How NFTs are Disrupting Collector Culture in Entertainment

By Jake Fraser, Business Development Manager at Mogul Productions

The entertainment industry is one of the largest in the world and plays an important role in our lives, with a global market of $2.2 trillion. TV series, music albums and movies in this industry shape our daily experiences. Similarly, actors, filmmakers and musicians hold a special place in our hearts. And we often go out of our way to express our love and admiration for our favorite stars. It’s the root of fandom culture.

People also spend thousands of dollars to own unique artwork, posters, merchandise, and other collectibles related to celebrities and their profession. For example, K-Pop fans collect cards that come with music albums and new releases. Similarly, Harry Potter enthusiasts have notably spent thousands of dollars on unique items featured in the films.

Overall, almost every fandom has collectibles that fans are willing to buy. But most of the existing collectibles are just decorative items. They don’t give fans any real, tangible value or even the experience of being an active contributor to the domain. Thus, the entertainment industry, always adaptive to technological innovations, has found a new disruptor in NFTs. NFTs are poised to redefine collectibles by giving fans true long-term value.

NFT Collectibles: the new frontier of collector culture

NFTs, or non-fungible tokens, first appeared with CryptoKitties. The game allowed players to breed rare cats and sell them in markets. And with its huge success, people realized the potential of digital collectibles and NFT technology.

The non-fungibility of NFTs promised exclusive ownership of the underlying assets, and artists were the first to jump on this bandwagon. They’ve earned millions of dollars selling digital artwork as NFTs, which further speaks to fans’ desire to own unique items within their fandom. The demand for NFT has therefore grown exponentially, making it an industry in its own right worth over $17 billion.

In this context, NFTs are helping to reinvent collector culture and the way fans interact with the entertainment industry. They allow fandoms to dispense with mere posters or merchandise, instead providing fans with assets with lasting social and financial value.

From Fandangle to Valuable Assets

Major production houses are now partnering with NFT marketplaces and digital artists to create NFTs for their upcoming projects. For example, Arabian Camels produces Antara, a $50 million Hollywood movie. The producers recently announced an NFT drop for the project. This NFT collection will allow holders to contribute to the production of the film, own part of the digital rights and benefit from its box office success. So while having something to collect in the fandom, fans also benefit from the overall performance of the film and become part of the production process.

Also, NFT collectibles are an asset, not a liability. So, even without additional benefits, these collectibles are inherently more valuable than existing ones. When you think about it, the possibilities are virtually endless. From digital maps and posters to clippings or audio, it’s possible to tokenize anything and offer them as NFTs to fans. It is also possible to burn decision-making, financial and social benefits for fans directly into the NFT.

Mogul Productions, a decentralized film finance platform, launched an NFT collection in 2021, celebrating Stan Lee’s legacy. The collection included ten adaptations of Stan Lee’s iconic Marvel covers that pop artist Rob Prior had painted. Fans who won the auction for these NFTs also received the physical painting signed by Stan Lee himself. Mogul Productions went further by creating an NFT marketplace for the entertainment industry. The platform partners with some of the biggest names in entertainment to bring valuable collectibles to fans.

Even the four media giants Fox, Warner Media, Lionsgate and ViacomCBS have launched NFT initiatives to offer better collectibles. Fox created The MaskVerse to allow fans to create limited-edition digital masks for characters from all six seasons of The Masked Singer.

ViacomCBS has partnered with RECUR, a leading non-fungible token (NFT) company, to develop a fan-centric platform where users can buy, collect and trade NFTs as digital commodities. Pam Kauffman, President of Consumer Products for ViacomCBS, said: “Vaverse collectors and early NFT buyers will find unique opportunities to own some of their favorite franchises.”

These projects give us insight into how NFTs can transform fandoms and collector culture within the entertainment industry. They are about to rewrite the very meaning of collectibles, from simple fandangle to treasured assets that people can enjoy for the long haul.

Building a Mutually Beneficial Relationship

For entertainment fans, NFTs offer plenty of opportunities to collect and profit from their favorite fandoms. Even for artists, celebrities, filmmakers, and producers, NFTs guarantee plenty of leeway to market their films, circumvent budget constraints, and build fandom from scratch.

Overall, the integration of NFTs into showbiz creates a mutually beneficial relationship between fans and the industry, creating a space where both parties can thrive.

About the Author:

Jake Fraser is Head of Business Development at Mogul Productions, a DeFi and NFT marketplace platform for the film and entertainment industry. Jake has over 10 years of experience in a variety of industries such as sports, entertainment and crypto. He has helped build several successful businesses and specializes in sales, marketing, product development and strategy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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