How NFTs fit into the game creator economy
By Santiago Portela, CEO of FITCHIN
NFTs have paved the way for new forms of engagement between fans, artists and creators. According to a report by Fact.MR, the global NFT market is currently worth around $34 billion and is expected to continue growing. The same principles of the creator economy that enable new kinds of engagement and monetization for artists can benefit another growing group: esports streamers.
CURRENT STATE OF THE CREATOR ECONOMY
Data from LinkTree shows that there are over 500 million “passion economy” users, defined as “people who actively engage in activity to monetize individuality and non-commoditized skills. supported by digital platforms”. There are over 200 million “creators”, defined as “individuals who use their influence, creativity or skills to aggregate and monetize their audience”. Forbes says the industry is expected to grow to over $100 billion.
To date, the creator economy within the blockchain has been widely associated with celebrities and artists frequently launching social tokens to monetize their communities. What we haven’t seen much is game streamers launching their own tokens.
CURRENT STATE OF STREAMER REVENUES
Streaming has been the foundation of the esports industry as a whole, and it’s a lucrative business. With hundreds of millions of hours of gameplay streamed through Twitch, most revenue historically has come from traditional paid sponsorships and advertising. According to Newzoo, streamers generate an estimated $2.3 billion in revenue with over 140 million monthly viewers, which is expected to grow 14% annually over the next three years.
NEW OPPORTUNITIES FOR STREAMERS
Streamers are an overlooked category for the new creator economy. NFTs are a social currency that can provide streamers with new revenue streams in addition to building loyalty and community. NFTs can be used to diversify a streamer’s income, allowing them to sell NFTs to unlock secure content. They can also be used to allow subscribers to enjoy a “VIP” experience such as a tournament, or simply to further engage with a team, brand or product. Setting up subscription experiences also becomes possible, providing a way to engage audiences in more exclusive and original ways, while helping to foster community with like-minded people or esports fans with a specific common interest.
LOYALTY IN THE DIGITAL AGE
Beyond revenue, NFTs unlock another key value driver for streamers: loyalty. Loyalty is key as esports streamers seek to build and maintain their web3 communities and build authentic participation. In addition to leveraging NFTs to engage audiences in new ways that strengthen fan relationships, the new creator economy is brimming with rich networking and relationship-building opportunities that can further foster loyalty within the community. at large. Esports streamers, for example, can build loyalty and increase revenue by partnering with Web3 developers, adding viable value for audiences and the streamers themselves.
Ultimately, exclusivity drives identification and a sense of place, and through a combination of creative engagement with fans and strategic partnerships with web3 players, esports is ripe for exciting innovation in this new technological era.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.