Blockchain for Creative Industries: Current State and Research Opportunities

Abstract

Blockchain based NFTs (non-fungible tokens) and smart contracts provide creative industries with exciting opportunities. While they have created a great deal of frenzy in markets, in the frenzy there emerges real value for the industries. Traditionally, creators in the creative industries often need to rely on powerful intermediaries to distribute and profit from their creations. NFT and smart contracts provide creators much closer access to content consumers/buyers. Along this line of thought, this article provides marketing researchers with an overview of the unfolding adoption of NFTs and smart contracts in creative industries. We start by pointing out the market frictions and consequent “transaction costs” that creators face traditionally when distributing their creative content to consumers/buyers. Then, we present the basic ideas of smart contracts and NFTs, discussing how they can transform the market by reducing these transaction costs. Meanwhile, we point out limitations and challenges that creators, buyers, and marketplaces might face in the adoption of NFTs and smart contracts. Finally, we raise an abundance of unexplored research questions interesting to both marketing researchers and practitioners.