ENTERTAINMENT INDUSTRY CONTINUES TO SOUND OUT THE METAVERSE

As interest in the metaverse continues to mount, entertainment events, from music to sport, are increasingly taking place in the virtual space

WRITTEN BY: MARCUS LAW

the rise. The world’s biggest companies, such as Google, Apple, Meta and Microsoft, have each made significant metaverse investments. Meanwhile, according to McKinsey, in 2021, internet searches for the metaverse increased by 7,200%, and approximately 60% of consumers said they are excited about the transition of everyday activities, like shopping, dating, and working

Prompted by COVID-19 and the absence metaverse has made its presence felt in the music industry too. In April 2020, Epic Games’ battle-royale video game, Fortnite, grabbed the music industry’s attention when a lucrative virtual event starring an avatar of Travis Scott brought in 27.7 million unique players, while a digital gig by Lil Nas X on the Roblox platform attracted an astonishing 33 million viewers. Research conducted by Mastercard last year found that almost a quarter (23%) of people aged 16-24 have already attended a metaverse

STAN SAKHARCHUK CO-FOUNDER AND CEO, INTEREXY

gig. A further step into this new domain was the 2022 MTV Video Music Awards (VMAs) debut of a new category for Best Metaverse Performance.

Entering the metaverse Coined in 1992 by American science-fiction writer Neal Stephenson in his dystopian novel Snow Crash, the metaverse is a fullyrealised digital space existing beyond the physical space in which we live.

“The metaverse is sometimes described as a unified space that combines multiple virtual worlds into a single, interoperable location that can be easily accessed by many users,” according to Stan Sakharchuk, Co-Founder and CEO of software company Interexy. “The metaverse is an entertainment experience by itself, providing many opportunities for users to interact with virtual items and access a variety of events. The fact that it can help users feel like they are in the physical world and engage with unfamiliar, yet acutely familiar, surroundings is entertaining. That’s why providers and developers should consider these capabilities to deliver content that users value and like.”

In October 2021, Facebook rebranded itself Meta to capitalise on the emerging concept

of the metaverse.

Since then, from gaming to sports to music, brands like high-fashion giants Gucci, Louis Vuitton and Dolce & Gabbana, alongside the likes of Nike, Adidas and Coca-Cola, have embraced the concept of the metaverse.

The potential of the metaverse is clear

According to a report from the Capgemini Research Institute, while meaningful interaction in the metaverse is currently only possible in relatively small groups, the potential for mass interaction is clear.

While the strongest wave of interest for the metaverse comes from tech enthusiasts, who account for only 4% of Capgemini’s survey population, the research also noted that 93% of adult consumers surveyed are metaverse-curious.

“The way people use the internet is going to change. The metaverse can be understood as a network of different platforms – such as Horizon Workrooms, The Sandbox or Roblox – where we will store, work, communicate, play and educate ourselves in the future,” explains Matt Redman, UK Strategy lead at global business transformation company Valtech. “All this is made possible by digital avatars that we can use, enabled by virtual reality (VR) and augmented reality (AR) technologies, to interact with other users and enjoy immersive experiences.”

Last year’s FIFA World Cup could be described as the first Web 3.0 World

Cup, with fans in the stadium able to view live information from players’ speed to heatmaps and possession percentage through the FIFA+ app. Meanwhile, the North American National Basketball Association (NBA), in collaboration with Niantic, the maker of Pokémon GO, has announced the launch of NBA All-World, which will overlay a video-game environment on a real-world map, using real-world basketball courts for virtual games and allowing players to choose any location.

Metaverse brings with it rights concerns

Well-known brands such as Nike, Tommy Hilfiger, Gucci, IWC, Dolce & Gabbana and Tiffany & Co. are becoming increasingly involved in digital fashion and experimenting with digital collectables or NFTs (non-fungible tokens). Nevertheless, there can be a natural tension between personality rights and copyright when it comes to digital avatars

Quarter of people to spend hour a day in the metaverse

By 2026, 25% of people will spend at least one hour a day in the metaverse for work, shopping, education, social and/or entertainment, according to Gartner, Inc.

“Vendors are already building ways for users to replicate their lives in digital worlds,” said Marty Resnick, Research Vice President at Gartner.

“From attending virtual classrooms to buying digital land and constructing virtual homes, certain activities are currently being conducted in separate environments. Eventually, they will take place in a single environment – the metaverse – with multiple destinations across technologies and experiences.”