This issue of the Atlanta Digital World Summit takes you on a trip down memory lane! For those of a certain age (no, not the 3 broadcast networks and PBS crowd), remember dial up internet?
That noise was called ‘handshaking’ and it signaled the excitement of impending internet connectivity! The world (and shopping, and porn) at your fingertips! And it quickly became akin to those same fingertips’ nails scratching down a chalkboard.
Fast forward to today – where if we are forced to wait more than a millisecond for our page to load, we squirm in our seats and yell obscenities about our criminally slow internet providers.
Many of us held on to our old school ways, caving little by little with each revelation of the convenience of electronic… everything. OK, so maybe it wasn’t little by little – let’s face it, we dove head first and into the fresh blue immediacy that is technology. But did that pool have any water in it?
The term FinTech is traced back to the ‘90’s, but had origins even earlier. Many of us remember how cool it was to have ATMs. Machines that actually would dispense money any time of day or night! Where’s the party?!
Then the 21st century opened its pod bay doors and banking services became more and more digitized. The 2008 global financial crisis also eroded confidence in traditional banking institutions, and along with the sweeping rise in digitalization, it kickstarted what we now recognize as the FinTech industry.
Bitcoin’s rise in 2009 also had a significant effect on the financial world as many different cryptocurrencies were introduced. Various FinTech businesses emerged, some of which included alternate credit scoring, digital wallets, and small ticket loans.
But much like the ever-popular video game theme where larger entities keep growing larger by swallowing smaller ones, big banks in the US proved to have a voracious appetite. Imagine that!
There are those who still view FinTech as an extension of banks or a microfinance company, but it has grown much larger than that. Its global market size was $257.26 billion in 2022. By 2030, we’re looking at 882.3 billion.
So, yeah, there’s a little growth going on, and you can almost hear the banking industry salivating (please, chew with your mouths closed…)!
As most retail ads still – and always will, proclaim, ‘But wait! There’s more!’, the Harvard Business Review reported FinTech companies were discovering tools to help cut costs and streamline operations, leading to significant productivity improvements.
Cheaper production? Well, then, given that outlook how long might it possibly be before Hollywood came calling? Too late. FinTech entered the entertainment industry the moment we dropped our raggedy tape/disc players and began to right-click streaming content. Cash? Get serious. Plastic? So yesterday. Click. Click. Watch. Popcorn isn’t even done in the ‘wave.
Does anyone even carry cash anymore? Please; we don’t shop places that don’t take ApplePay or Venmo. And speaking of Venmo – quite the success story, right? Yep, that’s why PayPal ate ‘em up in 2013 (insert gaming sfx)…
As digital platform usage increases exponentially among consumers (What? You thought it would slow down?), businesses are rapidly modifying customer service approaches. With growing customer expectations, many companies now offer financial services through ‘embedded finance’, transforming the way they cater to our financial needs. And yes, embedded finance means exactly what you think. (nordicfintech magazine, 11/23)
Blockchain technology has also brought the concept of cryptocurrency into the entertainment industry. Artists and content providers are already accepting bitcoin as payment for work, circumventing traditional financial middlemen and lowering transaction fees (don’t worry – your price will still feel high). But this decentralized payment approach gives authors more financial liberty while broadening payment possibilities for customers. Finance Magnates.com (10/23)
On another front, Digital gamification (yes, it is a word, coined in 2003 – catch up!) is creating a shift within the FinTech sector, and the entertainment industry is at the forefront of this transformation. Instead of merely full-fledged games, apps now incorporate video gaming elements, revolutionizing the way intermediation operates in FinTech economies. Here’s where terms like UX (user experience) and UI (user interface) collide with the terms behavioral science and socio-technical knowledge areas. Suffice to say, FinTech apps can provide financial services and engage users in a playful and interactive manner.
Digital.gov (you know FinTech has been around for a minute if the government actually has a site!) says data democratization is the process of making all this data more accessible to a wider range of people in society. It involves breaking down barriers that prevent people from accessing, analyzing, and utilizing data effectively.
Digital technology and inclusionary access (that just means more of us can get it) breaks down the barriers that keep us (we, the people, remember?) from proper access and understanding data.
So how do FinTech and entertainment actually converge? Investment opportunities, of course, in film and television, as well as live events and gaming. FinTech is revolutionizing how we access our entertainment. Mobile payments, digital wallets and blockchain technologies streamline transactions for ticket purchases, merch, and payments to artists and creators. Consider the lines between entertainment and finance officially blurred. Netflix and Amazon Prime provide entertainment and are also financing models for content creation and distributions!
Where is Aldous Huxley when you need him? Ok, no one says universal happiness is achieved through everyone getting financing for independent content creation. But we’ve certainly seen social media launch an incredible number of rising stars.
We have released the Kraken! Well, that’s how I felt about Jake Paul when I realized so much caffeine was in a drink he marketed to kids that it had a warning disclaimer on the side!
The truth is that we need to make sure we consider how we apply regulatory frameworks to a rapidly evolving industry. And of course, there are almost unlimited ethical considerations, most notably responsible financial practices and fair compensation for creators.
FinTech merging with entertainment may be a Brave New World, but we must take a critical look at how we’ve answered those two ethical questions above in the last several iterations of each new financial frontier.
The intersection of entertainment and finance represents a thrilling frontier of opportunity and innovation. From expanding investment prospects in the entertainment industry to the transformation of financial services through entertainment integration, this convergence is reshaping the way we engage, invest, and experience both sectors. By embracing the evolving landscape and addressing the associated considerations, we can unleash the full potential of the entertainment and finance union, fostering growth, creativity, and economic prosperity.
The convergence of entertainment and finance also raises ethical questions. Responsible financial practices, transparent investment models, and fair compensation for artists and creators are crucial to ensure a sustainable and ethical ecosystem.
The convergence of entertainment and finance brings numerous benefits, but it also raises important considerations:
The intersection of entertainment and finance represents a thrilling frontier of opportunity and innovation. From expanding investment prospects in the entertainment industry to the transformation of financial services through entertainment integration, this convergence is reshaping the way we engage, invest, and experience both sectors. By embracing the evolving landscape and addressing the associated considerations, we can unleash the full potential of the entertainment and finance union, fostering growth, creativity, and economic prosperity.
Dude who thinks he knows everything!
Data is king in the entertainment sector, and fintech plays a critical role in harnessing the potential of data analytics and audience insights. Content providers may use fintech tools to collect and analyze massive volumes of data, providing priceless insights into consumer preferences, watching habits, and purchasing trends.
By better understanding their target demographic, entertainment organizations may customize their content and marketing methods, thereby improving the viewer experience and increasing income possibilities. Streaming platforms, for example, propose customized content to consumers based on algorithms powered by fintech-driven data analysis, enhancing user engagement and retention.
Furthermore, data analytics enable content providers to quickly identify and capitalize on new trends. Fintech solutions can automate data collecting and analysis processes, resulting in real-time insights that can be used to influence strategic choices, content creation, and marketing initiatives.
Finance MAGNATES
Atlanta Digital World Summit® . All Rights Reserved 2024 | Website Design By Webstuffguy
