(photo credit:pixels)

For more than a year, major media and entertainment businesses have been indicating their plans to enter the NFT industry. This intrusion is expected to alter how most customers view NFTs.

Many people currently believe that NFTs are pricey photographs or, worse still, a fraud or pyramid scheme, as demonstrated by recent statements made by Bill Gates.

The effects of what is being referred to as "crypto winter" have not helped this perception: NFT sales have decreased in value in response to the recent fall in the price of cryptocurrencies, which makes sense given that many marketplaces were based on those prices. One exception to the pattern is the world's largest trading card company, Panini, which exclusively accepts payments in fiat money and has not noticed a drop in USD sales, according to CryptoSlam.

Although it is true that the market for collectible NFT is declining, the reduction is not as noticeable when compared to the overall number of transactions. In contrast to the 72 percent decline in sales value, the number of transactions overall fell by 11 percent from May to June.

The public's perception of NFTs will change as a result of all of this, expanding the range of potential applications for the technology. According to VIP+'s "Web3 Demystified" special report, an NFT is essentially a blockchain ledger with ownership information. The person will decide how to use this, and non-image NFTs are currently becoming more well-known.

Event ticketing is an excellent illustration of how NFTs may be utilized to enhance the functionality of an existing idea. The existing ticketing sector, lead by Live Nation Entertainment's Ticketmaster, is attempting to expand into the new space, as is the case with practically every aspect of NFTs, while NFT upstarts like YellowHeart, looking to disrupt established industries, build from the ground up.

The market adopts various strategies depending on the idea of old vs new ticketers. In order to provide commemorative ticket stubs for spectators of sporting events, concerts, and festivals, Ticketmaster and Live Nation have thus far concentrated on after-event functionality. While some of the festival NFTs provided real-world chances, such as entry to a VIP lounge at New York's Governors Ball, none of these NFTs serve the same purpose as a genuine ticket, giving owners admission to the event itself.

What YellowHeart provides is an entirely unique experience. The ticket is a digital stub, an NFT, and a direct entrance to performances and events. Since there can only be one NFT per event, NFT ticketing is able to weed out bad actors and remove counterfeit tickets. An NFT is simply a record of ownership recorded on the blockchain.

Scalpers, who have long been an annoyance to event attendees, will also see their profits decline as a result of using NFTs for ticketing. The first is the integration of smart contract technology into tickets, which means that a portion of any resale—likely about 10%—will go to the performer and/or the venue. The second is the possibility to set resale volume restrictions within the NFT ticket market, reducing the profit margins for scalpers.

(photo credit:pixabay)

NFT tickets also hold out the possibility of providing owners and event organizers with further utility. NFT ticket stubs can help establish a continuing relationship with the owner, according to Live Nation President Michael Rapino, who made the observation during the company's Q1 2022 earnings call (as well as providing more upsell opportunities).

VIP+ contacted a number of entertainment companies involved in the NFT ticketing market who shared the opinions of the locals. According to Andrew Machado, SVP of Digital Product & Design Excellence at MGM Resorts International, NFTs will serve to offer visitors engaging experiences both before and after events. Justin Levy, VP of Marketing at Tao Group Hospitality, stated that NFT tickets provide up new opportunities for brand visibility by extending the event experience beyond just the event night.

NFT ticketing also enables additional continuous utility, such as benefits and awards for frequent visits to venues or sporting events, thanks to blockchain technology that makes it apparent who the end users and event participants are. It gives a different platform for reengaging customers with promotions or food and drink credits, which were previously solely given via email. NFT tickets can also grant access to special event content, ensuring that attendees continue to interact beyond the event.

NFT ticketing, in summary, promises to make the technology useful and applicable. As the idea spreads, it will assist in changing consumers' perceptions of NFTs from pricey, possibly fraudulent works of digital art to technology that can improve various parts of their life. The World Cup will be held in North America four years from now; anticipate that events like that will use this ticketing and help popularize the new era of NFTs.