The entertainment and media industry is among the most important sectors, not because of anything else but because it makes the world less gloomy. Just imagine how we’d be living if there was no entertainment in the world. What a boring and tiresome life it would be. Actually, this industry is among the biggest economic sectors globally, with a market value of over USD 2.8 trillion in 2023.
This industry has been growing and changing in various forms. However, one industry has risen up and is making major changes to the whole market. This is the latest technology in town: cryptocurrency. Many industries have been leveraging this blockchain-based technology to make life more effective. Because of this, the cryptocurrency market has been growing at a tremendous rate. In 2020, the market cap was at $757.31 billion, but by the end of 2023, it had already clocked $1.68 trillion.
But the main question here is, how is this market affecting the entertainment industry? Is it transforming entertainment for the better or for the worse? This article handles that in depth.
Incorporating in gaming
Today, many gaming platforms have incorporated cryptocurrencies to aid in in-game purchases. Now, players are able to purchase items, upgrades and skins using digital currencies like Bitcoin, Ethereum, SOL and others. The use of crypto streamlines transactions by reducing the need of having traditional payment processors and enhanced security.
All this is sorted by blockchain technology, which is among the most secure forms of technology, making it almost impossible to tamper with.
Additionally, some platforms are now rewarding players by means of cryptocurrencies for achieving certain milestones or completing certain tasks. For example, when a player finishes a quest, they are rewarded with a number of Bitcoins or any other token. The good thing about these rewards is that they can be used for in-game purchases or can be exchanged in the real world. How cool.
These are a number of games that have already incorporated crypto into their ecosystems. For example, Axie Infinity stands out for using its own cryptocurrency. Players can earn this token (AXS) by reaching certain achievements to shape the game’s ecosystem. Another game is Decentraland, a VR platform where players can trade and build on virtual land using MANA, the game’s cryptocurrency.
Its use in music
Cryptocurrency has been changing the music industry by coming up with new ways for musicians to connect with their fans as well as manage their earnings. By using blockchain technology, musicians can bypass traditional intermediaries and get paid directly without having to go through recording labels. You can be sure that this kind of sift has empowered artists to increase their fan engagement.
Well, a good thing about crypto payments is that they are fast, secure and transparent. This is very appealing for both fans and artists. Additionally, some platforms even allow fans to invest in their best artists by purchasing tokens. This actually allows them to have some partial ownership of a song or album, benefiting the fans whenever sales are made.
There are a number of case studies that we see this trend following, and the first one is Imogen Heap. She was among the first artists to embrace blockchain technology and crypto. In fact, she released her song, Tiny Human, on the Ethereum blockchain, which allowed fans to have a portion of the song by trading shares. Another example is Kings of Leon, a rock band that released their album as an NFT. Also, 3LAU is a DJ and music producer who launched a music festival on a blockchain platform and sold the albums as NFTs.
These are just a few case studies. You can be sure that there are many others in the music industry who are following this trend.
Crypto in sports
Nowadays, athletes are leveraging cryptocurrencies to create sponsorship deals. Crypto companies are especially interested in sponsoring football clubs because they can easily get to the fans. For example, in the EPL 2021/22 season, all 20 teams, apart from one, had a crypto sponsor. The most interesting thing is that whether the value of the crypto plummets or goes up, these companies have stayed firm with sponsoring the clubs.
When it comes to fan engagement, teams and athletes offer interesting experiences and merch to fans by using crypto. Let’s take, for instance, the Chilliz blockchain-based platform Socios.com. Here, fans can buy branded tokens that give them voting rights and polls on club matters. Just imagine being in a position where you have a vote in determining whether a certain player will be bought by the team or not.
In an earlier statement by an Arsenal spokesperson, they wanted the fans to engage with the club in a number of ways. In this digital day and age, the spokesperson continued, saying the club is finding new ways of engaging their supporters and making them feel more part of the team.
Other blockchain-based platforms include NBA Top Shot and SportsCastr. In the last platform, viewers have the opportunity to access premium features through cryptocurrency.
As we conclude
We can all agree that blockchain technology and cryptocurrency are technologies that are rapidly changing the world. In the next few years, you can be sure that the entertainment industry will have added more ways in which they utilize these technological advancements. So, you had better watch out, and if you have yet to embrace this new-age technology, start doing so.
