Building a more inclusive Metaverse
It has been some time since the term “Metaverse’’ hit mainstream media. A once fringe term that was reserved for video games and technology enthusiasts is now a reality with multiple virtual reality projects flourishing both within centralised and decentralised ecosystems. From technology giants such as Facebook, Microsoft and Epic games to popular projects built on top of blockchain networks, such as Decentraland and Axie Infinity, the Metaverse gives rise to infinite possibilities to the exploit and monetise of creativity.
At SIP Management, we believe the Metaverse provides a unique opportunity for the development of more prosperous, inclusive and sustainable creative industries and overall Digital, Creative, Media and Sport (DCMS) sector in the UK and beyond.
DMCS sectors
DCMS uses a range of definitions based on internal or UK agreed definitions. All definitions are based on the Standard Industrial Classification 2007 (SIC) codes. The Standard Industrial Classification is a means of classifying businesses according to the type of economic activity that they are engaged in. In the UK the DMCS sector comprise the following subsectors:
- Telecoms
- Cultural sector
- Creatives industries
- Tourism
- Sport
- Gambling
These are the sub sectors that will be the most impacted by the adoption of the Metaverse and web 3.0
Funding, media and public interest are three factors that will fuel Metaverse and Web 3.0 interest in the decade to come as many more stakeholders buy in these new virtual realities and augmented realities. Years ago, very little money was spent on in-game virtual goods — about $5B in 2015. In 2021, aside from NFTS, $60–70B was spent on purely cosmetic and non-functional virtual goods. Brands like Fortnite are currently outpacing the majority of traditional luxury brands in terms of apparel sales, with virtual apparel.
5 brands already boldly embracing the metaverse
This new influx of capital, interest and popularity may become the key to unlocking sustainable growth and financing for the creative industries that have often lacked the backing enjoyed by other IP rich industries such as technology and science.
The Metaverse as an outlet for more profitable and sustainable creative industries
Although many would question the sustainability of many decentralised Metaverse videogames economies, Web 3.0 decentralisation provides a unique solution to the problem faced by the biggest game franchises; distribution of value. Gaming, the same as any other creative activity, provides joy and entertainment to the world. However, very often the practices within these industries do not align with the creatives that inspire and bring to life such experiences. Web 3.0 enables the development of a more equitable DCMS sector, that aligns the interest of the creatives, the project investors and their community of users. This represents an opportunity for small businesses and independent creatives to generate sustainable revenue with the backing of their community.
In the UK, creative industries are the industries of the future; they are a motor for economic growth and drivers of innovation. Oxford Economics projected that the sector could recover faster than the UK economy as a whole and contribute more to the national economy than the financial services, insurance, and pensions industries combined. Creative industries businesses can fuel their growth by tapping into the significant resources and liquidity available within Web 3.0 and Metaverses. The Metaverse is therefore a source of financing and sustainable monetisation opportunities for creative industries businesses.
Sustainability and Inclusivity
Looking at the projects being launched by tech companies and decentralised ecosystems, it’s clear to see why concerns of sustainability and inclusivity are arising. The most successful projects are backed by celebrities and often have an entry point beyond the means of ordinary people. The top projects on Coinmarketcap have an entry point of thousands of dollars through highly priced NFTs collection. Meanwhile, many critics are questioning the sustainability of the Play to Earn model of popular games such as Axie Infinity, especially when referring to the neo capitalist tendencies arising within, where players from poorer regions of the world are at the mercy of exploitative investors.
Despite all these criticisms and challenges, the Metaverse still provides a unique opportunity to roll out innovative business models and projects that otherwise would have been impossible to develop or finance.
The AFERVERSE
A special mention to the AFERVERSE, a project born out of the SIP Management community that will support the creative, cultural and sport industries in Africa and has dubbed itself as “the gateway to the African Metaverse”. This project aims to propel underserved industries, while providing a new canvas for the expression and celebration of innovation, creativity, and culture. A medium to create inclusive digital experience that will have real world social impact. The AFERVERSE set out to create a Metaverse whose reach will transcend the mostly video games and animation focused ambitions of the majors titles and will enable the whole world to easily and immersively experience the breadth and depth of the African continent. This will kick start with a flagship football NFT collection that celebrates African football and history like never seen before and will later on usher a suit of gaming experiences. The team behind this project want to deliver an inclusive and sustainable metaverse through a robust roadmap and a strong community of value adding stakeholders and partners.
The Metaverse is here to stay and it’s expected to play an ever growing role as governments and big companies continue to respectively develop policies and invest in Web 3.0 technology.
As consumers, fans and concerned citizens we can only wish for those projects whose environmental, social, and corporate governance aligns with our wellbeing and overall planet sustainability to be the one to survive once the dust settles.
