NFTs are booming but is a bust likely for the entertainment industry?

The idea of a non-fungible token emerged from Colored Coins, initially released on the bitcoin blockchain in 2012. Will the blockchain-based digital assets NFTs revolutionize consumerism entirely, or would it be another passing craze with short-term influence?
Technology over the last decades has been transforming drastically, and we are witnessing its profound impact on several industries, especially the broadcast industry. Smartphones, 3D printers, VR headsets, virtual reality and NFTs are unlocking possibilities once deemed unimaginable.
The rise of NFTs in the television industry is a possible sign that the way we consume content could be at the precipice of change.
Although NFTs have been around since 2012, it was not until 2021 that it broke into the mainstream. Digital collectibles and on-chain art have been sold for millions of dollars, and the digital phenomenon quickly became a buzzword worldwide.
Big brands began exploring NFTs as a means to trade their products. American rapper Snoop Dogg turned Death Row Records, an American record label, into an NFT label; multinational food and beverage brands such as McDonald’s are exploring ways to deliver food using NFTs.
While many are still familiarizing themselves with the digital concept, whether NFTs are a boom or bust for the entertainment industry — only time will tell.
For now, it is indeed a booming new revenue stream that the broadcast industry should look to leverage. However, so far, sustainable business models are largely unproven and in their infancy.
As one of the most profitable industries worth over $2.2 trillion, the entertainment world has never failed to amaze its audience with a stream of new movies, TV shows and music. It has stood the test of time by staying relevant.
Entertainment providers must evolve and adapt to the ever-changing market by exploring new and creative ways to diversify their offerings.
For example, they are using digital art and collectibles as a new medium to retell beloved, classic stories, creating a new narrative that will be presented through NFTs.
Entertainment providers must capitalize on the intersection of legacy media and new modes of storytelling and distribution.
Exploring the integration of NFTs into the entertainment industry could enable brands to provide a more varied and profound experience for their audiences.
This integration could increase their competitive edge, promote innovation within the industry and expand their commercial potential.
Movie NFTs could pave the way for entertainment providers to distribute part ownership of their content to their viewers while raising the required funds.
Furthermore, another realm where NFTs could make a significant difference in the entertainment industry is movie merchandising. Fans have always been keen to own parts of their favorite films by collecting posters, clothing, and character figures, so NFTs cater to this need.
Whether or not NFTs become the new way of entertainment, the industry needs to grow new capabilities and understand the new digital phenomena by expanding opportunities and advancing the ecosystem to offer renewed experiences.

Whether or not NFTs become the new way of entertainment, the industry needs to grow new capabilities and understand the new digital phenomena by expanding opportunities and advancing the ecosystem to offer renewed experiences.

Jamie Cooke

The biggest names in the industry, such as CNN and Fox, are now investing in NFTs. Last year, Fox invested $100 million in making NFTs; the network then announced an NFT company, launching with an animated series by the popular show Rick and Morty’s creator Dan Harmon. CNN also branched into the burgeoning NFT space with a new offering called the “Vault by CNN.”
However, apart from being an attractive new revenue stream, NFTs are a possibility to add new dimensions allowing real engagement in the global entertainment industry, which may be the next turning point that is worth understanding.

• Jamie Cooke is the general manager of Warner Bros. Discovery Middle East, CEE, Baltics, Mediterranean, and Turkey.