Below is a guest post from Andrea Berry, Head of Business Development at Theta.
In the glitzy world of Hollywood, the fusion of technological innovation and creative imagination has been a guiding principle since our founding. Known for captivating audiences around the world, the industry has gradually evolved from silent film to sound, from black and white to color and now from the physical realm to digital.
Web3 brings technological novelty and fundamental changes to how content is created, distributed and consumed as we are about to make another significant evolution. This change will not only give Hollywood new tools to carry out its ongoing mission to captivate and entertain. Yet this challenges the hierarchy and gatekeeping structures the industry has relied on for decades.
Admittedly, Web3 adoption is a complex undertaking and its implications are far-reaching and multi-faceted. But Hollywood’s storied past is a testament to its ability to adapt, innovate and thrive amidst change. As the digital revolution accelerates and demand for more inclusive, diverse and interactive content increases, Web3 could be the next blockbuster in Hollywood history.
The question in this context is not whether Hollywood is ready to welcome Web3, but rather whether it can afford not.
new business model
The Hollywood industry is in turmoil. Traditional revenue models have been threatened by a number of factors, including the emergence of streaming services, fragmented audiences, and economic pressures exacerbated by the COVID-19 pandemic. These challenges have forced the industry to rethink, reorient and adapt its approach to remain relevant and profitable.
Hollywood was usually ruled by a few powerful people who had the exclusive power to greenlight projects, make distribution decisions, and capture most of the profits.
The relationship between fans and creators is usually one-way. Fans are consumers and passively receive content. This centralized model has left many talented creators and innovative ideas buried as gatekeepers adhered to proven formulas and avoided risk.
Web3 has ushered in a new era in which fans are active participants rather than passive consumers. Through token ownership, fans can directly influence and interact with the franchises they love.
Toonstar’s recent undertaking, the NFT-backed animated TV show Space Junk, exemplifies this revolutionary new approach to entertainment. NFT holders participate in the project’s intellectual property (IP) by building the show’s narrative, creating characters, and participating in token holder-exclusive experiences.
Ownership of NFT tokens is more than just a digital badge of honor for fans. It’s a vehicle for creators to explore innovative monetization methods. This model offers a unique value proposition for fans and an additional revenue stream for creators. A close “feedback loop” formed through token ownership gives creators valuable insight into audience preferences, thus reducing the risk of project failure. This makes it easier to navigate your creative environment, understand what your fans like and dislike, and ultimately increase your chances of success.
Content personalization
Still, the entertainment consumption landscape is undergoing a major shift, and Web3 is uniquely positioned to respond to this shift. Consumers, especially young digital natives, are not content to just sit back and consume what they are offered. They want more interactive, personalized, and immersive experiences, and they’re demanding it more and more.
Web3 isn’t just introducing new technology to Hollywood’s toolkit. It’s about using that technology to fundamentally rethink the relationship between creators, consumers, and content.
By integrating Web3 into its own operations, Hollywood moves from a one-size-fits-all content creation and distribution model to a more interactive, personalized and consumer-driven model, innovating for monetization and fan engagement. It has benefited greatly from the opportunities it has opened up.
This move to Web3 isn’t about Hollywood trying to cling to its storied past. Rather, the industry should be viewed as securing the future. Change is constant, and that change is very noticeable in the entertainment industry. Through it all, the industry has shown an amazing ability to adapt and evolve, embracing the latest technology of its time to captivate audiences around the world. Today, that technology is his Web3, and Hollywood is once again at the crossroads of change.
But for this change to be meaningful and sustainable, it needs to be fully embraced by the industry. Adopting Web3 technology is not enough. They must be willing to listen and adapt to the evolving tastes of their audience. The promise of Web3 lies not simply in its technical novelty, but in its ability to bridge the gap between creators and consumers, facilitating a more interactive, engaging and personal entertainment experience.
More than ever, Hollywood needs to heed this call.
