Nonfungible tokens have proven to be successful across a number of industries. From gaming to high-end luxury fashion, NFT use cases have demonstrated the importance of creating lasting connections between a company or a brand and its users/customers.
As such, it shouldn’t come as a surprise that the billion-dollar event-ticketing industry is on its way to being disrupted by nonfungible tokens. Specifically, the online event-ticketing sector — which is expected to reach $60 billion by 2026 — will likely see an increase in NFT ticket platforms and marketplaces that issue virtual tickets across a blockchain network.
According to Katz, the initial premise behind NFT ticketing platforms is to redirect money from third-party ticket sellers back to artists. He explained that NFT tickets can provide ongoing royalties to stakeholders, artists and event organizers: “The artist take is 95% primary and 5% secondary, currently. But when YellowHeart secondary opens in Q2, artists will be able to set their own secondary rate and keep up to 100% of revenue flow.”
Echoing Katz, Mort commented that Get Protocol’s white-label ticketing product consists of a mobile application, event dashboard, ticket webshops and other supplementary features. Mort explained that these elements help eradicate ticket scalping while giving event organizers full control over their secondary market ticket sales: “This ensures that event organizers rightfully make more revenue for their event ticket sales while keeping a direct connection between artist and all fans that would previously have been lost to external platforms.”
NFT tickets create lasting engagement between fans and artists
In addition to giving back to artists and event organizers, Katz mentioned that NFT tickets contain everlasting utility. For example, Katz shared that the Kings of Leon’s tokenized NFT album generated close to $1.45 million during the first five days of sales on OpenSea. Part of this release contained VIP fan experiences, band meet-and-greets, exclusive tour merchandise and more.
Will centralized ticket providers hamper innovation?
Gallo further explained that the NFL’s NFT marketplace is powered by global ticketing giant Ticketmaster. Despite this being the case, Katz mentioned that a number of artists have come to YellowHeart to launch NFT tickets but have had difficulty due to companies like Ticketmaster vetoing the notion by not offering NFT support at affiliated concert venues. “Artists want to reap the upsides here, but incumbents have forced them to stick with a centralized ticketing model. I’ve had roughly 10 to 20 acts during 2021 wanting to tour through YellowHeart, but Ticketmaster or Live Nation shut them down,” said Katz.
The Metaverse will push NFT tickets forward
Challenges aside, NFT tickets will likely gain popularity in 2022 with the rise of the Metaverse. For instance, NFTs could be a way for the music industry to boost revenues that have been lost since the start of the COVID-19 pandemic.
For example, Fitzpatrick explained that Animal Concerts allows users to purchase tickets in the Metaverse with the company’s token, ANML. This gives users full access to Metaverse concerts in familiar ecosystems like Decentraland and The Sandbox. Next, the company plans to build out its own Metaverse concert venue. Animal Concerts recently announced a partnership with South Korean unicorn Kakao’s Klaytn network to increase its exposure to the Korean entertainment industry.
Besides, with the rise of the Metaverse in 2022, NFT tickets are anticipated to become more popular. NFTs, for example, could help the music industry recoup revenue that has been lost since the COVID-19 outbreak began.
Animal Concerts, for example, allows customers to buy tickets in the Metaverse using the company’s token, ANML. Users will have full access to Metaverse concerts in familiar ecosystems like as Decentraland and The Sandbox as a result of this. The corporation then intends to construct its own Metaverse performance venue. Animal Concerts has announced a relationship with the Klaytn network of South Korean unicorn Kakao to expand its reach in the Korean entertainment sector.