Fox Corp. is investing millions of dollars in blockchain technology and non-fungible tokens (NFTs). The move comes as the company looks to capitalize on the growing popularity of these new digital assets.
Fox is one of the four major U.S. broadcast networks, and it is the only one not currently tied to a major direct-to-consumer subscription streaming play. The company has been working to establish itself as a leader in the digital space, and this latest move shows that it is serious about embracing new technologies.
Charlie Collier the CEO of Fox Entertainment says:
“We have a competitive advantage in building a business on the blockchain,” he says. “We’re able to invest in that, instead of having a vertically integrated SVOD [subscription video-on-demand] service; we are not spending billions of dollars on content and focusing on churn.”
NFTs are digital assets that are stored on a blockchain and can be bought, sold, or traded like other cryptocurrencies. They have been gaining in popularity in recent months, with some high-profile sales taking place. For example, an NFT of a digital painting by the artist Beeple sold for $69 million earlier this year.
Blockchain is the underlying technology that powers cryptocurrencies like Bitcoin. It is a decentralized ledger that can be used to track and store data. Fox is betting that blockchain will become increasingly important in the years ahead, and it is investing heavily in the space.
The company has already launched a dedicated Web3 and NFT division, and it has plans to invest $100 million in the space over the next three years. Fox believes that NFTs and blockchain will eventually revolutionize the entertainment industry, and it is positioning itself to be at the forefront of this change.
Earlier this year, Fox launched Blockchain Creative Labs, a division within Bento Box Entertainment that produces animated content. A key role of BCL is to develop, launch, manage, and sell non-fungible token content and experiences.
Fox’s move into NFTs and blockchain is a risky bet, but it could pay off big if these new technologies take off as expected. The company is making a major investment in the future, and it will be interesting to see how things play out.