The mere mention of NFTs elicits two very drastic reactions.
For some, the recent innovation sets a new precedent for digital content. For others, it is a fad that will dwindle away in the next couple of years. TMB and Theta Labs’ recent collaboration provides an example that leans toward the former.
TMB’s Pet Collective NFT launch follows a highly successful NFT collaboration with FailArmy that sold out in one second.
Pet Collective is one of the largest animal-based media brands with over 47 million social media followers. For their latest collection of NFTs, TMB curated a collection of sweet and hysterical animal moments found around the internet. The collectibles are available for purchase on Theta Labs marketplace, ThetaDrop.
To get the inside scoop on TMB, Theta Labs, and all things NFTs, we chatted with Jacob Salamon, Vice President, Business Development, TMB. We discussed TMBs’ new NFT collection, the benefits NFTs and Web3 could have for digital media companies, revenue diversification, and more.
Andrew Byrd: Can you tell me about the process of collaborating with Theta Labs and Pet Collective to create these exclusive NFT collectibles?
Jacob Salamon: TMB and Theta Labs have forged a multi-platform partnership, including bringing our linear FailArmy and The Pet Collective streaming channels to Theta’s decentralized video network.
We also partnered to launch our two first NFT collections, including our recent drop for The Pet Collective last Friday. We worked closely with Theta to identify the best viral user-generated clips from our library, design fun challenges for collectors, and promote the drop to our respective communities. There is a lot of trust and collaboration between our teams, which makes for a wonderful and productive partnership.
AB: Before TMB and Theta Labs collaborated for the Pet Collective NFT collection, you created an NFT for FailArmy that sold out in one second. Can you tell me why your company decided that investing in NFTs was good for your brand?
JS: Blockchain and NFTs represent a number of unique opportunities for media and entertainment companies, but TMB was uniquely positioned to experiment with NFTs as it pertains to user-generated content. Through the acquisition of Jukin Media, TMB has a stronghold in representing viral user-generated clips from across the Internet.
Our hypothesis was collectors might not only be interested in purchasing fine art NFTs, but they might also be interested in owning viral ‘moments captured by everyday people around the world.
Given the iconic nature of our FailArmy and Pet Collective brands to curate the best of the Web, we were excited to see if minting and selling NFTs could be an innovative way to participate in Web3, give collectors fun new content for their wallets, and earn incremental income for the video owners we represent.
AB: You were quoted saying that your company is “constantly looking for new ways to push the boundaries of next-generation digital storytelling.” Do you think having well-thought-out and creative assets in your marketing is important for the overall user experience?
JS: Absolutely! Every touch point with our brands is a marketing opportunity, and we work hard to ensure our marketing assets — whether for our NFT drops, commerce products, or anything else — are fresh and relevant for our audience.
AB: It seems that one of the core tenets of your company is to help your clients to monetize their content. In a time when publishers are looking to diversify their revenue streams, do you think investing in NFTs could be a beneficial solution? What other advice would you give to companies to further diversify their revenue?
JS: We’ve licensed user-generated clips for clients in over 100 countries, and to date have paid our content creators over $35M in royalties. So for us, we’re proud of not only what we can offer our advertising and publishing partners, but also the revenue we generate for the content creators and everyday people we represent, who are capturing real moments that audiences across the world relate to.
Our content team sources the newest viral videos on the Web and is refreshing our library daily to offer our advertising partners the most inspiring and engaging content for their projects. So this idea of curating the best user-generated content and finding ways of monetizing it wasn’t new, but NFTs offered a unique new opportunity.
If your brand has a unique set of assets, interesting heritage and history, or a set of premium content behind a paywall, NFTs offer an interesting opportunity to monetize in a new way.
NFTs aren’t a perfect fit for everyone, so it’d be tough to make a blanket recommendation for other media businesses. But if your brand has a unique set of assets, interesting heritage and history, or a set of premium content behind a paywall, NFTs offer an interesting opportunity to monetize in a new way.
Outside NFTs, I think media companies can look at revenue diversification on a number of different vectors: core lines of business, international, new trends, commerce, and syndication. Every business is different, of course, but wearing an entrepreneurial hat and investigating where new opportunities might be waiting is a fun and productive way to uncover new streams of revenue.
AB: Your company has praised the benefits of Theta Labs’ blockchain technology, ThetaDrop, which helps you leverage viral moments from the internet into NFTs. Why was it important for you to invest in this technology?
JS: We take our clip representation responsibilities very seriously. What this means, specifically, is we are always searching for new ways to earn revenue for our video owners, whether that be in licensing footage for use in national advertisements, in entertainment, for news, or beyond.
The confluence of trends in Web3, crypto, and NFTs presented a unique opportunity to monetize clips in a new and exciting way. Theta’s specific focus on video in the Web3 space made them a perfect partner to dip our toe in the waters — to learn about the benefits and value of blockchain — while earning incremental income for our video owners.
AB: Many people in the ad tech industry believe that NFTs and Web3 assets are a fad. What would you tell the naysayers about the benefits of this particular technology and market?
JS: While there is certainly turbulence in this market today, we believe in the long-term promise of the technology and believe that those who invest and stay the course will benefit 5-10 years from now. The underlying fundamentals of Web3 and blockchain are technologies that I believe are ultimately here to stay.
As for how these changing trends in crypto value have affected the market, I think they’ve led to a healthy recalibration of prices. In line with these trends, our NFTs were priced at $20 and $25, ensuring everyday collectors had an opportunity to participate. We’ve even seen new primary NFT drops that are completely free, which is another exciting and positive trend for consumers.
To the naysayers, I’d say consider entertaining a less stratified opinion about what Web3 and NFTs are and aren’t. Simply put, they are an agnostic set of technologies that enable decentralization, efficiency, proof-of-ownership, unlocking access, and more. How they get used, how they might benefit business and consumers, and what future they hold is all to be seen. Regardless of the fad status, we think there’s something there.