How will Web3 change the sports industry, music industry, and fashion industry

Summary

Web3 provides new business and revenue-sharing models for the entertainment industry.

As the popularity of Web3 continues to grow, many artists, teams, brands, and designers are discovering new ways to interact with fans.

Meanwhile, musicians, athletes, and designers are also exploring more ways to monetize their skills.

Introduction

Web3 refers to the next generation of the internet that relies on blockchain technology. Its decentralization allows users to better control their data. Since the concept first appeared in 2014, the adoption rate of Web3 has surged. It is estimated that by 2026, approximately 2 billion people worldwide will spend at least one hour daily in the metaverse socializing, working, shopping, or attending school.

Many brands, individuals, and teams have found innovative opportunities within it. It not only enables more novel ways to interact with fans but also allows them to monetize their skills more fairly without intermediaries.

Why are brands rushing in?

Built on blockchain, Web3 offers users greater transparency, reliability, and trustlessness compared to Web2x. It also allows people to have immutable ownership of digital assets in the form of non-fungible tokens(NFT). This gives brands the opportunity to connect real-life experiences and products with digital assets owned by their communities.

For example, Hublot’s limited edition series includes 13 watches and 13 corresponding NFTs; and Decentraland’s metaverse music festival featured performances by world-renowned artists Soulja Boy and Ozzy Osbourne as virtual characters.

Web3 enables brands and individuals to interact with fans in unprecedented ways. Three industries—music, fashion, and sports—have already leveraged Web3 and blockchain technology to create carefully designed experiences and products.

Web3 in the Music Industry

Over the past twenty years, the music industry has developed rapidly—from using portable CD players to listening to millions of songs on mobile devices. Web3 takes this further, offering musicians new opportunities to interact with fans, protect their intellectual property(IP), and monetize their works.

Intellectual property law and ownership are the foundation of the music industry, with contracts and documents clearly defining who can take a share of the $26 billion global music market.

Web3 is utilizing blockchain technology to create secure, transparent, and immutable records of ownership and royalty rights for music creators and rights holders, thereby influencing the legal landscape of the music industry. Consequently, Web3 allows artists and other stakeholders to achieve fairer revenue distribution and more自由的管理音乐作品。

A Web3 music platform specializes in issuing and selling instrumental tracks, where songwriters can turn vocal parts into NFTs. Owners of these NFTs can obtain intellectual property rights related to the music they purchased, opening new avenues for musicians and creators to develop open-source music.

This also gives musicians the chance to bypass intermediaries like record labels or streaming platforms, which often take most of the revenue. With Web3, artists can create self-controlled income streams through tokenization and fan engagement at various stages of their careers.

Web3 in Sports

Similar to the music industry, Web3 offers teams, athletes, and fans many unprecedented interaction opportunities. This includes NFT-based digital fantasy sports games using game cards.

For example, an NFT platform digitizes football, baseball, and basketball player cards, combining Web3 with sports trading cards, allowing users to create their own fantasy teams. Players can also submit lineups to participate in global tournaments and compete with each other, providing a new way for fans to connect and communicate. This enables fans to personalize their virtual fantasy competitions on platforms supported by sports stars.

This connection with fans and the enhancement of community awareness are just the beginning. Web3 could further transform the sports industry by increasing transparency, ownership, and autonomy. This includes using smart contracts for sports event ticketing and signing sponsorship agreements on the blockchain to ensure transparency and immutability.

Web3 in Fashion

The transparency of Web3 enables fashion brands to create new business models, implement anti-counterfeiting measures, and engage with customers and communities through personalized experiences. Many brands are now launching their Web3 strategies, shifting focus from short-term financial gains to long-term alignment with the values and needs of NFT holders.

Louis Vuitton, Paco Rabanne(, Gucci, and Prada have all released their own NFT series. Some of these fashion NFT projects are also issued alongside limited editions or vintage collections of physical goods.

Indeed, Gucci’s collaboration with the SUPERGUCCI NFT collection has been highly praised, leading the Web3 company behind it to raise over $38 million and reach agreements with other luxury brands seeking to launch their own collections.

High-end jewelry brand Tiffany is a prime example of bridging physical products with the NFT realm. Owners of popular NFTs like CryptoPunks have rights to their NFTs and can monetize these assets. Tiffany took this opportunity to design custom NFTIFF pendants, transforming each owner’s specific NFT into a physical piece of jewelry.

Web3 also addresses one of the biggest challenges in fashion: supply chain transparency and traceability. With Web3, every step of the supply chain can be recorded on an tamper-proof blockchain ledger, ensuring secure protection and decentralized tracking from production to point of sale. This immutability is key to solving issues like human rights violations and counterfeiting.

By increasing transparency and traceability, it helps prevent common problems in the fashion industry such as human rights abuses, environmental pollution, and other unethical practices. However, this depends on everyone involved in the supply chain being able and willing to input data into the blockchain.

Limitations

While Web3 can bring positive changes to the industries mentioned above, it also faces challenges and limitations. Implementing Web3 and blockchain technology requires a certain level of technical expertise, which exceeds the capabilities of many musicians, athletes, fashion designers, and even their teams.

Additionally, hiring Web3 developers is costly. This can create high barriers to entry, making it difficult for smaller brands and individuals with limited budgets to fully benefit from Web3.

Adoption of Web3 is also challenging because most people have not yet been exposed to Web3. This presents two main issues: first, brands and individuals wanting to launch Web3 projects need to evaluate whether the potential revenue justifies the costs; second, the traceability of the supply chain will depend on whether everyone involved in design and manufacturing can and is willing to use the systems that track the process on-chain from the start.

Conclusion

Web3 has the potential to revolutionize the fashion, music, and sports industries in multiple ways. It not only allows fans and communities to interact directly with their favorite brands and personalities but also offers unprecedented supply chain transparency and immutable enforcement of intellectual property rights.

Overall, the potential of Web3 in fashion, music, and sports is enormous, and we are only just beginning to see its possibilities. As Web3 continues to evolve, we can look forward to more exciting innovations that will brighten the future of these industries. )$CTSI **$TANSSI **