NFT Ticketing is set to completely change the way event ticketing works for good. Smart NFT Tickets are unique digital assets issued by event organizers, sports clubs and artists. They can be easily transferred or resold secured by blockchain technology. YellowHeart Crypto & Kings Of Leon Raise More Than $500,000 For Charity While Demonstrating The Future Of Tickets and more in our latest article.
Why use blockchain for ticketing?
Automated bots, scalping and lack of secondary market control are widespread issues with music or sporting events. Keeping control over who resells the tickets as well as who buys them on the secondary market are the problems our blockchain technology has a sound solution.
Most ticketing solutions are still insensible to the risks associated with ticket forging or ticket resale to individuals who are not the wanted attendees. The threats associated range from sexual harassment to active shooter occurrences. Tracking ticket life cycle using blockchain technology gives intelligence to avoid unwanted individuals to gain access.
This makes blockchain ticketing very appealing for events that have security in mind and want to be able to have stricter control over who gains access to the event.
How can NFTs be used for ticketing
NFTs are in essence a unique digital token stored on the blockchain. Once they are minted (created) onto a blockchain (a ledger system that is decentralised and therefore secure and transparent), they can be sold and transferred to customers digitally. Customers then store their NFTs in a secure digital wallet that can be accessed by any device.
Once you shift your focus from seeing NFTs primarily as artwork, you can see that they can represent any form of unique information… such as an event ticket!
Event organisers can mint the required number of unique NFT tickets onto their chosen blockchain. They can programme the NFTs to set a sale price (you can also programme them to set a resale price, but we’ll touch on that in a bit!) or even run the sale as an auction where people can bid for tickets. Customers can then purchase the NFT tickets and store them in their wallet, which can be accessed on their phone. They simply produce their NFT when they arrive at the event.
So what are the advantages of the NFT approach to ticketing?
When implemented well NFTs have the potential to drastically improve the ticketing experience for both organisers and attendees. Some of the top benefits are:
- Preventing scams and fake tickets: The blockchain provides a single source of truth for both organisers and ticket holders. The transfer of NFTs from initial sale to any subsequent resale is recorded immutably on the blockchain, so all parties involved can easily verify the authenticity of the ticket. Even cooler, in cases where resale of tickets is strictly forbidden, NFTs can be programmed as non-transferrable, so they physically cannot be moved to another buyer.
- Perpetual revenue: As programmable digital assets NFTs can have built-in rules for resales, merchandise, content and royalty splits. This means that the organiser can determine profit sharing percentages for any future resales or downstream creative content on secondary markets, and reliably receive these funds knowing they are unalterable within the NFT’s coding.
- New revenue opportunities: NFTs put tickets into the realm of programmable money, opening up unlimited potential for new revenue opportunities. For example resale of NFT tickets as collectables, using NFT tickets as a gateway for giving food and drink deals, even rewarding super fans who have collected a certain number of event tickets.
- Reduce costs: The costs associated with minting and selling NFTs are negligible in comparison to traditional ticketing infrastructure. For less production cost you also get a ticket which is unforgeable, so organisers and customers can quickly and absolutely validate the authenticity of every ticket on the chain and see the history of ownership.
- Fast production: An NFT can be minted, finalized and ready to sell in less than 1 minute.
Could NFTs Be a Potential Game-Changer for the Live Events Industry?
NFTs can be just about any form of digital content (e.g., example videos, memes, music, fonts, etc.) — almost any type of media file. Since they designate authenticity and the attractive concept of exclusivity, NFTs could impact how creative industries operate. Consider a digital ticket in the form of an NFT — a potential game-changer for live events. NFTs pose an opportunity to add any perk you want to make the offering valuable and unique. The surprising news is that the majority of live event promoters, from my perspective, have not yet realized their entire business model could be disrupted if they do not pay attention.
Consider how Kings of Leon entered the NFT space recently with their album When You See Yourself. The album was released, as one would expect, on services like Amazon Music, Spotify, and Apple Music. The album was also released in NFT form on a blockchain-based music platform called YellowHeart. The NFT drop included three different types of tokens. The first was a special album package. And the second offering included live show perks and the third contained exclusive audiovisual art. For ultra-fans, YellowHeart also “minted” 18 “golden tickets” that unlocked actual front-row concert tickets at every Kings of Leon tour for life as part of the NFT release. In a deliberate strategy to enhance the perceived value, the band auctioned six of the NFTs. While the remaining 12 were vaulted, much like rare pieces of art. They were the first band to release music in the form of an NFT.
NFTs could help the artists
Recently, rapper Post Malone is planning to launch a celebrity beer pong league using NFT concert tickets technology to let fans take part in the event.
Many artists earn income by selling swag and — when it’s not a pandemic — concert tickets. NFTs, by their nature, could provide artists an outlet to sell their products and live streams. Leaders and promoters in live events should consider how they could offer various show perks, add-ons, or limited offerings in the form of NFTs. Incumbent ticketing giants should consider developing these capabilities quickly if they do not want to be outsmarted by more agile, “pure-play” NFT-focused ticketing companies. The live events space is only one of the many industries that could be completely disrupted by NFTs
We will see a new generation of founders and entrepreneurs who understand how NFTs can disrupt and change the live events industry with transformational opportunities. We could expect future “unicorns” in the live events market that incorporate NFTs in areas such as talent management, unique perks, live events promotion and ticketing solutions. As far as incumbents, one defensive play we might see is these larger companies acquiring these startups before they get too big. We could see an exuberant M&A activity in space in the next few years.
The NFT revolution makes the present (and the immediate future) the most exciting time one could have ever imagined for creators, especially when it comes to live events.
Read more about NFTs
There is much more coming this week so stay tuned and follow us on our socials