Can Web3 take Entertainment to the Next Level?
From Support to Participation: The Paradigm Shift in the Fandom Economy
This report by Tiger Research analyzes Web3 adoption in the entertainment industry. We appreciate the valuable insights provided by Modhaus, Yoake, and Alt.Town.
TL;DR
Web3 technology turns fans into active participants and creates new value opportunities. However, technical barriers and market volatility block mass adoption. A practical approach is necessary.
Modhaus, Yoake, and Alt.Town use Web3 to boost fan engagement and reshape the industry. On-chain voting, tokenomics, and artist tokenization encourage active participation. These methods help build a sustainable ecosystem.
Web3 redefines the fan-artist relationship. This approach expands the market and improves predictability. However, speculation and market distortion remain risks. A balanced strategy is essential.
1. Introduction
The entertainment industry is integrating Web3, moving beyond technical trials to a fundamental shift. Unlike traditional passive models, Web3 fosters active participation.
Web3 adoption in entertainment faces challenges. Technical barriers limit fan participation and mass adoption. Market volatility and negative perceptions add to resistance among fans.
The entertainment industry must assess Web3’s practical value, not just its implementation. This report explores recent Web3 use cases and future trends, focusing on fan-driven mass entertainment.
2. Web3 Powered Entertainment Projects
2.1. Modhaus: Rethinking the Core of the Industry
Modhaus is a Web3-based entertainment agency in South Korea. It pioneered fan-participatory artist groups, tripleS and ARTMS. By leveraging Web3 technology, Modhaus enables fans to engage directly in artist activities. Fans earn tokens through community participation and NFT photocard purchases. These tokens grant voting rights on key decisions, such as unit formation and concept selection.
tripleS and ARTMS built a strong fanbase through consistent activities over two years. Billboard recognized one of their albums as a top K-pop release of 2024. Their success came from prioritizing content quality and fan engagement—the core of entertainment. Unlike many Web3 projects focused on short-term speculation, Modhaus emphasized high-quality content and genuine fan interactions, securing mainstream appeal.
Web3 technology played a key role in their success, especially in ARTMS. The Produce 101 vote-rigging scandal damaged trust in the Korean entertainment industry. ARTMS members also faced financial disputes with their former agencies. Fans demanded greater transparency, and Web3 provided a solution. NFT sales recorded revenue openly, allowing fans to track earnings for their supported artists. This transparency strengthened trust between artists and fans.
Web3 technology improved global fan accessibility. tripleS and ARTMS gained popularity overseas, especially in North America. Their token-based system expanded the global fandom economy. Fans could participate in governance equally, regardless of location. International fans used an app to buy NFT photocards without complicated steps. Before, they paid high shipping costs for albums and merchandise. Digital products reduced these costs and made participation easier.
Modhaus succeeded through consistent efforts, strong musical appeal, and strategic Web3 integration. They did not promote Web3 as their core identity. Rather than making Web3 their core identity, they seamlessly incorporated it into the music industry. This approach set them apart and strengthened their competitive edge, positioning Modhaus as a leading example of Web3 adoption in entertainment.
2.2. Yoake: Redefining the Fandom Economy
Yoake is a blockchain-based entertainment fandom platform in Japan, led by legendary producer Yasushi Akimoto and co-developed by Startale, the core contributor of Soneium. Known for producing AKB48 and other major artist groups, he is exploring new possibilities in the entertainment industry through Yoake. The platform has launched a beta app within the Soneium mainnet where fans participate in key decisions, such as selecting setlists and voting for the best-dressed artists, and has attracted over 60,000 new users to date.
Yoake aims to build a transparent ecosystem where fans receive fair rewards for their contributions. Fans now create fan art and videos, actively promoting artists instead of just consuming content. However, the industry has not recorded or rewarded these efforts effectively, relying only on voluntary participation. Yoake plans to change this by using blockchain to track fan activities and ensure fair compensation. This system allows fans to support artists while gaining recognition and economic value.
Yoake also seeks to unify fragmented content in the entertainment industry. Fans currently switch between platforms like TikTok, YouTube, and Weverse to access content, creating inconvenience. Yoake plans to integrate these experiences into Yoake Space, a single platform for seamless fan engagement. This system will also recognize and reward fan contributions.
Yoake plans to launch its token $YOAKE with two main functions. It serves as a currency for live streaming, merchandise purchases, and ticketing. It also rewards fan contributions by tracking engagement through on-chain data and distributing revenue fairly. Unlike Modhaus, Yoake’s token will allow transfers and trading. Fans can cash out on exchanges or use DeFi services, expanding its utility. This model shifts the industry from passive consumption to shared value creation between fans and artists.
Yoake’s approach follows YouTube’s impact on the creator economy. YouTube’s revenue-sharing model expanded content formats and audiences, driving market growth. Yoake aims to create a similar cycle. Fans will produce and consume content while earning revenue and reinvesting in the ecosystem. This structure could redefine entertainment’s economic model.
2.3. Alt.Town: A Model for Tokenizing Artist Value
Alt.Town is a platform that tokenizes and trades the value of virtual celebrities (artists). Unlike traditional Web3 fandom platforms that focus on rewarding fan activities, Alt.Town takes a different approach. It tokenizes an artist’s popularity and growth potential, creating a unique value model.
Each artist on Alt.Town issues a unique token called "DNA." Fans and the community use these tokens to participate in the artist's growth. Market demand determines the value of DNA. Alt.Town plans to introduce an evaluation system that uses external data, including popularity, activity, and fandom size, to set objective standards.
This model offers a new way to fund the entertainment industry. It moves away from major agencies and investors, creating a decentralized support system led by fans and communities. This approach increases industry diversity and gives independent artists and smaller agencies new funding opportunities. By relying on community support, artists can produce and promote content more efficiently.
3. How Web3 Technology Will Transform the Entertainment Industry
As seen in previous cases, Web3 adoption is set to bring significant changes to the entertainment industry. These transformations will unfold in three key areas.
3.1. From a Hit-Driven Industry to a Predictable Market
The entertainment industry operates as a hit-driven business that depends on few successful cases. Its nature makes predicting artist popularity difficult, with trends changing rapidly. Content production and investment decisions face high uncertainty. The K-pop industry specifically struggles with chart manipulation and album sales tampering. These market distortions hinder objective, data-based decision-making.
Blockchain technology can solve these problems. It records all data transparently throughout content creation, distribution, and consumption. This technology identifies real fans and tracks their behaviors and preferences in real-time. It builds a reliable data foundation that clarifies decision-making processes. Web3 technology removes market bubbles and distorted information. It will transform the entertainment industry into a healthier, more sustainable growth structure.
3.2. Expanding Diversity Through Decentralized Fundraising
Traditional funding in the entertainment industry comes from major agencies and investors with large capital. The idol sector requires substantial costs from debut to promotions. This creates a market dominated by large agencies.
Web3 technology transforms entertainment funding. Decentralized platforms convert fans into active investors with decision-making power. Projects like Nippon Idol 3.0 use IEOs to secure capital directly from fans. This gives supporters both governance rights and financial rewards. Artists can now launch projects without depending on major agencies or investors.
This funding revolution creates opportunities for independent artists and smaller agencies. It diversifies the market by supporting niche genres and experimental content with dedicated followings. Much like traditional crowdfunding expanded creative possibilities, Web3 funding will make the entertainment industry more dynamic, inclusive, and innovative.
3.3. Expansion of the Fandom Economy and the Flywheel Effect
The entertainment industry grew through fandoms, but fans remained content consumers. Traditional business models failed to recognize their economic value despite their contributions. Web3 technology changes this structure by creating economic value through fan activities and returning it to the ecosystem. Fan art creation, community management, and content curation, once informal or difficult to monetize, now receive rewards through token economies. This transformation expands the fandom economy by recognizing fan activities as economic value.
Fans shift from consumers to active participants in the ecosystem. Increased participation strengthens fandoms, and generated revenue flows back into content production and artist development, creating a flywheel effect. Beyond market expansion, this deepens fan-artist relationships and supports a more sustainable economic structure for the entertainment industry.
4. Closing Thoughts
Web3 is transforming the entertainment industry but remains in its early stages. Users currently see only limited improvements, such as on-chain voting. As fan participation and reward models evolve, Web3 could drive structural changes and reshape fan-artist relationships.
Web3 will not replace core industry elements. Direct fan engagement, content quality, and mainstream appeal will remain essential. Instead, it enhances transparency and supports healthy market growth. Open infrastructure connects global fandoms, breaking regional barriers and expanding the industry’s reach.
Web3 acts as a catalyst for growth rather than a disruptive force. It helps the industry scale by adding new possibilities and increasing flexibility without replacing its foundation.
However, Web3 adoption carries risks. Short-term investors may prioritize speculation over fandom value. Capital-driven governance can reduce fairness and lead to fan fatigue. Excessive competition may create stress for both artists and fans.
The industry must balance innovation with sustainability. A well-structured approach can minimize risks while preserving core values. If implemented effectively, Web3 can build a stronger economic model and unlock new collaboration opportunities for fans and artists.
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