchase items from other users.
This makes NFTs such a disruptive technology, as they can change the way we purchase and sell our media. Currently, if I want to watch a movie or read an e-book that my friend has already bought, I have no choice but to pay again for it.
With blockchain technologies like Ethereum and others like Avalanche emerging, NFTs can be used as currency in the secondary marketplace. This means I could pay my friend directly for access rights to their digital content instead of paying for a platform like Apple or Google again.
In this case, tokens become more than just an object representing value but can also represent ownership over something else entirely.
Users who create content or build communities will have their work rewarded through tokens for contributing.
As the internet continues to grow, content creators can monetize their work through paywalls or advertising.
However, this doesn’t guarantee they will be fairly compensated for their time and effort based on how popular their media becomes.
With NFTs, users can receive tokens that represent value in exchange for creating content or building communities. This means that users are appropriately compensated for their content based on how much it is used and shared by other people in the market.
If I sign a deal to publish a book of recipes, but only 5 people buy a copy, my work has zero value as an author/creator overall. But if 5 people decide they want to purchase and own a single tokenized recipe, with blockchain-based residuals paid to me as a creator, I have been given a new way to monetize those recipes and finally be fairly compensated for the time and effort I put into it.
This new economy is sustainable because it creates a cycle of buying and selling between users, encouraging content creation and community building.
Content creators won’t need large marketing budgets and rely on the existing community they build to share their content.
This new economy is sustainable because it creates a cycle of buying and selling between users, which encourages content creation and community building; we will now see more people creating digital art or writing e-books instead of uploading media like videos that require larger budgets for marketing purposes.
Tokens can also be spent on exclusive access to premium features such as early access to new products or services, discounts on merchandise, free shipping, etc.
Users can unlock new product features by spending tokens that represent value in exchange for early access to new products or services, discounts on merchandise, free shipping, etc.
This means that the market will become more competitive as companies are forced to offer better deals for users to purchase their goods and services with tokens instead of through fiat currency alone.
If you don’t want your tokens anymore, you can spend them on charity donations or even donate them back to the company to continue creating more valuable products/services.
We could see a shift in how companies fundraise by allowing their users to donate tokens back into the company. This would allow them to continue building products or services while earning revenue through token sales rather than relying solely on fiat currency as they do now.
Traditional media companies will need to start dedicating resources solely to staying on top of these emerging technologies if they want any chance at competing for the audience’s attention and currency within the next 5 years. Because they won’t just be competing with other media properties; they’ll be competing with every single member of a token-holding audience.