New Perspectives in the Entertainment Industry: Infinite Possibilities in the Web3 Era

Driven by the digital age, the entertainment industry is undergoing unprecedented changes. Users can explore virtual worlds, interact with anime characters, and even dress their digital avatars in outfits designed by top designers. This new experience that blends reality and the virtual not only adds new dimensions to users' leisure lives but also brings significant business opportunities and economic value to the industry.

The application and continuous development of innovative technology is one of the main driving forces behind the rapid expansion of the entertainment industry in recent years. Driven by digital technology, digital entertainment has become a highly promising economic sector. It is predicted that global online entertainment market revenue will grow from $184.2 billion in 2021 to $653.4 billion in 2027, with a compound annual growth rate as high as 21%, making the development prospects remarkable.

The popularization and continuous upgrading of mobile internet and smartphone technology have led to explosive growth in fields such as streaming music, video, social platforms, and mobile games over the past decade. In the future, a new round of breakthrough growth is likely to be driven by Web3 and blockchain technology. Concepts such as NFTs, GameFi, "play-to-earn" models, and immersive entertainment are all directions that global entertainment giants are currently focusing their investments on.

Recently, a digital entertainment leaders forum themed "Entertainment Power UP! Web3 New Horizons" was held in Hong Kong. Over 90 experts from more than 30 countries and regions shared how digital entertainment technology brings new experiences to various fields such as art, education, sports, and life in the Web3 era, and discussed the applications and opportunities of Web3 in daily life. More than 3,500 people participated online and offline, generating a strong response, highlighting the vibrant development of Hong Kong's digital entertainment industry.

A high-quality entertainment experience can stimulate consumption and drive economic development. Hong Kong is actively seizing the opportunities presented by the new wave of digital entertainment development. Currently, Hong Kong has gathered about 170 companies engaged in digital entertainment, involving businesses such as the metaverse, game development, game big data analysis, esports equipment, and peripheral research and development.

Among these companies, many are actively applying Web3 and other cutting-edge technologies, achieving significant results. For example, a local digital health startup has collaborated with a well-known entertainment company this year to launch the world’s first immersive interactive fitness adventure application, allowing users to work out alongside comic characters. Another startup game company's metaverse game has also successfully entered the Japanese market, accumulating over 145,000 members in community channels within just six months.

The application scope of Web3 technology is not limited to digital entertainment or virtual assets. Its core blockchain technology features decentralization, security, transparency, immutability, and low cost, which can be applied in various fields such as finance, business, trade, supply chain management, and even daily life, solving many practical problems through technological and application innovations.

To accelerate the development of Web3, the Hong Kong government has allocated 50 million Hong Kong dollars to establish a thriving Web3 ecosystem, including attracting businesses and talent to settle, as well as organizing relevant education and promotional activities. Currently, Hong Kong has gathered over 180 Web3-related technology companies, including unicorn companies and licensed virtual asset trading platforms, with more than one-fifth of the companies coming from the mainland and overseas.

In addition, the government has established a Web3 development task force, bringing together industry leaders and professionals to assist the government in steadily promoting the sustainable development of Web3 in Hong Kong from the aspects of regulatory framework, ecosystem, infrastructure, talent training, and educational promotion.

As an international financial center and a metropolis that values innovative technology, Hong Kong must maintain a sense of urgency and seize the major trends in technological development. Under the premise of sound and appropriate regulation, it should actively lead and promote innovative exploration and development, enabling Hong Kong to ride the wave of this intense technological innovation and develop its economy for the benefit of its citizens.