NFT in media: Can media companies sell a new kind of journalism?

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  Quantumrun Foresight
• June 14, 2022

Insight summary

Non-fungible tokens (NFTs) are transforming the way creators and media companies monetize digital content, providing a secure and unique method for sales. However, ethical dilemmas emerge when media companies potentially profit from sensitive historical moments, and the long-term stability of the market remains uncertain. This trend also raises questions about economic fairness, as individuals and companies with more resources could dominate smaller creators.

NFT in media context

From celebrities to musicians to athletes, non-fungible tokens (NFTs) are capturing attention as a new way to monetize creative work. This digital asset class allows creators to sell unique, verifiable versions of their content, offering a new revenue stream that bypasses traditional intermediaries like galleries or record labels. Media companies are also entering the fray, repackaging their digital archives as NFTs for public purchase. The appeal lies in the ability to own a "one-of-a-kind" digital asset, verified through blockchain technology, which has caught the interest of both creators and collectors alike.

NFTs are unique digital codes that signify ownership of a specific digital item—be it art, music, or even social media posts. These tokens serve as digital certificates of authenticity, similar to how physical collectibles come with certificates to prove their origin and ownership. The majority of NFT transactions occur on the Ethereum blockchain, a decentralized network that ensures the uniqueness and ownership of these digital assets. The blockchain acts as a public ledger, making it easy to verify who owns a particular NFT and tracing its history of ownership.

High-profile sales have brought NFTs into the spotlight. For instance, digital artist Beeple sold a piece of digital art for USD $69 million, and the rock band Kings of Leon generated USD $2 million from the sale of an NFT album. Media companies see the potential for NFTs to engage the public in a new way. CNN launched its Vault platform in June 2021 to sell NFTs of significant historical footage, such as the fall of the Berlin Wall. Similarly, the New York Times auctioned an article about NFTs by technology columnist Kevin Roose, fetching a price of USD $560,000. 

Disruptive impact

By tokenizing articles, videos, or other types of media, publishers can sell these tokens to subscribers, granting them unique access to paid content. This approach not only opens up additional revenue streams but also helps combat copyright infringements and piracy. The transparency and security features of blockchain networks make it difficult to execute fraudulent transactions, thereby offering a layer of protection against unauthorized copying and distribution.

While NFTs present opportunities, they also raise ethical and market stability concerns. Journalists have pointed out that media companies could unintentionally glorify or capitalize on moments of historical distress if they issue NFTs of such events. For instance, selling NFTs of footage from the January 6, 2021 riots at the US Capitol could be seen as insensitive or exploitative. Additionally, the long-term stability of the NFT market remains uncertain. According to a September 2023 report by crypto analysis firm dappGambl, the market value of NFT collections stands at zero Ether, resulting in 95 percent of NFT collection holders (23 million individuals) possessing investments that have no monetary worth.

The rise of NFTs has also sparked a debate about their impact on economic equality. While proponents argue that NFTs and cryptocurrencies can democratize content creation and ownership, this ideal is increasingly being challenged. Established companies and individuals with significant financial resources are leveraging NFTs to augment their wealth, potentially overshadowing smaller, independent creators. 

Implications of NFT in media

Wider implications of content being repackaged and sold as NFTs by media companies may include:

• Magazines selling digital copies of their archived editions as NFTs or selling photographs and articles piecemeal. 
• Newspapers selling headlines, editorials, investigative pieces, and iconic interviews as NFTs, creating new NFT sub-genres.
• Sports channels and athletes collaborating to sell NFT footage of games and tournaments, particularly highlights of significant moments within their sport.
• Music festivals and live events of all kinds offering NFTs as one of their collectible merchandising offerings sold to ticketholders.
• The merchandising industry that often partners with media companies, like Disney, expanding to offer NFTs alongside toys and clothing branded to specific media properties (e.g., movies and television shows).
• The world of art and collectibles permanently expanding to accommodate both real-world and digital items of value, which will gradually spur novel professions (e.g., digital art curator) and organizations (e.g., NFT museums).

Questions to consider

• How do you think media companies can benefit from NFTs over the long term? Or do you believe NFTs are a technological fad that will soon fade?
• Are you interested in purchasing a piece of history through media NFTs?