The effect of NFTs on the Entertainment Industry
It has become common to see our favorite artists getting sued for copyright infringement, such as Beyonce’s ‘XO’ or Dua Lipa’s ‘Levitating’. Plagiarism is a big issue in creative fields like music, films, or the arts. However, what if we could solve this million-dollar problem with blockchain-backed technology? Yes, this can be a reality.
The use of NFTs, or non-fungible tokens, is key to solving the plagiarism issue. The entertainment industry is increasingly adopting the concept of NFTs as a way to counter plagiarism. Additionally, niche fans can experience exclusive content as NFTs act as select clubs. To further expand our understanding of NFTs, we need to know what NFTs are and what NFT marketplaces are to make informed investment decisions. We also need to know how NFTs are changing the entertainment industry. Finally, we will discuss key points to analyze if NFTs are viable long-term investments.
Let’s imagine a scenario where you are a new artist and are producing music in your home. You are publishing new music on social media platforms like Facebook, Instagram, etc. every week. Suddenly, one of your reels goes viral and someone starts using your music without giving you credit. It is normal to feel betrayed in this scenario. Some of your close associates would even suggest that you file for copyright, but this is a long process that only a few can afford or pursue. NFTs leverage blockchain networks to tackle the copyright issue. NFTs have brought about a positive change in the entertainment industry.
Is a solution to help artists protect their intellectual property a good investment option? Will it encourage investors to consider NFTs as a viable long-term investment option? Let’s first understand the concept of NFTs.
NFT (Non-Fungible Tokens)
Digital certificates built on the blockchain network are known as NFTs. Most users create NFTs using the Ethereum blockchain network. The asset’s ownership is guaranteed with the digital certificate. How would we know the original creator of the NFT art if it had been sold further to someone? Well, NFTs are built on a blockchain network that records every transaction and maintains a public ledger. Blockchain transactions cannot be removed or changed once they are added to the ledger.
This feature wins the trust of buyers and sellers and provides transparency. Artists can focus on their work and earn royalty without worrying about plagiarism. Let us further dive into this subject and understand how artists produce their NFT art through the NFT minting process.
The first step for an artist is to choose a crypto wallet or a crypto exchange. Once selected, the artist must choose the NFT marketplace to launch and showcase their art. OpenSea, Rarible, and Foundation are some of the top NFT marketplaces. Next, the artist can choose their art, set the terms and conditions for payments and royalties, and launch their NFT art. It is important for investors to learn about the numerous real-world use cases of NFTs and how to mint NFTs to understand why they are such popular investment tools.
The impact of NFTs on the entertainment industry
The entertainment industry is valued at 2.2 trillion dollars or Rs. 15,000,000 crores globally. Outsiders are usually not welcome as the industry is close-knit despite such high valuations.
However, small-scale artists are getting recognition with the launch of NFTs. For example, a Hollywood movie called “Antara” is being produced by one of the NFT communities, the Arabian Camels. This film cost Rs. 375 crores to produce. Furthermore, directors, studio heads, and big-ticket actors such as Bob Iger, Rupert Murdoch, and Reece Witherspoon are producing TV shows and movies by investing in NFT technology.
NFTs have encouraged new and young talents to showcase their work without worrying about intellectual property theft. NFTs offer a way to democratize the entertainment industry. Additionally, NFTs provide a big platform for artists with limited and niche audiences. Fans are treated to exclusive content by artists on their NFTs.
Investors should conduct thorough research before investing in NFTs if they are interested in making long-term investments. Investors can analyze the owner and other facets of an NFT since minting NFTs has become an accessible technology. Investors should also study the social media traction and the level of engagement that a particular NFT art has garnered to gauge the true value of the NFT art.