Everyone is talking about Web3, but what exactly is behind it and what opportunities and risks are there for the media industry? In cooperation with 1E9, XPLR: MEDIA in Bavaria questioned 18 Web3 experts in qualitative interviews and 210 Bavarian media professionals as part of a quantitative survey on current Web3 developments. We present the results of the study to you.

What is Web3?

The Web3 is the next generation of the World Wide Web built on blockchain technology and decentralized applications (dApps). In contrast to the current Web2, which is mainly dominated by centralized platforms such as Google, Facebook and Amazon, Web3 is intended to put power over their data and co. back into the hands of the users themselves.

Web3 is built on a variety of technologies including blockchain, distributed ledger technology (DLT), smart contracts, cryptocurrencies and more. As a result, a wide range of applications is conceivable, for example:

  • Decentralized marketplaces: Here, users can trade directly with other users without the need for a central, controlling authority
  • Decentralized Finance (DeFi): Decentralized finance is a blockchain-based form of financing that does not rely on central financial service providers such as brokers, stock exchanges or banks, but uses smart contracts on blockchains.
  • Decentralized applications: dApps can run on the blockchain instead of central servers, increasing their security and independence.

The Web3 is seen as a way to solve current problems of the Internet. Among them the lack of privacy, security, transparency and control for users.

Web3 in the media industry: What is the current status?

The quantitative survey of 210 media professionals from Bavaria shows: The Bavarian media industry is open to and interested in Web3. A good 45 percent have already dealt with the new technologies, and ten percent are already working with them.

The study confirms that Web3 projects are already playing a role in the media industry: the front runners among the technologies used are NFTs (41 percent) and blockchains (27 percent). In the case of companies that are not yet working with Web3, the main reasons are a lack of conviction (35 percent), a lack of technical know-how (25 percent) and a lack of budget (14 percent).

Opportunities of Web3 for the media industry

The qualitative interviews with 18 Web3 experts conducted for the study showed that Web3 is seen as an opportunity for the media industry to break away from the platform economy of the large tech companies. Alternatively, a creator economy can emerge in which creators can use smart contracts to monetize their works over the long term.

Communities develop around the projects of the creators, which can be rewarded with crypto tokens or NFTs, for example. According to the experts, these communities will determine the success of companies on the Web3, because they are the only way to create influence and relevance. And: Communities also form the basis of new financing models that enable the media to break away from traditional advertising revenue and established platforms. An example of this can be crowdfunding.

It is precisely this strengthening of the creator economy, new payment models and the increasing relevance of communities that means that classic media are threatened with a loss of importance.

Web3 applications must make sense in the medium to long term

For the experts surveyed, one thing is clear: media companies should not rush into the new Internet, because Web3 applications and protocols must make sense in the medium to long term. The focus should now be on introducing employees to Web3 through lectures and workshops.

Even small budgets allow first steps and experiments with Web3 technologies, e.g. B. with NFTs. It is already possible, for example, to use token-based reward systems to encourage users to allow personalized advertising, take part in surveys or write valuable comments.

Download the whole study now for free

If you are interested in the topic and would like to find out more about opportunities and risks for the media industry on Web3, you can download the free study by XPLR: MEDIA in Bavaria here.

Download the study now for free

Source: https://www.basicthinking.de/blog/2023/02/28/web3-studie/

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