The following is a guest post from Andrea Berry, Business Development Manager at Theta.
In the glittering world of Hollywood, the convergence of technological innovation and creative imagination has been a fundamental principle since its inception. The industry, known for captivating audiences around the world, has gradually evolved – from silent films to sound, from black and white to color, and now, from the physical realm to digital.
As we stand on the cusp of another significant evolution, Web3 presents a technological novelty and a fundamental change in the way we create, distribute and consume content. This change doesn’t just offer Hollywood another tool for its continued mission to captivate and entertain. Yet it challenges the hierarchies and control structures that the industry has relied on for decades.
Admittedly, adopting Web3 is a complex task, and the implications are vast and multifaceted. But Hollywood’s storied past is a testament to its ability to adapt, innovate and thrive in the midst of change. As the digital revolution accelerates and the demand for more inclusive, diverse and interactive content increases, the promise of Web3 could be the next big hit in Hollywood history.
In this context, the question is not whether Hollywood is ready to welcome Web3, but rather, can it afford not to?
A new business model
The Hollywood industry has found itself in turbulent waters. Traditional revenue models have been threatened by a variety of sources – the advent of streaming services, audience fragmentation and economic pressures exacerbated by the COVID-19 pandemic, to name a few. These challenges have forced the industry to rethink its approach, pivot and adapt to stay relevant and profitable.
Typically, Hollywood was controlled by a handful of powers, who had the sole power to greenlight projects, determine their distribution, and pocket the lion’s share of profits.
The relationship between fans and creators is usually one-sided. Fans are consumers, passively receiving content. This centralized model left many talented creators and innovative ideas in the dust, as custodians adhered to proven formulas and avoided risk.
Web3 ushered in a new era where fans are not just passive consumers but active participants. Through token ownership, fans can directly influence and interact with their beloved franchises.
Toonstar’s recent venture, the NFT-backed animated TV show “Space Junk,” exemplifies this innovative new approach to entertainment. NFT holders engage with the project’s intellectual property (IP) by building the show’s narrative, creating characters, and participating in token-only experiences.
NFT Token ownership is not just a digital badge of honor for fans; it’s a way for creators to explore innovative ways of monetization. This model offers a unique value proposition to fans and opens up additional revenue streams for creators. The intimate “feedback loop” forged by token ownership reduces the risk of projects failing, as creators gain valuable insight into audience preferences. This makes it easier to navigate the creative landscape, understanding what fans like and dislike, increasing their chances of success.
Even so, a significant shift is occurring in the entertainment consumption landscape, one that Web3 is uniquely positioned to address. Consumers, especially young, digital natives, are not just sitting down and consuming what is being served. They want, and increasingly demand, a more interactive, personalized and immersive experience.
Web3 isn’t just about introducing new technology into Hollywood’s toolbox; it’s about using this technology to fundamentally rethink the relationship between creators, consumers and content.
Hollywood is benefiting significantly from integrating Web3 into its operations by moving from a one-size-fits-all content production and distribution model to a more interactive, personalized and consumer-driven model, opening up innovative opportunities for monetization and customer engagement. fans.
This shift to Web3 is not about Hollywood trying to cling to its historic past; rather, we must see it as the industry that secures its future. Change is a constant, and it’s been huge in the entertainment industry. Through it all, the industry has shown a remarkable ability to adapt and evolve, to use the latest technology and use it to captivate audiences around the world. Today that technology is Web3, and once again Hollywood is at a crossroads of change.
Yet for this change to be meaningful and lasting, the industry must fully embrace it. It is not enough to adopt Web3 technologies; they must be willing to listen and adapt to the changing preferences of their audience. The promise of Web3 lies not just in its technological novelty, but in its ability to bridge the gap between creators and consumers to facilitate a more interactive, engaging and personal entertainment experience.
Hollywood, more than ever, must answer this call.