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By Santiago Portela, CEO of FITCHIN
NFTs have paved the way for novel forms of engagement between fans, artists, and creators. According to a report from Fact.MR, the global NFT market is currently worth an estimated $34 billion, and it’s expected to continue to grow. The same principles of the creator economy that allow for new kinds of engagement and monetization for artists can benefit another growing group: esports streamers.
CURRENT STATE OF THE CREATOR ECONOMY
Data from LinkTree shows that there are over 500 million ‘passion economy’ users, defined as “people who actively engage in activity to monetize individuality and non-commoditized skills supported by digital platforms”. There are over 200 million ‘creators,’ defined as “individuals who use their influence, creativity or skills to aggregate and monetize their audience.” Forbes states that the industry is expected to grow to over $100 billion.
To date, the creator economy within blockchain has largely been associated with celebrities and artists who frequently launch social tokens to monetize their communities. What we have not seen much of is gaming streamers launching their own tokens.
CURRENT STATE OF REVENUE FOR STREAMERS
Streaming has been the foundation of the esports industry as a whole, and it is a lucrative endeavor. With hundreds of millions of hours of gaming streamed via Twitch, most of the revenue has historically come from traditional paid sponsorships and advertising. According to Newzoo, streamers bring in an estimated $2.3 billion in revenue with over 140 million monthly viewers, projected to grow by 14% annually over the next three years.
NEW OPPORTUNITIES FOR STREAMERS
Streamers are an overlooked category for the new creator economy. NFTs are a social currency that can provide streamers with new revenue streams in addition to building loyalty and community. NFTs can be utilized to diversify a streamer’s revenue, allowing them to sell NFTs to unlock gated content. They can also be used to allow followers to enjoy a “VIP” experience such as a tournament, or simply become more engaged with a team, brand, or product. Setting up subscription experiences also becomes possible, providing a way to engage audiences in more exclusive and original ways, while also helping to foster community with like-minded individuals or those esports fans with specific shared interest.
BUILDING LOYALTY IN THE DIGITAL AGE
Beyond revenue, NFTs unlock another key value driver for streamers: loyalty. Loyalty is critical as esports streamers look to build and sustain their communities in Web3 and bolster authentic participation. In addition to leveraging NFTs to engage audiences in new ways that strengthen fan relationships, the new creator economy is full of rich opportunities for networking and relationship building that can further foster loyalty among the broader community. Esports streamers, for example, can build loyalty and increase revenues by partnering with Web3 developers, adding viable value for both audiences and the streamers themselves.
In the end, exclusivity generates identification and a sense of belonging, and through a combination of creative engagement with fans and strategic partnerships with Web3 players, esports is ripe for exciting innovation in this new technological era.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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