Web 3 platforms like Fireside app are leveraging content creators through new funding and distribution models. Removing the middleman in the production process, giving actors and writers first hand access to Hollywood producers such as producer of the acclaimed Entourage TV series Doug Ellin. I’m launching a unique live stream first dates series called PLAYDATE on Fireside app for iPhone through October and November, Wednesday’s 1pm AEDT. Watch a minimum of four episodes on the Fireside app to go in the running to win AUS$2000 by sharing in 100 words or less your best first date experience. www.onthecuspprod.net
You may have heard of the creator economy. It sounds mysterious and definitely piques a sense of curiosity but what actually is it and how does it relate to Web 3? Like the gig economy it’s usually project-based work that is intermittent and involves the monetization of hobbies. Basically, people doing what they love and getting paid for it through new funding and distribution models.
So, what part does Web 3 play in all of this? To help you understand this brand-new concept let’s take a few steps back.
Web 1 is the birth of the internet, which was used for AOL messaging and emails predominantly. It had a clunky user interface and was in many cases read only.
Web 2 could be seen as the rise of blogging, file sharing and social media which began with mass adoption in the late 90’s to the early 2000’s. Big names in the space at the time included BitTorrent, MySpace and Napster. Having then evolved into the social media platforms of today including but not limited to Instagram, Facebook, Snapchat and Twitter and of course online dating which is revolutionizing modern love. Web 2 brought about the rise of the tech giants which came with privacy issues relating to users’ metadata being sold to advertisers.
Web 3 is the new era of the internet where people are being united with their personal data.
Data is being stored in ethical and secure ways allowing for more innovation in the creation of secure, open source and ethically designed platforms.
With current statistics proving there are close to 5 billion people using the internet this technology will be market shaping. Web 3 has attracted investment from many major names in business, technology and finance with $1.3 billion being invested into the creator economy alone in 2021. The inventor of the internet Sir Tim Berners-Lee runs a company called Inrupt. They are dedicated to supporting developers to innovate new Web 3 platforms.
One of the biggest issues with the creator economy is maintaining a steady income from content created. With platforms like YouTube and Spotify gaining millions of views for content it may seem like the creators are getting a good deal. Reality paints a drastically different picture, from early-stage VC and management consultant company Antler’s recent report on the new creator economy, they found that only 0.2% of the close to seven million artists streaming their music on Spotify were paid up to US$50,000. As for YouTubers with more than one million subscribers the average pay seems to be capped around US$60,000.
In a world where it’s becoming more and more difficult to be original, innovation is the keystone. With the existing creator economy being worth close to $104.2 billion and estimates showing there could be 1 billion people calling themselves creators by 2027 it’s surprising that content creators aren’t being compensated for their time. That’s where Web 3 and NFT’s come into the picture, offering the potential for increased liquidity to generations X, Y and Z in the next 5-10 years.
Social impact projects and philanthropic causes associated with the art world are making use of NFT’s, with traditional auction houses like Sotheby’s and Christies leveraging their art auctions with this new technology.
Initially NFT’s were used in play-to-earn blockchain games, where in-game assets could be transferred into digital currency tokens. In 2020 and 2021 ticketing of metaverse events using NFT’s grew in popularity with NFT’s being further integrated into many industries including art, sports, e-commerce and fashion. Data from a report on blockchain adoption by Top Right marketing shared that more retailers were interested in the uptake of blockchain technology driven by more transparency in supply chains and higher quality customer service. This could provide a boost to the market share from $113 million in 2020 to close to $2 billion by 2026. The momentous increase in NFT’s was spurred after the famous Travis Scott Fortnite concert raised close to $20 million including merchandise sales in a single night. This compares to $1.7 million on average being raised on each single night of a tour.
The reason being the virtual concert occurring in the metaverse allowed for 12 million viewers to attend as their digital avatars in the virtual world. The metaverse was a concept that was conceptualized in sci-fi stories such as Neal Stephenson’s Snow Crash, but like many other recent deep tech advancements it has come out of the science fiction movies into our lives as science fact.
According to data from PWC and Statista 2024 could see the Metaverse market reach $783.3 billion up from $478.7 billion in 2020. The financial libertarian ideology has driven the uptake of NFT’s for some game developers creating their individual digital tokens having links with DeFi’s long term outlook. Interesting to note that although there have been several months of downside price action for many crypto currencies, digital wallet downloads are increasing every week. At present in the example of Travis Scott’s Fortnite concert whose NFT tickets were minted by MultiNFT granted early access to special content and events, work for transactions in syndicated marketplaces and give holders access to rare NFT drops.
Facebook’s parent company changing it’s name to Meta Inc is a sign that there is plenty of developing and experimenting occurring in the social media space. User generated content is being displayed in many metaverse platforms from streaming sites like Twitch, providing unique distribution models linking new audiences to creator’s work.
At the moment NFT’s are about community building and are based on influencer marketing models. Token utility at the moment, is providing special access to community offerings, in theory it is capable of providing more liquidity to content creators and their fans, if more widely adopted. We are seeing the emergence of watch-to-earn streaming platforms that allow users to earn crypto tokens for uploading videos, sharing and watching videos on the platform.
SWIM a Web 3 startup’s recent partnership with Canada’s popular short video platform Underknown was big news for watch-to-earn as Web 2 platforms look for new ways of monetizing content through incentive driven protocols. With major investors such as Matterblock, Bridge Tower Capital and Galaxy Digital, SWIM will be launching a new Web 3 creator dashboard at Istanbul Blockchain week in November 2022. Social media is continuing to find avenues for expansion in Web 3 through platforms like Lens Protocol and CirleIt that have security of user’s metadata as a high priority. NFT’s are providing physical means of placing value on life and game experiences through engage-to-earn platforms like Taki and Poap.xyz. Here actual life experience can create value as on-chain assets to be used in virtual worlds like the metaverse. Companies like SuperLayer are incubator hubs for Web 3 innovators with their RLY Network token, introducing new ways to interact with blockchain tokens increasing awareness and adoption of this new technology.
Although there are no blockchain dating sites having life experiences and interests logged as on chain assets could help algorithms match you with compatible partners in the future of online dating, preventing from catfish exploits, helping to keep dating platforms safe. Disney Plus trumping Netflix in 2021 was surprising to watch with more competition for viewers on streaming platforms, Hollywood is going to need to take notice of the cost effectiveness and efficiency that blockchain technology’s immutability could offer.
Payment systems for actors, writers and producers can be complicated with backend points and commissions from sales. The pressure of court cases and attorney’s fees could be alleviated due to discrepancies in contractual agreements through the use of blockchain, where everyone’s contribution is logged as an on-chain asset. People are demanding more transparency in business processes, especially in financial promises made from studios to actors and creatives. Entering data on blockchain smart contracts prevents any manipulation to contracts saving on time consuming court cases to reclaim pre-agreed upon settlements. This also applies to ownership rights for scriptwriters. Having scripts as on-chain assets could prevent copying and remove contention regarding ownership.
Fireside app and Decentralized Films are helping to create new funding and distribution models for the underrepresented producers of tomorrow through Web 3. This is an innovative method of crowd funding allowing for micro-investments through the purchasing of NFT’s on new filmic content. Keeping track of many small investments can usually be cumbersome for businesses.
When this new transformative system is in motion investors could be offered more collaboration in the creative process with the aim to offer a more equitable method of producing blockbuster films which is currently monopolized by a small group of producers who have a say in how well a film does, how much an actor gets paid and who directs the films.
Blockchain and Web 3 may be just at the beginning of mass adoption but it has many true believers in itseffectiveness and ability to transform existing systems redistributing power and money through consensus-based decision making.
Written by: Sage Godrei
Sage is an award-winning script writer and actor seen in films streaming on STAN & Amazon Prime. She’s a business ecosystems thinker, a results oriented creative with a social conscience who believes in the alternative press and disruptive technologies.
As a crypto reporter she is interested in the intersectional space where technology and storytelling combine, creating an immersive media tech-culture. She’s gained multiple event sponsors for theatre shows & has received cultural grants.
SAGE GODREI Instagram @seemoresage Facebook @OntheCuspProductions