Superfans love to own limited edition special versions of their favorite movies and have been prepared to pay a premium for the privilege. Warner Bros. and Eluvio use web3 technology to let them do the same online. And creating scarcity seems to boost value in the resale market!
Moving fandom monetization to digital
Last week, I suggested that SVOD library pruning could revive consumer interest in owning movies. However, there is one behavior that has never really left. Movie superfans love to go deep into the object of their passion and own something unique relating to that movie. In the past, they could express their interest by purchasing limited edition DVDs with director’s cuts, narration, and out-takes. They could also buy merchandise like movie posters, T-shirts, and action figures. Companies like Disney leaned into this behavior by creating artificial scarcity by offering VHS tapes and DVDs of beloved movies for a limited time.
In the digital world, it has been harder to replicate the approach. People can certainly buy digital movies, but owning a limited-edition movie experience they can also resell has been difficult to replicate. Bundling the movie with other digital collectibles has also been difficult to execute.
The digital world is finally beginning to catch up to the physical world courtesy of Web3 technology. The release of the Superman Web3 Movie Experience starting on June 9 will allow fans of the 1978 movie to own a unique expression of the classic film.
Two versions available for a very limited time
Warner Bros. Home Entertainment, working with blockchain media network Eluvio, will release two versions of the Superman Web3 Movie experience:
The Standard edition includes the Superman: The Movie Theatrical version, previously released special features, and an image gallery with stills and behind-the-scenes pictures for $30.
The premium edition includes everything in the standard edition plus directors and extended TV cuts of the movie and a more extensive image gallery. The edition comes in three separately available variations – Truth, Justice, and Hope – with a rendering of Christopher Reeves as Superman by one of three DC artists. It costs $100.
Both editions include access to the video in 4K HDR resolution via a dynamic menu based on iconic locations from the film. Owners can sell the experience in a community marketplace. They will also receive a voucher code for one of three randomly selected DC3 Super Power Pack: Series Superman comics from the DC NFT Marketplace.
Warner Bros. is creating scarcity by tightly constraining the availability of each edition. The Standard edition is available for one week starting June 9 at 8 AM Eastern and ending June 16 at 7:59 AM. The Premium edition will only be available for 24 hours, from 8 AM Eastern on June 9 until 7:59 AM on June 10. However, some Warner Bros. NFT owners will get early access to purchase either edition on June 8:
- DC Bat Cowl NFT owners at 8 AM
- DC3 holders at 11 AM
- The Lord of the Rings Web3 Movie Experience holders at 2:00 PM.
Does creating artificial scarcity increase the value of movie merchandise?
There is evidence that constraining the availability of these special movie editions does make them more valuable, at least within the community of movie enthusiasts. In October 2022, Warner Bros. released The Lord of the Rings: The Fellowship of the Ring Extended Edition Web3 Movie Experience in Premiere Epic and Mystery Editions leveraging the Eluvio Content Fabric.
The Premiere Epic Edition sold out the 999 copies made available at $100 each, and now some owners are selling their copies on the Movieverse market. According to the site, there have been 622 secondary sales generating $114,700.58, with an average price of $184.41. So, those willing to part with their Premiere Epic Edition seem to be making a decent return on their $100 investment.
Interestingly, Warner Bros. numbered each copy of the Epic Edition, and those that sold first, with the lowest token ID, could be worth more. For example, the fourth copy sold is currently available for $9,999.00, while the 866th is offered at $115. However, it’s unclear if anyone will pay the much higher price.
The Premiere Mystery Edition is still available for $30 and includes the extended edition movie, 8+ hours of special features, and image galleries. The “mystery” of each purchase is that the buyer will receive one of three randomly allocated versions of the experience, including unique AR collectibles and a custom navigation menu based on one of the following:
- The Shire™ (Common)
- Rivendell™ (Uncommon)
- Mines of Moria™ (Rare)
When the Mystery edition sells out, it will be interesting to see how much of a premium the rare and uncommon versions command over the common in the resale market.
