Web3, once considered a potential game-changer in boosting customer loyalty, has faced numerous challenges over the past two years.
Despite its potential, even major brands like Starbucks and Nike have abandoned their Web3 ventures after struggling to keep consumers emotionally invested.
So, what went wrong?
Was it a flawed theory or poor execution? Or was it simply, bad timing?
While the exact reason remains unclear, one thing is certain: the sports industry has emerged as the perfect foundation for blockchain technology to thrive.
Let’s explore three reasons why.
Sports isn’t just an activity, it’s a religion
The stadiums and courts serve as sacred arenas of worship, the players are celebrated as idols for their abilities, and the fans form dedicated communities.
Sound familiar?
Sports effortlessly retain fan loyalty
Unlike albums and movies, which are released sporadically, and fashion collections that follow seasonal trends, sports have a consistent schedule.
This regularity is what keeps fans hooked and returning for more.
Sports communities are a gold mine for building connections
Billions of global sports fans rely on broadcasts and streaming platforms to catch their favorite athletes or teams live.
While the sports business is traditionally centered around tickets, fashion, and merchandise, there has been a growing recognition for direct-to-fan relations, which boasts a streaming market worth US$19 billion and forecast to grow by 25% per annum until 2030.
However, less than 1% of sports fans are currently known to sports IP owners, marking a significant missed opportunity for engagement and potential monetization.
But how exactly can sports capitalize on Web3 to generate revenue?
Leveraging Web3 to Monetize Sports Fandom
Direct monetization, through selling digital merchandise and subscriptions, is one way to do so.
For example, McLaren Racing’s 23/23 campaign allowed fans to claim customized digital collectibles for each race of the Formula 1 season, enhancing fan interaction and showcasing the potential of tech innovation in sports.
On the other hand, indirect monetization derives value from partnerships or sponsorships.
Apecoin DAO’s multi-year sponsorship deal with BWT Alpine F1 Team introduces various offerings, which include integrating $APE into the F1 team's Web3 strategy, launching exclusive merchandise, digital assets, and a new loyalty program, metaverse activations, and selling limited-edition Alpine X $APE tokens on ApeChain.
Applying Sports’ Web3 Strategies to Live Events As sports teams have successfully monetized and boosted engagement with Web3, All Access Anonymous (AAA) believes the live events industry can achieve similar breakthroughs. This belief has spurred us to pioneer a new era of real-world experiences (RWEs) across our partnerships with more than 50 festival IP owners in Asia and Australia. Here’s how.
-
Drive engagement and community-building
Just like it does for sports teams, Web3 lets music festival organizers reward loyal fans with digital collectibles, access to exclusive experiences, and community ownership.
At the Watera Music Festival in Ho Chi Minh, Vietnam, integrating gamification and totems led to the creation of 532 AAA wallets, with 68% of attendees claiming loyalty packs and artist meet-and-greets.
Similarly, AAA’s collaboration with the at-sea music festival, It’s the Ship, had fans vying for limited edition duck totems that granted access to invite-only parties and interactive artist experiences. -
Create new revenue streams
By leveraging digital assets and decentralized platforms, organizers can forge deeper bonds with their true fans and unlock new revenue streams.
Through AAA’s platform, the fans can stake $AAA tokens into a liquidity pool to earn a cut of the transaction fees generated by the prediction market. -
Promote involvement in the curation of music festivals
A vote escrow model encourages users to hold digital tokens for extended periods in exchange for a say in curating music festivals.
With AAA, users can hold their $AAA tokens to influence the planning and execution of their favorite events and have a chance to redeem greater rewards, thus fostering a cycle of growth and engagement.
Fusing Web3 with sports or live events has fundamentally transformed how fans experience their passions, blurring the lines between spectating and participating. And as the live events industry looks toward the future, it’ll become evident that embracing this digital revolution will pave the way for organizers to craft unforgettable experiences for generations to come.