New business models emerging in the Metaverse
E-commerce and digital supply chains are part of our everyday business language today, yet they seemed like science fiction before the internet was invented.
Digital real estate, virtual fashion for avatars, and NFT art are new industries rapidly emerging with the convergence of existing and new technologies, from 5G and edge computing to blockchain and Artificial Intelligence/Machine Learning.
Technological convergence is ushering in new ways of business and life where our physical and digital experiences are becoming one and inseparable - a new immersive existence. Cue in the “Metaverse,” estimated to represent an ~$800 billion market by 2024 (see my guide to the Metaverse). Gartner estimates that one in four people globally will spend at least one hour each day in the Metaverse by 2026.
Until recently, there were two types of companies – brick-and-mortar and internet-based. Today, a third type of company is quickly emerging - Metaverse-based companies.
Some early movers have already built new lines of business focused on Metaverse-enabled revenues. For example, Nike has generated ~$184MM (USD) in revenues from selling NFTs since launching this new line of business in Q4 2021. Dolce & Gabbana, Tiffany, Gucci, and Time Magazine are examples of other early movers that have already made tens of millions of dollars from selling NFTs since 2021.
Figure 1: Comparison of business models throughout time
What companies sell, to whom, where, and how is changing – fast. I provide a framework to navigate these emerging trends.
Keep reading with a 7-day free trial
Subscribe to Metaverse Musings | Strategy & Technology to keep reading this post and get 7 days of free access to the full post archives.