NFTs Represent A New Business Option For Licensing

During the latest edition of the Brand & Licensing Innovation Summit (B&LIS) held last November in New York, licensing industry executives indicated that they expect NFTs to gain greater relevance in the live events arena. Accounts say that they are no longer just a source of income and are also becoming a component of marketing strategies. For experts, this change is not surprising, since the price of NFTs has dropped significantly, and therefore owners and licensees have to find new applications for these digital assets.

According to experts who have participated in past B&LIS, one of the strategies we will see more in the coming months is to extend the value of NFTs to the consumer beyond assets, linking it to a physical product or an experience in life. Along these lines, Metaverse developer Sandbox US will offer a series of concerts in 2023 whose tickets will be distributed as NFTs, an initiative that could also be transferred to conventions or other events. Overall, expectations point to the value of NFTs reaching $35 billion in 2022, thanks mainly to an increase in units sold, compared to the $25 billion registered in 2021 and $94.9 million in 2020. represents.

While there are still NFTs that sell for high prices (a single NFT from the Bor Ape Yacht Club collection can fetch $100,000), owners of these digital assets have to find new ways to exploit them, and that’s where licensing becomes an issue. may play a relevant role. It is true that there is an initial value of NFTs reporting direct start-up income, but entering the world of licensing expands the possibilities for exploitation from licensed products to a particular NFT or collection of NFTs and all marketing involved. Will happen. The publicity that will follow, which will also help build a brand image.

Thus, it is clear that events, content, and consumer products will be at the heart of the NFT business going forward, and this includes everything from incorporating NFTs into video games to incorporating them into fashion collaborations. Furthermore, in the world of licensing, we are already seeing how companies are betting on NFTs and, for example, DaPlaneta Entertainment recently added MetaGuardians to its portfolio and has already released two Rebels. They’ve launched the NFT collection Sanrio launched last summer with the NFT experience. Hello Kitty and Hot Wheels recently launched the Mattel NFT Marketplace. And surely we will see more such examples in the coming months.