Pussy Riot’s ‘Matriarchy Now’ NFT drops in Rolling Stone collab

The metaverse in smart TVs, Pudgy Penguins 2023 outlook, plus more top stories

🎥 Metaproof Media, Entertainment, IP

Hey friends, this is Sophia from 🎥 Metaproof Media, Entertainment, IP, the weekly newsletter where we keep you informed on how the metaverse and web3 are changing the media, entertainment, and IP industry.

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💌 A quick thanks to our friends…

Shout out to this week’s sponsor CyberBrokers. A project with futuristic, cyberpunk art and immersive storytelling, CyberBrokers tells an exciting story that takes users through the world of the Paradigm Lost. Create, collect, game, and experience in this journey that brings the metaverse to life. Expand your reality today and go explore the Paradigm Lost. Check them out here!

📲 By the numbers

How can Disney benefit from the metaverse? A curious possibility: Disneyland remains a metaverse experience similar to Roblox, a “Disneyland metaverse” where a digital world is dedicated to franchises like Star Wars, Marvel, and more. Here are some numbers: (Source)

  • Disney celebrates its 100th anniversary in 2023.

  • In 2018, Disneyland accounted for about 40% of its total revenue.

  • The metaverse industry generated $22.79B in 2021, with a forecasted CAGR of 39.8% from 2022 to 2030 and eventually becoming a $996B market - entertainment is among the leading sectors aiming to bloom in the space.

📫 News & trends

Russian anti-government punk collective Pussy Riot co-founder Nadya Tolokonnikova and artist Ellen von Unwerth have collaborated with Rolling Stone to publish MATRIARCHY NOW, an 11-part NFT series.

Tolokonnikova used cryptocurrency as a “revolutionary tool” to raise over $12M in the last year to support various causes such as reproductive rights and LGBTQ and female artist funding. The series of portraits explore art and sexuality, with a special "cover image" featuring the Rolling Stone logo being auctioned off; all proceeds will go to the reproductive rights charity portal LegalAbortion.Eth, which she co-founded with John Caldwell.

Tolokonnikova also launched the decentralized autonomous organization (DAO) UnicornDAO, which uses the same fundraising model to commission and acquire NFTs created by women, non-binary persons, and LGBTQ artists. The collection’s intention? Depict a world where women, men, and everyone else are on equal footing, and there’s inclusivity in the web3 community.

Cloud tech company Oorbit, which operates a metaverse platform, has tied up with LG Electronics to bring immersive games and experiences together and enable LG TV users to interact in the metaverse. Oorbit users, thanks to cloud streaming technology, will be able to enjoy high-fidelity interconnected virtual worlds as well as experiences, from virtual concerts to AI generative multiplayer games. LG’s endorsement of the metaverse is noteworthy, reports VentureBeat, in light of the abundance of metaverse skeptics out there and the metaverse getting a needed boost at CES 2023 where the electronics giant made the announcement.

Luxury fashion house Hermes will go to trial against artist Mason Rothschild over his Metabirkins NFTs, set to begin on January 30. In the case that could establish a legal precedent for future digital assets - and what artists can and cannot render virtually - both parties pushed for a summary judgment without a full trial but were denied the said motions. In the burgeoning web3 and digital goods space, the trial will raise questions and offer potential answers on the meaning of luxury handbags and properties in the digital world, how artwork is distinguished from luxury goods, and if brand trademarks for products, such as those protecting Birkin bags, extend into the digital landscape.

High-tech creativity and innovation are steering media and entertainment companies toward a new direction as they develop immersive technology solutions at scale to facilitate the future of XR socializing. Metaverse - a unified space integrating multiple virtual worlds on an interoperable platform - has and continues to connect audiences in shared virtual spaces via headsets and their respective or third-party virtual spaces as it incorporates AI, virtual augmented, and mixed reality (VR/AR/MR), the internet of things (IoT), and hand and eye tracking tools. VR theme parks, concerts, and VR gaming serve as important use cases, while Walt Disney, Fortnite, and a range of telecoms and network operators are making inroads in the media metaverse.

People can learn a thing or two from these brands that have omitted the word “NFT” altogether when discussing their foray into web3 - a surprisingly effective move. Reddit announced back in July 2022 the launch of its Collectible Avatars initiative, with enough success that it explored the idea of selling NFTs to its users further. Its initial announcement of the Collectible Avatars’ first run deliberately veered away from NFT mentions, saying “Our new Collectible Avatars storefront” instead. Its subsequent CryptoSnoos NFT drop did so well and this time had the word “NFT” all over it - a rather incredible strategy of slowly ingratiating the concept of digital assets to its user base.

Could the metaverse be the next big step in social media’s transformation? Social media on its own has evolved into a powerful platform, establishing large social communities online with millions of users in a short time. Incorporating the metaverse into social media will only increase or deepen the online community and ultimately introduce new ways of monetization. A metaverse social media platform is seen to offer more immersive experiences, fortify privacy protection, foster digital learning, and enhance the work and outcomes of marketers, to name a few key benefits.

It was a great aspirational symbol all right: the Crypto.com Arena, with a $700M naming rights deal catapulting a small cryptocurrency exchange from relative anonymity into a glorious global figure, formerly and often still known to fans as the Staples Center. During that time, arena owner AEG put the new partner on full display, with the crypto exchange filling the entertainment district with ads. More than a year later, most of Crypto.com Arena’s electrical signage remains missing despite the original June 2020 schedule for completion. The unrealized vision reminds of previous optimism around crypto - as well as the crypto winter that many believe still rages on.

Is 2023 the year the metaverse will finally start reaching mainstream audiences? One telltale sign: its widespread adoption by big-name consumer brands across verticals, including media and entertainment, traditional sports, fashion brands, and even toy companies. Experts predict metaverse integrations within the workplace, from using VR headsets for meetings and socials to bypassing the interactive limitations of apps like Slack. As traditional entertainment studios also fight to sustain subscribers, there’s a strong push to launch new IP on social media, such as animation studios distributing original IP on TikTok and YouTube.

The media, as it constantly changes due to emerging technologies shifting business models and consumer behaviors, need to build and strengthen digital trust with clients and customers. Business leaders, for one, should not confuse market fluctuations or bad actors with the potential benefits of digital assets and the technologies that power them. In a highly advanced landscape where booking a cinema ticket, for instance, comes with access to the wallet for a time-limited token containing payment details, there’s a learning curve to contend with. Early challenges are there, but web3 applications in the space are already occurring at a fast pace.

Korean ICT firm Lotte Data Communications is presenting at CES 2023 its “differentiated” metaverse technology. The final version of the Lotte Metaverse, according to its press release, integrates online and offline worlds, just like the “Ready Player One” movie. Purchases within the said metaverse can be used in the virtual space as well as delivered in the real world, and enabling the business model is an “immersive and realistic metaverse platform based on hyper-realistic content.” The Lotte Metaverse is also said to use cutting-edge tech such as 3D real-time rendering, live-action VR shooting, along with “deep-interactive” patents that enable users to realistically interact with objects or real-life characters in VR content for shopping, entertainment, and community experiences that strongly feel real and immersive.

The Pudgy Penguins opened 2022 with a falling out - “riots broke out in demand for a change in leadership” - and via an “extensive and slow” process the acquisition was made final on April 4. Key milestones that followed include its media platform Pudgy Media’s build out, two NFT NYC events, and the Pudgy Marketplace’s release. The year also saw the start of its soulbound implementations, airdropping the truePengu soulbound token to its community as well as releasing Pudgy GIFs. Pudgy Penguins commits to expanding into new markets in the “most seamless and effective” manner possible to onboard people into the web3 world.

NFTs are a new creative form of intellectual and artistic expression, aside from being a lucrative business opportunity. The ability to create and sell exclusive, limited content via collectible digital assets has attracted great interest from industries ranging from fashion and sports to creative design and gaming. Key to successfully commercializing an NFT is securing the right IP protection for it. One challenge is if commercializing, exploiting, and protecting NFTs has to be done in various jurisdictions and at the same time - particularly in markets such as China, where there are unique challenges for a foreign NFT creator.

BasedHeads NFT teaser video

Trashland awaits and Karma can’t wait to meet you - and so new NFT project BasedHeads teases on Twitter. The brainchild of web3 content creator Robin Schmidt (aka SuperMassive), BasedHeads is conceived in his content studio BasedAF to take the story of the metaverse to new heights through “jawdropping stunts and challenges” rivaling top YouTube creators. As of January 5, its NFT supply sits at 10,000 at a price of 0.08 ETH for allowlist and 0.09 ETH for the public, according to the official BasedAF Twitter account.

In India, a movie in Kannada language is launching on the metaverse. Interality, an engine for AR & VR worlds, announced the release of “Made in Bengaluru,” written and directed by Pradeep Sastry and following the journey of three middle-class boys who ventured into the startup world. The promise of the metaverse has penetrated deep into the world of cinema, where users can choose from multiple entertainment venues, events, and services based on their individual preferences. Viewers can also interact with each other and engage in new and unfamiliar ways, yet in acutely familiar surroundings.

Web3 is giving rise to new incentive structures for artists as entertainers as well as fans, where they can be an active participant in the creation process. With NFTs, fans become long-term investors in the entertainer and can enjoy exponential growth in their NFT purchase, which is aligned with the artist’s popularity. This can particularly benefit artists or content believed to be underrated or trusted to rise to further fame or acclaim, as fans are betting on their potential when they buy their NFTs. Web3 is also poised to create new monetization methods, transform ownership structures, and improve security and user authentication in digital media and entertainment.

Billionaire Frank McCourt is building the decentralized social media initiative Project Liberty, with current plans to launch it as a parachain likely to evolve into something bigger. He has committed $150M to the social ecosystem, which will have its native token and a three-year roadmap. Snapmuse.io, on the other hand, seeks to rewrite the rules of engagement for its consumers and fans, who can become partners with their favorite content creator channels by collecting NFTs and in turn gain discounted SMX tokens based on the monthly ad revenue of the channel. Creators can “mint” part of their channels, building stronger communities and forging new alliances.

💸 Finance buzz

  • Web3 entertainment company Orange Comet is acquiring entertainment and gaming tech provider Mint State Labs, which helps creators easily build, distribute, and market blockchain-powered experiences. (Source)

  • Crypto exchange Kraken has announced its NFT marketplace beta testing. As a dedicated platform for NFTs, Kraken’s market will offer a range of more than 110 NFT collections with the highest trading volume. (Source)

🗣️ Quote of the week

“Today, there are opportunities to build new creative IP, to connect with audiences and community, or create a brand and product awareness or connect offline and online experiences to build engagement and drive revenue. Anthony Hopkins … [h]e dropped the NFTs after engaging with the community and building with Orange Comet for months. There was so much demand that the platform that he dropped them on, OpenSea, shut down. And then when it came back up, he sold them out in seven minutes. The NFTs depicted all of the iconic characters that he played throughout history. It was deeply connected to the career that we know him for.”

Joanna Popper, Chief Metaverse Officer at Creative Artists Agency (CAA)

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All content on this newsletter is for informational purposes only and does not aim to serve as or replace expert investment advice.

If you are a startup building in the metaverse / web3 ecosystem and are raising capital, please reach out to Sfermion. Sfermion is an investment firm focused on accelerating the emergence of the metaverse.

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