Ownership has always been a fundamental concept in the entertainment industry, particularly in gaming and digital products. However, the role of blockchain technology and non-fungible tokens (NFTs) in establishing ownership rights and revenue generation remains a topic of debate among industry executives.
At the SEG3 conference in Los Angeles, participants acknowledged the importance of ownership rights and revenue generation but expressed mixed opinions on the role of blockchain. Craig Laliberte, Director of Business Development at Epic Games, showcased the capabilities of Unreal Engine and discussed the company’s digital marketplace FAB. Laliberte clarified that FAB does not host NFTs or blockchain-based assets, instead focusing on standard purchases.
While blockchain technology has found advocates in various sectors, entertainment studios appear reluctant to embrace it fully. NFTs, in particular, have garnered negative attention in the gaming industry due to concerns about scams and money grabs. Even though Epic Games raised $2 billion in 2022 to build the metaverse, their ambitions did not include NFTs.
Despite this skepticism towards NFTs, Epic Games does allow blockchain-based games on its Epic Game Store. The Solana ecosystem, including developers behind the highly anticipated Star Atlas, has found a viable alternative to platforms like Steam in the Epic Game Store.
When asked about owning assets without blockchain technology, Laliberte emphasized that gamers are not limited to Epic Games’ technology. He stated that assets purchased by gamers are theirs to take wherever they want, indicating that ownership is not reliant on a specific platform or technology.
In another panel discussion, Alvaro Velilla, Senior VP of New Business at Universal Music Group, expressed that there is no need to adopt blockchain technology if it does not serve a particular need or provide assistance. Some attendees echoed this sentiment, citing risk aversion and the lack of necessity as reasons for not engaging with blockchain technology.
However, proponents of blockchain believe that it is essential for establishing true ownership. They argue that without a decentralized ledger like the blockchain, ownership cannot be authenticated in a real and substantial way. The crypto faithful maintain that blockchain is necessary to prove ownership and prevent unauthorized use or duplication of assets.
The debate around ownership and the use of blockchain technology in the entertainment industry continues. While some executives are skeptical about blockchain’s role, others view it as a fundamental tool for establishing genuine ownership in the digital age. The ultimate resolution may depend on industry dynamics, consumer preferences, and the development of alternative technologies.