According to the Shark Tank star, NFT ticketing offers are a more practical use case than investment in digital art.
Mark Cuban, the billionaire owner of the NBA’s Dallas Mavericks, spoke about his quest to take advantage of the NFT world to disrupt businesses. On an episode of The Delfi Podcast, Cuban said:
“What are applications that this new technology can turn upside down? so that I can disrupt an industry and make a f*ck load of money… that is the opportunity I look for.”
Giving a real-life example of what he’s working on, Cuban spoke about implementing an NFT ticketing system to watch the Mavericks. He sees several benefits, including retaining royalty rights on every ticket resold.
NFT ticketing is a way to disrupt the traditional model
NFT ticketing is a golden opportunity to disrupt the conventional ticketing model. As mentioned, from the Mavericks’ point of view, this could be advantageous in the team getting paid each time someone sells a ticket on.
“We’re trying to find a good option for turning our tickets into NFTs. We want to be able to find ways so that, not only can our consumers, our fans, buy tickets and resell them, but we continue to make royalty money on them.”
However, Cuban was keen to stress that this isn’t as easy as just implementing an NFT ticketing system. There are also factors regarding game theory to consider. This would involve optimizing the system so that all stakeholders can glean benefits.
“Out of 41 home games before playoffs… there’s one or two high demand games and there’s a lot of season ticket holders that’ll sell those one or two games to try to pay for their whole season ticket package. How do we balance all those things to maximise our revenue and maximize the value for season ticket holders as well?”
Nonetheless, in terms of mass-market disruption, NFT ticketing has the potential to run rings around NFT artwork, which continues to polarize opinion.
The jury’s still out on investing in digital art
NFT artwork has caught the public’s imagination in recent times. In many cases, especially among the uninitiated, the feedback is negative.
In part, this is because of the astronomical sums involved with high-profile sales. There’s also something to be said about the zero cost replicability of any piece. While advocates say it’s the proof of ownership that justifies the price, in a digital world of infinite perfect copies, that argument carries less weight.
For those reasons, NFT artwork has an uphill battle in convincing people that it is a better version of real-world physical art. However, NFT tickets have a use case that isn’t as subjective, making this concept a mass-market winner.