‘Internet collectibles’ is the new rage. And, media organizations are cashing in! This new opportunity involves the sale of high-value authentic content through ‘non-fungible tokens’ (NFTs) that act as a digital certificate of authenticity.
The content that media organizations have access to spans a wide range of categories, from films and television shows to sports, events, art, music, advertisements and more. Further, countless consumers of this content already exist all over the world and, in many cases, consumers are ‘superfans’ who love the content they consume.
With the arrival of NFTs, superfans can now own authentic and limited edition pieces of the content they love. Media organizations enable this ownership through the setup of NFT trading platforms, and by ‘minting’ NFT-backed content for sale to the market. These content pieces are bought, owned, and traded by superfans, creating a market within the trading platform.
A non-fungible token (NFT) is a type of data stored on a digital ledger, also known as blockchain. Anything that is non-fungible cannot be interchanged with another asset of the same type. Hence, NFTs can be used to certify digital assets as unique. A physical equivalent to this would be a certificate of authenticity for a piece of art, or the individual numbering on a limited edition book.
How are NFTs being used?
As NFTs verify the authenticity of digital content, the owner of a digital content NFT can be verified via the blockchain ledger. Digital content such as music, art, photos, videos, television shows, movies, sports events, advertisements, and social media posts can all therefore be owned and tracked.
Importantly, there can be multiple verified copies of the same content. So, for example, a piece of digital artwork can have any number of NFTs associated with it, in much the same way as a physical artist may produce a limited run of say 100 signed prints. The artwork is the same, but the total number of copies in the market is known and limited. Digital art was an early content type where NFTs have been used because of their ability to provide a unique signature and assure ownership. Recently, the artist Beeple sold a digital piece of art for US$69.3m at Christie’s auction house. The most notable example of this to date is the creation of ‘NBA Top Shot’, an NFT trading platform backed by the NBA, where basketball fans can own and trade their favourite NBA moments. The platform minted and sold limited series of video clips from the sport’s most iconic moments. These clips are purchased and traded on the Top Shot platform in much the same way as collectible cards. In February 2021, a superfan purchased an NFT of a slam dunk by LeBron James for $208,000. Another example of NFT usage in sports is in contracting. In March 2021, Oleksandra Oliynykova, a professional tennis player, offered NFT buyers the opportunity to purchase lifetime rights to part of her right arm.
The opportunity for media organizations
Media organizations can benefit by creating cash flow through a new channel, using content they already have. Consumers benefit by having the option to purchase their favourite content, and as it is limited, these NFTs can be traded and may appreciate in value over time.
In doing so, media companies can unlock new value from content they already own, at minimal cost. Considering the millions of hours of content in their back catalogues that stretch back decades, the many NFT content types which can be used, and the ability to mint multiple NFTs from the same piece of content, the volume of NFTs which could be created is countless. As these NFTs are created by the original content owners (media companies), the NFTs are certified as genuine (and differ, therefore, from other examples of the same content online — example: a YouTube video of a basketball shot, which is not unique.)
Superfans can purchase and own their favourite content, which changes in value over time and can be treated as an investment. Given the scarcity of NFTs minted by content owners, and the fact that they are verified and traceable, the market can then drive prices for NFTs as more fans join the platform and seek to grow their NFT collections.
How Wipro can enable media organizations to leverage this opportunity
Our clients partner with Wipro to realize all aspects of their e-commerce ambitions. In this case, Wipro can support clients through the design, build and run of NFT content trading platforms. This includes, but is not limited to:
- Digital archive management and digital content identification
- Minting of NFTs
- Design, build and implementation of an NFT trading marketplace
- NFT issuance
- Enabling the customer journey from registration to purchase and ownership, including account management and customer support activities
- Fraud monitoring
- Data, analytics and business insights
Should media companies already have an NFT trading platform, Wipro’s e-commerce marketplace management team provides the operational capacity to continuously run this on a managed services basis.
Wipro’s e-commerce team supports the design and build process with a full-service digital program, including the provision of service design consultancy, UX and UI designers and platform development teams. Our project teams use the latest design thinking, agile product development methods and fully leverage remote working tools to deliver from around the world. Further, our digital program teams are involved in the project governance, management, and stakeholder communication from the beginning.
Wipro’s e-commerce operations team supports the daily operations of NFT marketplaces on a managed service basis. Our operations capabilities leverage our skilled people, vast process experience and latest technologies to continuously improve the end user’s experience. Further, our clients receive proactive engagement on continuous project management issues such as performance, communications, and idea generation.
Our managed services structure benefits clients in three ways:
- De-risks client investments by allowing quick access to the skills and expertise required, outsourcing of non-core activities.
- Reduced time to market with access to readily-available skills and tools.
- Improved profitability through continuous product improvement and cost optimization.
For more information, visit https://www.wipro.com/business-process/ecommerce-operations-management/
For a conversation on how we can help you harness the NFT opportunity, connect with us.