User-Generated Content Expected To Increase Metaverse Revenue

21 Jul 2024

Some of the top metaverse companies are beginning to realize that user-generated content is the future of the industry. As revenues slide due to high production costs, the value of user-generated content for companies has become clearer.

Why User Generated Content?

Today, game studios and metaverse developers are spending billions of dollars creating content that could be made by users. In fact, user-generated content would likely lead to an explosion of creativity, giving users a massive library of diverse content to choose from. 

This part is obvious, when a hive mind is unleashed on a task, we usually see results that are far beyond what a small in-house team is capable of. This has never been the hang-up though, even though companies knew that user-generated content would create a better user experience, they were worried that it would hurt their bottom line. 

A New Business Model

For decades, the dominant business model has been to sell experiences and digital items and heavily enforce Intellectual Property (IP) violations, even to the point of bringing legal action against supportive users who just want to do something creative with an IP. User-generated content flips this business model on its head and gives users a ton of freedom to get creative with existing IP to put their own spin on it, and even resell that content to other users.

You can see how this idea can be a bit scary to a boardroom that isn’t thinking deeply about it. At face value it can seem like you are eliminating a massive revenue stream by allowing users to create their own economy, but this ignores the fact that companies can very easily take a small percentage to facilitate these trades, and likely make even more than they did selling digital items directly users because they no longer need to worry about production costs. 

Somnia’s Creator Economy 

The creator economy is at the center of Somnia’s vision. Somnia’s protocol allows users to collaborate and remix content across platforms, and these protocols also include a Marketplace Protocol, which allows users to buy, sell and trade their content as well. It goes even further than this though, as Somnia also has plans for decentralized governance, which will give the community even more control over the economy that develops in the Somnia ecosystem

To learn more about our protocols and what we’re building, check out our litepaper and join our community for more information about how you can get involved and start creating your own content. 

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