By Nishant Chandra
What comes to your mind when you hear the word entertainment? Most likely, you think about Netflix, movies, mega sports events, etc. However, entertainment and events are not new for humankind. It has been an essential part of our lives since the beginning. In the Roman Era, we had gladiator fights while in India, we had our own forms of entertainment like storytelling, theatre, and much more.
As the time progressed, and with that our technology improved, the events became more and more organised and bigger in size. Musical concerts, football matches and community festivals became central to human societies. We love to take part in activities, support our teams, go to concerts, and watch plays. It makes sense that the global event business has an annual market size of USD 890 billion and generates USD 70 billion in income from event tickets. Now, as we enter a new era of technology, we are seeing another transition from these physical events to Metaverse based events.
However, the entire event industry, or ticketing industry to be specific, is riddled with numerous challenges. Despite the fact that humanity has reached Mars, the USD 70 billion worldwide tickets market is outdated. History shows that there used to be a significant amount of ticket scalping during Gladiator battles. Currently, ticket scalping is done by bots. The amount of secondary ticket sales that are ultimately given to touts is estimated to be USD 15 Bn.
To make matters worse, the 65.8 billion dollars that sponsors and advertisers spend annually on event sponsorship have no information on or interaction with ticket buyers. Even though it is the twenty-first century, sponsors continue to spend billions of dollars on billboard advertising in the hopes that sports fans in the stadium would interact with the brand. Additionally, there is nowhere for event planners to raise money for their events using tickets as collateral. In other words, there is no platform that integrates Event Organizers, Financers, Primary Buyers, Secondary Buyers, Advertisers, etc. to manage the complete lifecycle of tickets.
With 90% of the market share in their respective regions, the Web 2.0 ticketing systems have now developed monopolistic and exploitational tendencies. Without providing any additional value, a small event organiser must pay up to 30% upfront to these companies in order to be featured. The combination of Data Analytics, Blockchain, and NFTs is currently causing disruption in the monopolistic, billion-dollar web 2.0 ticketing sector.
But first, what are NFTS, exactly? Block chains are being propelled into uncharted territory by nonfungible tokens (NFT) on the backs of adorable kittens and pixelated punks. What can seem to be the haze of speculation over frivolous artefacts is instead the hazy horizon of invention. NFTs mark a significant turning point. Today, assets outside of the network are represented using blockchain technology. Ticketing and event management are two upcoming enterprise applications of NFTs. NFTs make it possible to engage customers in new ways, improve digital ticketing, and create new revenue streams. Ticket fraud is decreased, and a native secondary market is made possible by blockchain-based ticketing.
This eliminates scalping, fraud, and the sale of tickets on the black market while simultaneously enabling royalties to be paid to the event organisers anytime a ticket is exchanged. Tickets, as non-fungible or semi-fungible tokens are tradable assets that can be valued over time and may be regarded collectible or exclusive due to specific add-ons. Customer involvement potential with NFT tickets include the ability to accumulate and combine tickets for redeemable incentives.
The experimentation in tickets as NFTs has just begun. Mark Cuban for the Dallas Mavericks is already experimenting Tickets bundled with NFTs of his team. AMC has tied up with Sony to airdrop Spiderman NFTs to people who bought Spiderman tickets. The NFL is exploring tickets on NFTs. Garry Vee believes that by 2030 the QR code in ticketing will be obsolete and entire ticketing from cinemas to airlines will be in NFTs. Closer in Asia and middle east, Blocktickets conducted World’s First Holi on Metaverse and bundled with NFT tickets the NFT of sponsors were airdropped and sold passes for multi city Premiere of blockbuster movie Vikrant Rona premiered on 26th July 2022.
These dynamic tickets make the tickets cool and collectible in addition to providing the buyer with the ability to buy and resell them and the organiser with the opportunity to receive a royalty each time the ticket changes wallets. How? Imagine that the NFT ticket itself displays a fresh Artist or Brand announcement every 24 hours. Furthermore, Reveal NFTs are sold in conjunction with the Tickets. These NFTs are after-the-fact surprises that contain the most memorable parts of the occurrences. Imagine being the owner of an Oscars 2022 Reveal NFT that features “a furious Will Smith slapping comic Chris Rock.”
To sum up, the combination of events, blockchain, and NFTs is the ideal recipe for fun, income growth, and the eradication of current inefficiencies in the events and ticketing sector. The blockchain-based ticketing system is going to transform how events are organised and it is going to redefine entertainment for people. We can only wait and watch all the excitement that unfolds in the coming years.
The author is the founder of Blocktickets