Latest Entertainment

Op-Ed: Hollywood needs Web3, not the other way around

The following is a guest post from Andrea Berry, Head of Business Development at Theta.

In the shimmering world of Hollywood, the convergence of technological innovation and creative imagination has been a bedrock principle since its inception. The industry known for enthralling audiences worldwide has gradually evolved – from silent films to sound, from black and white to colour, and now, from the physical realm to the digital.

As we find ourselves on the cusp of another significant evolution, Web3 represents a technological innovation and a fundamental change in the way content is created, distributed and consumed. This change doesn’t just offer Hollywood another tool in its ongoing mission to entice and entertain. Still, it challenges the hierarchies and gatekeeping structures the industry has relied on for decades.

Of course, Web3 adoption is a complex task, and its implications are wide-ranging and multi-faceted. But Hollywood’s glorious 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 grows, Web3 promises to be the next big blockbuster in Hollywood history.

In this context, the question is not whether Hollywood is ready to welcome Web3, but whether it can’t.

a new business model

The Hollywood industry has found itself in troubled waters. Traditional revenue models are threatened by a variety of sources – the advent of streaming services, audience fragmentation, and economic pressures exacerbated by the COVID-19 pandemic, to name only a few. These challenges have forced the industry to rethink its approach, pivot and adapt to remain relevant and profitable.

Typically, Hollywood has been controlled by a handful of powerhouses who had exclusive rights to greenlight projects, determine their distribution, and pocket the bulk of the profits.

The relationship between fans and creators is usually one-sided. Fans are consumers, passively receiving content. This centralized model drove many brilliant creators and innovative ideas to dust as gatekeepers followed tried and tested formulas and shied away from risk.

Web3 has 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 favorite franchises.

ToonStar’s recent venture, the NFT-supported animated television show “Space Junk,” exemplifies this innovative new entertainment approach. NFT-holders are connected to the project’s intellectual property (IP) by creating the show’s narrative, creating characters, and participating in token-holder-only experiences.

NFT token ownership isn’t just a digital badge of honor for fans; This is an opportunity for creators to find new ways to monetize. This model introduces a unique value proposition for fans and opens up additional income avenues for creators. The intimate “feedback loop” created through token ownership minimizes the risk of failed projects as creators gain valuable insight into audience preferences. This makes it easier to navigate the creative landscape, understanding what fans like and hate, ultimately increasing their chances of success.

personalizing content

Nevertheless, a significant shift is occurring in the landscape of entertainment consumption, a shift that Web3 is uniquely positioned to address. Consumers, especially the young, digitally native demographic, are not satisfied with sitting back and consuming what is served. They want, and increasingly demand, a more interactive, personalized and immersive experience.

Web3 isn’t just about introducing a new technology to the Hollywood toolkit; It’s fundamentally about using that technology to re-imagine the relationship between creators, consumers and content.

Hollywood benefits greatly from integrating Web3 into its operations, transitioning from a one-size-fits-all content production and distribution model to a more interactive, personalized and consumer-driven model that opens up new avenues for monetization and fan engagement. Opens up opportunities.

This shift towards Web 3 isn’t about Hollywood trying to cling to its stoic past; Instead, we should look at it as an industry to secure our future. Change is a constant, and it has been very prominent in the entertainment industry. Through it all, the industry has shown a remarkable ability to adapt and evolve, adopting the latest technology of the day and using it to captivate audiences around the world. Today, that technology is Web3, and once again, Hollywood finds itself at a crossroads of change.

Yet, for this change to be meaningful and sustainable, it must be fully embraced by the industry. Adopting Web3 technologies is not enough; They must be willing to listen and adapt to the evolving preferences of their audience. The promise of Web3 lies not only in its technological innovation but in its ability to bridge the gap between creators and consumers to facilitate a more interactive, engaging and personalized entertainment experience.

Hollywood, more than ever, needs to heed this call.