Why decentralized IP will be the next big thing ??????

Exploiting intellectual property (IP), from Movies (James Bond) to Music (Nirvana) to Books (Lord of the Rings) to modern franchises (Fast & Furious) has been at the core of entertainment for decades.

The process is linear - developing the story & IP, from product to marketing. These strong narratives draw people in and cut user acquisition costs as people flock to?sequels, prequels and spin-offs.

But the tokenization of media through blockchain technology gives birth to three new trends:

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• The next Harry Potter could come from a decentralized group of individuals jointly developing a story without a central medium (e.g. book), instead of the writers room of a major studio or a brilliant individual.

The startup "Invisible Universe" develops IP over social media.

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• IP will be broken down in fractions of licenses, open for the public or exclusive to members. Those licenses could be traded as easily as (crypto) currency over blockchain technology and mobile phones.

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• Traditional licensing won't work with decentralized ownership. IP, usually a long term asset, could become fluid - trade as assets on exchanges or become a payment method.

While fairly early days, we already see companies or communities building and capturing interest along those lines:

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• A decentralized media franchise with Its own coin ($DINK), where token holders receive an NFT for every animated episode that drops. Comedian and Influencers participate in those episodes and are (usually) token holders themselves.

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• Started with a 100 NFTs containing pixel art, that got remixed by the community to over 1,600 different assets. Now Blitmap has heroes and is building its own universe around NFT and also merchandise drops.

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• Loot dropped “randomized adventurer gear” as NFTs on the blockchain. The catch: there is no backstory or game, only a simple description. The community is actively developing stories, games and art around the items, increasing their value.

The gold standard for traditional IP has been The Walt Disney Company - managing IP across all verticals better than anyone. Acquiring Marvel Entertainment, Pixar Animation Studios and Star Wars cemented their position as global leader in IP Blockbuster production.

But while the transformation from linear to fluid IP will take more time,?the next Disney could already be in the making.

#blockchain #entertainment #media

Sources:

https://future.a16z.com/fans-drive-hit-ips/

https://naavik.co/themetas/loot

https://www.gamesindustry.biz/articles/2021-06-21-disney-interview

https://www.fastcompany.com/90668219/this-startup-is-building-the-pixar-of-the-internet-one-tiktok-at-a-time

https://www.dinkdoink.com/

https://www.tubefilter.com/2021/07/07/janky-guggimon-nfts-christies-auction-superplastic/