Why Are NFTs Useful For Fans?

July 4, 2022 by Mimi Phan

NFTs are changing the face of the entertainment industry and popular culture at large. They didn’t even exist until 2014 but, with the proliferation of blockchain technology and Web 3.0, NFTs have captured the public consciousness and are now having a big effect on how art is both made and consumed.

So, why are NFTs useful for fans? The ways artists and their fans engage with each other has been transformed dramatically by the arrival of this new technology. Fans of artists have always been fascinated by the creative process and many have longed for a way to get more involved. Now NFTs are making it possible for fans to have a closer connection than ever before with their favorite artists.

The internet massively increased the ability for artists and fans to connect. Since the advent of Web 2.0, third party platforms like Facebook (now Meta), Twitter, and YouTube have enabled this connection. However, the arrival of Web 3.0, blockchain technology and NFTs has taken the relationship between fans and artists to a whole new level!

Digital Assets In Entertainment

The entertainment industry has played a big part in the promotion and development of digital assets. Major entertainment industry figures such as Jamie Foxx, Ashton Kutcher, and Lionel Messi have been big proponents of blockchain technology and digital assets. Rappers such as Nas, Ghostface Killah, and The Game have all made high-profile investments in crypto companies.

NFTs In The Entertainment Industry

NFTs have taken the entertainment industry by storm, with entertainers and artists embracing NFTs and are using them for a variety of purposes. Artists, filmmakers, musicians, actors, and creators of various types have led the way when it comes to innovations in the NFT space.

What Are NFTs Good For?

NFTs benefit the entertainment industry and artists in several ways, including:

• Helping to build and develop fan bases
• Creating a fan culture and tight-knit fan community
• Enabling fans to promote artists by displaying their NFTs on social media
• Enabling artists to communicate and connect with fans
• Financing future projects with sales of NFTs
• Increasing brand visibility
• Allowing artists to reward their most passionate fans.

How NFTs Can Increase Fan Engagement

Part of the NFT value to fans is that it increases engagement. NFTs allow fans to become more involved with their favorite artists, to connect with fellow fans and participate in a fan community, to help finance future projects, and even to have their own input into their favorite artists’ creative process.

NFTs Are Disrupting Collector Culture

A big part of fan culture is owning collectibles relating to your favorite artists. The vast majority of collectibles are fungible objects such as signed photos, clothing, and posters. The fact that NFTs are non-fungible means they can be owned exclusively. Fans can demonstrate their allegiance to an artist by owning a totally unique collectible in the form of an NFT. 

Also, because NFTs are unique, their value can be profoundly impacted by market demand. The price of an NFT can vastly increase or decrease if an artist becomes more or less successful and relevant. All in all, this means that buying the right NFT can end up making a person a massive profit if they sell it at a higher price.

Why Are NFTs Useful For Fans?

Here are six more ways that NFTs are useful for fans…

1. NFTs Enabling The Creation Of More Original Art

NFT sales are bringing revenue to artists that they are using to make more original art. Projects that might be difficult to fund in more traditional ways are being funded with the proceeds from NFT sales.

This is great for fans, as it means that artists can make exactly the type of art that they and their fans want without having to bow to middlemen such as mainstream movie studios and record labels.

2. NFTs Enable Fans To Patronize The Art They Love

Art can be sold in the form of an NFT. Cult-hero filmmaker Kevin Smith planned to auction his new film Killroy was Here as an NFT, meaning that the buyer could own the movie and do whatever they want with it. He ended up releasing it directly as a 5,555 NFTs rather than putting it to auction, but the concept and financial result is similar.

Kind of like in ancient times when rich patrons would pay directly for art that they would hang in their private collections, NFTs are making it possible for people to request and pay for specific art that they can choose to keep for themselves or share with others.

3. NFTs Can Make Fans A Lot Of Money

The market value of NFTs can go up and down dramatically depending on factors such as the popularity and relevance of the artist. If an NFT goes up in value, a fan can sell it and potentially make a decent to oh-wow-this-is-life-changing profit.

4. NFTs Allow Fans To Signal Their Love For An Artist

Much like football jerseys, NFTs can act as badges of allegiance to communities and fan groups. They allow fans to signal to other like-minded people and to make friends and connections both online and in the physical world.

5. NFTs Make It Easier For Fans To Connect With Each Other

People who buy NFTs often get special access to online communities and roped-off regions of the metaverse where they can communicate with other fans who have also bought NFTs. This makes it easier for diehard fans to meet and connect with each other.

6. NFTs Make It Possible For Fans To Engage More Closely With The Artists They Love

Owners of NFTs are often granted more intimate access to the artist. This can come in the form of online communication, passes for special events, backstage access, and even the opportunity to have input in the creative process.

Thanks to the explosion of interest in NFTs and their adoption by leading lights of all areas of the entertainment industry, it really has never been a better time to be a fan.

Featured image by SplitShire on Pixabay