Over the last few months, we discussed how technology is disrupting many things. This is opening the door for Web 3.0 since it is a restructuring of anything digital.
Tyler Perry is a well known filmmaker. He is one who is paying attention to technology and how it is altering things.
Essentially, we are going to see massive amounts of capital that is affected. Web 3.0 offers so much potential because it can gather a great deal of that value. While there are drawbacks to decentralization, when it comes to ownership, we can see how this is a game changer.
Centralized entities, especially the silos that control the Internet, are at risk. I firmly believe there will be some shakeup there. The same is true for the media industry, which is also facing its own challenges.
Tyler Perry is one who realizes this.
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Tyler Perry Puts $800 Million Studio Expansion On Hold
Perry's move was not because of Web 3.0. It is, however, a symbol of what is taking place.
The decision by the filmmaker to delay expansion plans was due to the power of OpenAi's Sora. It drove home the point that technology is gaining the ability to produce video content that is starting to rival humans. While it still not at parity, it is enough to make Perry start to question.
He is astute in his observation.
What will Sora 3.0 or 4.0 look like? This is the question that all in the industry should be asking.
Web 3.0 Can Capture This
As stated in the past, the value in Web 3.0 is the fact that the data is stored on a public blockchain. No permission is required to gain access and enter the community.
Here is where we see a fragmentation of the industry. In the past, whether traditional broadcast or social media, eyeballs were centrally located. The distribution channels were rather simple.
This is not the case when networks are abundant.
One of the things that Perry fears is the fact that AI is making it look like it will make it possible for software to create what is now done by humans. He even discusses the idea when revealing his decision and how it will affect jobs.
If this is true in general, then it certainly applies to Web 3.0.
So what happens when an individual who is well an expert at using prompts takes the technology to generate a feature length film? While this might not be the blockbuster of Hollywood, let us presume it is good enough for the masses.
Now that individual caters to a Web 3.0 community, and is able to generate $20K in revenues.
Again, this is not setting the world on fire. However, that is money that once went to Hollywood that no longer is. That said, it is not the most potent aspect to this scenario.
Multiply that situation times 10,000. Instead of one video, what happens when there are 10K? Or 100K? Or 1M?
We might end up with something that looks like this:
Web 3.0 could have built in audiences that creators consistently cater to. This is a completely different structure than what we are presently dealing with.
This is the power of the network-state. Suddenly, it adds a new form of identification which gives those who cater to that community an advantage.
Due to the size, and scope of coverage, it is impossible for Hollywood Studios, even small ones like what Tyler Perry has, to copy this.
Marketing is going to change completely.
Subscription Model
One idea that I think makes sense is the concept of combining all of this under a subscription model.
Netflix already does this, again adding centralized layers to the mix. What happens when the individuals are able to interact directly with a platform?
For example, we have an application with a Web 3.0 ecosystem. This offers the ability for content creators to provide monthly subscriptions. Most think of this as a Substack style of set up but why not apply it to video.
Now take the content creator, pumping out AI generated video that are of high quality and with stories people enjoy. Say this person is able to generate 1 or 2 a month. Over time, the library builds to the point where this individual has dozens of films available, all feature length.
Let us go one step further and envision where a few other "filmmakers" are brought in. We now effectively are dealing with a Web 3.0 movie studio. Now they are producing around 8 films per month. Over the course of a couple years, there will be around 200 films created.
From a financial perspective, if they can get 20K subscribers at $5 per month, that is $100K in month in revenues, or $25K per individual.
This is not Hollywood type numbers yet it is one entity made up for 4 people.
It is also built on a network where many of the subscribers have a vested financial interest. The incentive to support those platforms built on topy only serve the interest of each.
Web 3.0 Services
We have no seen much done in this area, perhaps outside finance.
Web 3.0 services simply cannot be handled by the Web 2.0 structure. Even information that is not freely flowing, in this case behind a paywall, enhances the ecosystem. This is the power of digital platforms.
Also, since it is built in a permissionless environment, the start up costs are nominal. In fact, there is no upfront money for the distribution channel or marketing. These audience is already there.
There might be one requirement: to be accepted, one might need to be a part of that community.
This is not a world where grifters are going to excel. Those who are part of the community, and cater to it, are the ones who will succeed.
Each will have individuals who step up in this way. The market will be there, waiting for someone to simply fill it.
Tyler Perry doesn't have this. For now, his fans are in the millions. However, they are spread all over the world, both physical and digital. His business is built on the typical Hollywood model that was used for more than a century.
It served them well but technology is changing things. We see this in the ability to generate content and are going to see it within the ownership mechanism for online information.
While Tyler Perry isn't likely aware of Web 3.0, his decision is showing the risk that it does pose.
Technology is advancing at a furious pace and Web 3.0 is just that: technology. The two cannot be separated.