2021 turned out to be a breakout year for non-fungible tokens (NFTs) and while sports has been viewed as one of the key areas where we can expect to see a rise in NFT popularity this year, Deloitte predicts that NFTs for sports media in India alone, will generate more than $2 billion (roughly Rs. 15,085 crore) in transactions in 2022 — which is about double the figure for 2021. Deloitte's Expertise, Media, and Telecommunications (TMT) Predictions 2022 forecasts that given the craze for cricket, cinema in the country, it won't be long before an NFT marketplace shoots beyond the $1 billion (roughly Rs. 7,545 crore) valuation mark.
"In 2022, the most common and lucrative application of NFTs in the sports industry will likely be the sale of limited-edition video clips of sporting moments or player cards," claims Deloitte in its report. The report goes on to highlight that in 2022, platforms and rights creators are likely to
continue testing different ownership models to determine the best balance of consumer demand and maintaining intellectual property rights (IPR) that respect existing third-party rights over a particular digital asset.
"So far, the offer of limited IPR within sports NFTs has not dampened appetite, suggesting that demand may well be driven by the ability to demonstrate status," the report states.
Recent significant developments in the Indian NFT market such as major film and cricket personalities taking the first steps to benefit from the opportunities presented by digital collections have also been mentioned in the TMT report.
Bollywood star Amitabh Bachchan's NFTs fetched nearly $1 million (roughly Rs. 7.5 crore) at the country's first such auction and is cited as an example of how the space is becoming increasingly more exciting in India.
"With more than 500 million cricket fans in India, and Bollywood and regional cinemas swaying over the Indian populace, an NFT marketplace for just cinema and sports in India has the potential to cross $1
billion (roughly Rs. 7,545 crore) in value in the near future (subject to conducive regulatory policies)," states Deloitte.
However, Deloitte's 150-page document noted that supportive regulatory policies are needed to fully exploit the potential of the global NFT market. “Given the global trends and the pending policy/regulatory framework of the Indian government in this area, sooner or later an NFT-based market for movies and sports will become a reality in India,” Deloitte forecasts.
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