2021 is the year of the NFT.
Hitherto niche blockchain-based non-fungible tokens exploded in popularity in Q1, with global sales on the Ethereum blockchain approaching $1 billion in Q2 2021, an astonishing increase of 105 times the $9 million in sales seen in Q2 2020.
Variety Intelligence Platform’s “NFT + Entertainment” special report hones in on not just what they are but how they are currently being utilized by Hollywood and where the booming market may go next.
As is clear from data based on NFT sales on Ethereum, the most popular types currently are collectibles, which include most, if not all, entertainment-related NFTs. These can take the form of collaborations with popular collectibles such as cartoony “CryptoKitties,” exclusive add-ons from album releases that yield real-world benefits or scenes from famous or noteworthy shows or events. Soon they'll even include NFTs layered onto tickets sold for sport events and concerts.
Note that popular sports sales, such as NBA Top Shot, take place on blockchains other than Ethereum (Top Shot is based on Flow, for example), but the Ethereum data does suggest the recent surge in NFT sales is being led by collectibles and thus entertainment-based products.
VIP+ partnered with GetWizer Consumer Insights to assess the interest that U.S. consumers have in NFTs (a deep analysis of the data can be found in our September “Demographic Divide” report). One key finding: Overall interest in the phenomenon is strongest among those age 15-29, with 52% interested in at least one of the categories measured. That percentage declines steeply the older one gets, as just 12% of those 60+ say they're likely to engage.
This represents the greatest hurdle NFTs have to overcome. With their cryptic name and basis in blockchain, it is very easy for less digitally savvy folks to dismiss what could sound like techno-mumbo-jumbo.
But with entertainment companies ranging from TicketMaster to Panini offering simplistic functions for NFT purchases within their existing platforms, this may change over time. It will need to do so for NFTs to reach full market penetration.
Read on to learn about:
The media market opportunities that NFTs present
How entertainment companies harness their power
Possible limitations to the NFT market in entertainment