Demystifying the Consumer Metaverse - JANUARY 2023 - In collaboration with Accenture
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In collaboration with Accenture Demystifying the Consumer Metaverse JANUARY 2023
Contents
Disclaimer
This document is published by the World Economic
Forum as a contribution to a project, insight area
or interaction. The findings, interpretations and
conclusions expressed herein are a result of a
collaborative process facilitated and endorsed by
the World Economic Forum but whose results do
not necessarily represent the views of the World
Economic Forum, nor the entirety of its Members,
Partners or other stakeholders.
© 2023 World Economic Forum. All rights reserved.
No part of this publication may be reproduced or
transmitted in any form or by any means, including
Foreword 3 1 D
ecoding the metaverse, Appendix: Economic models photocopying and recording, or by any information
web3 and Web 3.0 6 in the consumer metaverse 30 storage and retrieval system.
Executive summary 4
2 Value creation in the consumer metaverse 15 Glossary 48 Images: Getty Images, Unsplash
Initiative overview 5
3 M
etaverse economic models 21 Contributors 49
4 Future value horizons in the metaverse 24 Endnotes 52
Conclusion 29
Demystifying the Consumer Metaverse Contents 2
Foreword Defining and building
the metaverse
The governance track focuses on frameworks
that prevent potential harms and mitigate
emerging risks while ensuring equity,
While some economic models will simply
be replicated from the existing internet to
metaverse environments, complemented by a
privacy, security, safety and interoperability. certain level of immersion or interaction, others
The next era of the internet is taking shape, The first output of the track is focused on will disrupt entire industries and generate brand
with the convergence of technologies forging interoperability, which is founded on the ability new revenue streams. It is our hope that this
Cathy Li the metaverse, an immersive, interoperable, for users to participate across environments paper will educate and guide organizations to
Head, Media, Entertainment and synchronous virtual world. Though a
and Sport and Member of and technologies, for data to circulate freely stable and informed decision-making so that
the Executive Committee,
single standard definition for the metaverse and securely, and for systems to exchange value creation is equitable and sustainable for all.
World Economic Forum has yet to emerge, experts agree that this information seamlessly.
new age of the internet will disrupt and
transform current social and economic Meanwhile, the value creation track looks
structures. From more immersive, empathetic at the opportunities in consumer, industrial
social experiences to more universal access and enterprise metaverses and researches
to services and education, the metaverse the considerations for access, inclusion,
presents momentous opportunity, but sustainability and well-being that will come
Kevin Collins also brings about new challenges. with its development.
Managing Director and
Global Software and It is within this context that in May 2022,
Platforms Lead, Accenture This insight report, written by the World
the World Economic Forum launched the Economic Forum in collaboration with
initiative Defining and Building the Metaverse. Accenture, is focused on consumer
The initiative has brought together a global, applications, exploring the key components,
multistakeholder group of more than 100 foundation technologies, roles and paths
experts in academia, civil society, government, to economic value and growth. Due to their
technology and business to help shape a experimentation, incubation and creation of
future metaverse that is equitable, safe and new behaviours and business models, the work
economically viable. The initiative does so via of consumer organizations can serve to inspire
two tracks: governance, and economic and and illuminate more changes to come.
social value creation, as the interdependent
topics that the public and private sectors
must work together on in order to responsibly
activate the metaverse.
Demystifying the Consumer Metaverse Contents 3
Executive The metaverse is expected to have a wide-
ranging impact on consumers’ attitudes and
The key question of this report is: What makes
up the metaverse and how can organizations
– The role of individual creators will be
amplified in the metaverse. Technologies
summary behaviours, impacting how, where and when
they will want to play, learn, earn and socialize
in their existing reality or newly established
and individuals create equitable economic
value through it in a consumer context?
such as AI and blockchain, will support
this amplification. An evolving creator
economy will influence value distribution in
augmented and virtual realities. Consequently, Drawing on expertise in retail, media and the metaverse greatly and offer far-reaching
The consumer metaverse organizations will need to redefine their entertainment, consumer packaged goods, opportunities for businesses and individuals,
brand image, shift their relationship model real estate, banking and communications, but it will also pose challenges when
offers a myriad of economic
with consumers and change the way they as well as technology innovation, web3, approached incorrectly.
opportunities and challenges monetize products and services in order to environmental, social and governance
create true consumer value. They will likely (ESG), and economics experts, this insight – Eight economic models were identified
move from offering products and services to report presents an interdisciplinary view to drive value in the metaverse, including
being metaverse participants and providers, of the end-user experience layer of the digital products and assets, access and
introducing engaging experiences and metaverse, capturing the present technology influence, immersive commerce, payments
building communities in order to create landscape and related economic models and currency, asset monetization, advertising
meaning and fulfilment for their customers. that may pave the way for future growth. and marketing, the creator economy, and
metaverse-native services.
The World Economic Forum has launched A selection of this paper’s key insights
the Defining and Building the Metaverse is outlined in the following: – A selection of six drivers of metaverse
initiative to help explore and qualify the growth and adoption were identified,
metaverse’s social and economic opportunities – While it currently is difficult to define including metaverse-ready networks,
and challenges while aiming to explore and the metaverse, its main distinguishing realistic avatars, infrastructure, governance,
create a holistic governance framework. components are highlighted to be social standards and regulation, ownership and
The initiative does so within two tracks, the interaction, identity, multilateral value artificial intelligence.
value creation and governance track. exchange and distribution, and a degree
of immersion. Given the breadth of the metaverse topic,
While the broader initiative explores the this report confines itself to the consumer
metaverse from multiple angles and dives – Impacted by wider society – organizations metaverse and its economic challenges and
into areas from interoperability and identity and individuals can take on one or opportunities. Further work within this value
to social value, this report aims to give a multiple roles in the metaverse, from being creation track will explore the enterprise and
holistic introduction to the consumer-facing participants to creators or providers. industrial metaverse, as well as the metaverse
metaverse and its economic opportunities. in the context of education, healthcare,
life sciences, infrastructure and cities.
Demystifying the Consumer Metaverse Contents 4
Defining and Building the Metaverse
Initiative overview
The consumer metaverse The industrial metaverse Social value in the metaverse The future of consumer, industrial
Value creation
Exploration of the key components, Exploration of early-stage use Exploration of social opportunities and enterprise metaverses
foundational technologies, roles and cases, foundational technologies and challenges in the context of the Expanding on research and analysis
paths to economic value creation and and future potential related to metaverse as it relates to diversity, from 2022, the initiative will look at
growth in the consumer metaverse. the industrial metaverse. equity and inclusion, as well as how to activate the economic fly
access and well-being. wheel of the metaverse, through the
Coming up: identification of new value chains and
Explore the frontier future growth scenarios
technologies in healthcare,
education and cities
2022 2023 2024
Privacy, security and safety Governance white paper
Exploration of target states, capability Identity Analysis of the material shared
Interoperability gaps, potential risks, solutions and Exploration of target states, capability across the exploratory series on
Governance
Exploration of target states, opportunities related to privacy, security gaps, potential risks, solutions interoperability, privacy, security, safety
capability gaps, potential risks, and safety. These will be explored in and opportunities of technical and identity bolstered by a supporting
solutions and opportunities related conjunction with notice and consent and functional identity. Additional governance white paper, which can
to metaverse technical, usage, and structures, anonymity, and the right to topics to explore include physical, be used by metaverse stakeholders to
jurisdictional interoperability. be forgotten, among other topics. emotional and mental well-being. create a human-first metaverse.
Demystifying the Consumer Metaverse Contents 5
1 Decoding the metaverse,
web3 and Web 3.0
Demystifying the Consumer Metaverse Contents 6
1 Decoding the metaverse, web3 and Web 3.0 The prime example of groundbreaking FIGURE 1
technological change is the internet. While
Evolution of the internet
Introduction the first versions of the internet (internet of
data) solely served the purpose of exchanging
information, later iterations introduced the
1990s
The introduction of innovative concepts of social interaction, entertainment,
Internet of data
commerce (internet of people) and direct
technologies regularly changes interconnection of physical objects, creating
Made vast amounts of
and shapes the world’s social and information available for
connected worlds (internet of things).
people to access anywhere,
economic structures, presenting anytime and search with ease
The current iteration of the internet, Web
momentous opportunities 3.0 (internet of place and ownership),
and pivotal challenges. evolves its predecessors towards a more
intuitive interaction with technology. 2000s
It reimagines the connection between Internet of people
the virtual and the physical world while Connected people to people
emphasizing ownership of identity and across vast distances and
assets, enhancing the way humans conduct brought virtual social life to
their private, public and professional lives. the forefront
While exact definitions are widely discussed,
Web 3.0, web3 and the metaverse are
2010s
expected to create the next wave of significant
Internet of things
technological, and hence economic and
Connected phones,
societal change.
devices and machines
together, extending the
digital world for people
Web 3.0
Demystifying the Consumer Metaverse Contents 7
FIGURE 2
Web 3.0 as defined by Accenture
Consumer and community places
Public places
Places that belong to communities
The internet of place circled around certain norms.
This new evolution of the internet Hybrid places
introduces a shift to 3D as a method
for navigation, social interaction, Private places
engagement and insights. Places with exclusive access for
selected users and groups.
Enterprise and industrial places
Web 3.0
Digital wallets
Digital assets
The internet of ownership Value distribution of virtual/physical Tokens
goods through tokens in an economy.
Ownership reimagines how individuals and Data
organizations handle data, create, learn,
shop, have fun, interact and collaborate. Identity
It enables an internet built on the ability Virtual representation
Self-expression and authentication
to own one’s identity and assets.
in the shape of individual assets.
Digital identity
Demystifying the Consumer Metaverse Contents 8
Decoding the metaverse environments that offer a certain degree of
interoperability and create meaning and user
In a quest to quantify the metaverse’s future A massively scaled and interoperable
fulfilment through value exchange between
impact, the metaverse is predicted to be worth network of real-time rendered 3D
realities across virtual and physical worlds.
$6-13 trillion by 2030,1 with global revenues virtual worlds that can be experienced
expected to reach $800 billion by 2024.2 synchronously [...] with an individual sense
web3 and the metaverse of presence, and with continuity of data,
Today’s metaverse is an expanding and such as identity, history, entitlements,
The terms web3 and the metaverse are often
evolving proposition that will be re-defined objects, communications, and payments.
used interchangeably, though they refer to two
perpetually. A “true” metaverse does not
different, albeit related, concepts. Matthew Ball, The Metaverse
exist yet, and mass adoption will most likely
be driven by advances in hardware, software While this report does not aim to give an
and processing power, enabling density of exhaustive definition of the two terms or define
population and high levels of interaction in their overlap, it will give a brief summary of the
virtual worlds. Hence, formulating an all- public’s understanding of these concepts and … virtual worlds are generally ‘composed
encompassing definition for the metaverse is their delineation. of a few distinct elements: a society or
rather difficult at this point in time. However, it grouping of humans; another world or reality
is acknowledged that there is a need to define Web 3.0, referenced earlier, describes the third
involving events, identity, rules and things
the metaverse’s components to help identify stage of the internet. It is an evolution focused
that are deemed to be in some way real;
its fabric and inform investment decisions. on distributing systems to create a more secure,
and an ongoing transfer of value between
transparent and open internet experience the two, which grows individual and group
Guided through conversations with metaverse that enables direct interactions between fulfilment, wealth and meaning.
thought leaders and analysis of existing users and their peers without intermediaries.
publications, the World Economic Forum Decentralization in this frame is achieved through Herman Narula, Virtual Society
highlights social interaction, identity, multilateral web3, an emerging portfolio of decentralized
value exchange and distribution, and a degree technologies (such as blockchain and its
of immersion as the main components of applications), protocols and standards, which
metaverse worlds, which combined with a set establish provenance, veracity and value of data.
of foundational technologies, immersive content
and experiences make the metaverse a new Even though the metaverse and web3 are not
iteration of digital change, that will disrupt value interchangeable, use cases often employ both
chains, businesses and entire industries. It is concepts. Hence, in the frame of the Defining
noted that the metaverse won’t be comprised and Building the Metaverse initiative, both
of one single entity but many different concepts will be taken into consideration when
worlds in either centralized or decentralized discussing economic and social implications.
Demystifying the Consumer Metaverse Contents 9
1 Decoding the metaverse, web3 and Web 3.0 FIGURE 3
Select the layers
Layers of value creation in the metaverse
The metaverse to discover more
stack The experience layer allows end-users to
consume, exchange, transact and create
Identity, value distribution, social interaction content, products and services. Drivers of this
and immersion are key components of the layer include content and devices enabling
metaverse and are enabled by an interplay 1 Experience immersive or augmented game-like experiences.
of technologies, capabilities and human
behaviour. Figure 3 aims to outline this Examples:
interplay as the “metaverse stack”, layers
of the metaverse in which value can be 2 Economy
realized. Policy, security and governance
should ensure the equitable realization of
the entirety of the stack.
3 Digital identity
Software and
4
platforms
Infrastructure
5
and network
Demystifying the Consumer Metaverse Contents 101 Decoding the metaverse, web3 and Web 3.0 FIGURE 4
Foundational technologies and capabilities
Foundational
technologies Next to 2D user interfaces, XR (including
and capabilities Extended reality (XR) virtual, augmented and mixed reality) lends
the “form” to the metaverse while making
driving the the “internet of place” a reality. It enables
meaningful and immersive engagement and
expansion of Blockchain
augments the physical world regardless of user
location. Although the XR market is expected
the metaverse
to surpass $250 billion by 20284 the hardware
yet needs improvement in terms of cost and
usability in order to fuel mass adoption.
The previously outlined metaverse stack
is enabled through a set of foundational Artificial intelligence (AI)
technologies and capabilities. The metaverse
market is expected to denote a compound
annual growth rate of 39.8% from 2022 to
2030,3 which may signal a promising market
Cloud and edge
unfolding the possibilities of new innovations Stack layer
and business models. Understanding
computing
the metaverse’s technologies and their
implications on future developments, from Experience
experiences to operations and adoption, is
Economy
vital to foresee value creation in a consumer 5G (6G)
context. Figure 4 outlines and describes a Digital identity
selection of these metaverse technologies.
Software and platforms
Digital twins Infrastructure and network
Demystifying the Consumer Metaverse Contents 111 Decoding the metaverse, web3 and Web 3.0
Roles in the Society Participants Creators Providers
metaverse The communities that creators, participants and
providers live and engage in. Society includes
In the metaverse, individuals and organizations the public and private sector and its individual
take on the roles of society, participants, and organizational bodies on a local and global
creators and providers, bringing the metaverse level. Not only does society establish social
stack to life. Within these roles they constantly norms, it also serves a regulatory obligation that
exchange value. Even though this value replicates to the metaverse.
exchange is use-case dependent, each role
is integral to the fabric of the metaverse. Examples: Communities, public
and private organizations
Select the tabs
Stack layers
to discover more
Experience
Economy
Digital identity
Software and platforms
Infrastructure and network
Demystifying the Consumer Metaverse Contents 121 Decoding the metaverse, web3 and Web 3.0 After a pandemic bump, interest in gaming has Collaboration is key to growth Creators as the primary
continued to skyrocket. Video game revenue
source of content
The gaming is projected to show an annual growth rate of
7.7%, resulting in a projected market volume of
Fuelled through the introduction of
XR and web3 technologies such as User-generated content (UGC) has been a
industry as $285 billion by 2027.10 blockchain, traditional business models of
gaming companies are being challenged.
vital building block of the gaming industry for
years. It provides virtual environments with
the pioneer The gaming industry and the metaverse share
an inherent experiential, social, transactional
Cryptocurrencies, non-fungible tokens (NFTs),
and GameFi models are only some of the
personality, authenticity and scale, acting as a
steady stream of new, engaging characters and
in virtualized and sometimes virtual nature, with gameplay
at the heart of its consumer value. Players
metaverse concepts that will impact gaming. content to fill the gaps between official content
releases or even replace them altogether.
world-building in the gaming industry, such as Epic Games
and Roblox, are pioneering ideas of what the
Conversely, consumer brands operating in
the metaverse can draw inspiration from An expanding creator economy, in which
metaverse could be, both in terms of engaging gaming company experiences in how to tools for creation are widely available and
content and attracting audiences. Seen in the create unique and engaging touchpoints. easy to use, is essential to ensuring a steady
widely publicized virtual concerts and brand flow of creativity into virtual worlds with new,
collaborations, these platforms engage users to engaging and personalized content that will
develop their digital identities and enable them inspire and retain users and ensure diverse
to express these identities through collectables and inclusive experiences. The metaverse
and skins while offering them a virtual home in brings this model a step further by enabling
their communities. creator economies in which creators can
monetize their IP in perpetuity, such as
The gaming industry has essentially moulded through royalties.
users for the metaverse and will continue to lead
and help support development in perpetuity. Organizations inside and outside of the gaming
industry are expected to empower and uplift
Just as gaming shapes our idea of the creators in the form of content generation but
metaverse, the metaverse also impacts the also in building long-lasting communities that
gaming industry. bring creators to the forefront.
Demystifying the Consumer Metaverse Contents 131 Decoding the metaverse, web3 and Web 3.0 What valuable lessons from gaming light the path ahead?
Implications Engage through play Creators and IP rights
of gamified VR gaming is expected to grow at a compound Content in the metaverse will be increasingly
experiences
annual growth rate (CAGR) of 32.7% over the built by individual creators, requiring the
forecast period 2021-202711 and gamified development of new ways of managing
commerce is booming. “Play” has led the first content, IP rights and ownership as
wave of metaverse adoption, with companies important value drivers of leading metaverse
With an aim to create responsible gaming and shifting from selling products and services to experiences. Seen by many as a “prototype”
metaverse worlds, certain considerations need offering experiences. of the metaverse, the platform Second Life
to be taken into account when designing both has reportedly paid creators $80 million
virtual worlds and experiences. in 2021 while reporting 64.7 million active
Next generation of users are users on their platform in the same year.
A growing data economy will elevate the innate gamers
need for privacy and security, while an influx
Gamers will inherit the metaverse: 54% of Social pays
of virtual assets will lead to the growing need
Roblox participants as of 2020 are younger
for asset management. Furthermore, studies Engagement is higher for metaverse players
than 1312 and this demographic highlights
reveal a correlation between microtransactions, who play to socialize (over two extra hours
gaming’s future potential, with the users
gaming and gambling disorders. played/month), and players who socialize
of tomorrow being intrinsically gamers. As
the metaverse of tomorrow is designed, spend more (over 4-5% spent every six
users will expect frictionless, non-intrusive months).13 While platforms like Roblox and
and socially engaging experiences to play, Fortnite are becoming the most sought-after
share, learn and socialize. virtual destinations for socializing, branded
virtual spaces and experiences on these
platforms are gaining traction for advertisers.
Roblox recently stated that it would soon
allow brands to directly purchase in-game
advertising and launch advertisement
experiences, providing an opportunity for
brands and businesses eager to target a
tech-savvy young audience.
Demystifying the Consumer Metaverse Contents 142 Value creation in the
consumer metaverse
Demystifying the Consumer Metaverse Contents 152 Value creation in the consumer metaverse The metaverse isn’t conducive to a linear Further research in Roblox’s recent 2022
consumer journey. The days of step-by-step Metaverse Fashion Trends report highlights
Introduction journey models are over. Humans don’t follow
linear paths to purchase, predictable patterns
that one attitude that most Gen Z shares is an
ambition to embrace their digital identities and
of behaviour, or set attitudes. They are driven the liking of brands that support this identity
by their in-the-moment intent. The next step
from awareness is not always engagement.
Brand loyalty doesn’t require purchase. This
creation.15 These findings highlight that just as
in the current version of the internet, consumer
value will not be generated universally but will
61%
of consumers look forward to interacting
could not be truer in the metaverse, where have to be strongly aligned with the target
with family and friends in the metaverse
immersive experiences and fluid interactions group’s wants and needs, using consumer
allow brands to develop a deeper sense of data in a responsible manner that puts the
relevance in their consumers’ day-to-day. human right for privacy at its centre.
Brands will find new ways to authentically play
a role in their consumers’ specific missions,
key occasions and magic moments.
A recent report, Gen Z and the Metaverse,
52%
by Nokia and Ipsos, implies that “consumer
value” in the metaverse will look different for
different personality profiles. As highlighted
in the report, solidarity searchers, which of consumers believe that the metaverse will
are described as rather introverted, will find strengthen the connection to their favourite brand
the most value in the metaverse, offering
them heightened convenience, allowing
them to complete mundane “social chores”,
such as clothes shopping, from home.
In contrast, citizens, which the research
describes as less tech-forward, will find
the most value in the socialization and
entertainment aspects of the metaverse.14
Source: Accenture, Accenture
51%
Consumer Metaverse Study (Insights of consumers look forward to creating
from ~9,000 global consumers), 2023. and monetizing content in the metaverse
Demystifying the Consumer Metaverse Contents 162 Value creation in the consumer metaverse Everyone born today is an innate gamer:
iPad natives and gamers native to platforms
Drivers of such as Roblox and Fortnite will enter the
working population in 5-10 years. This
consumer audience has grown up expecting the world
to be interactive.
adoption Technological progress: As the underlying
technologies required for the metaverse
continue to evolve (such as game engines,
Virtual reality (VR)/augmented reality (AR)
small and power-efficient XR-processors and
reaching mass market potential: This will
XR optics), integrated virtual world platforms
open up the devices to millions of consumers
will become easier to use, more capable and
and developers, ensuring a price point and
easier to build on.
feature set that meets consumer expectations.
Other factors include the maturation of digital
A workforce in the metaverse: When
wallets and tokens, the evolution of payment
enterprises accelerate metaverse adoption
rails through regulatory action, advancements
and introduce immersive technologies into
in network edge computing, low-latency cloud
the workforce, adoption will transition from
computing, the establishment of a culture
employee to consumer use.
of ownership and market-wide adoption of
interoperability standards. These factors and
Network effects: The development of net-
more can be explored further in chapter 4.
new offerings, achieved as big tech brands and
creators create new experiences, products and
services that are more compelling, unique and
convenient. Today there are only a few must-
play games and experiences – for example,
location-based AR games and AR commerce.
Demystifying the Consumer Metaverse Contents 172 Value creation in the consumer metaverse Experience revolves around the distribution
Media, entertainment of interconnected, omnichannel content
Successful and sports beyond geographic boundaries and
capacity limits. Similar to gaming, immersive
players will experiences will frequently occur in media,
entertainment and sports (MES), with the
choose the future industry playing a pivotal role as a content
and distribution engine for virtual worlds
they build for Communications
that engage with users in entirely new
ways. Companies in MES are expected
tomorrow, today to use metaverse technologies to build
personalized 3D experiences in media and
film, deliver new forms of advertising and
ad consumption, or transform the fan and
audience experience in sports, concerts
Select the tabs and theme parks. As a content provider,
to discover more
Financial services MES will help to deliver personalized
experiences across all forms of distribution
based on users’ unique identities.
Real estate
Retail and consumer
packaged goods
(CPGs)
Demystifying the Consumer Metaverse Contents 182 Value creation in the consumer metaverse Changing the paradigm of artistic creation, While benefiting from the threefold value USE CASE
creators now have a way to ensure visibility, distribution, it is both participant’s and
Roblox
The metaverse voice and economic share. Blockchain
applications allow creators to monetize
provider’s obligation to ensure equitable
treatment of creators while keeping transaction
economy talent independently of centralized hosting
platforms. While they do not provide proof
fees reasonable and at a minimum.
that a particular creation, was in fact The creator economy plays a significant role
generated by the original creator, they provide in the broader metaverse economy, and it is
Far beyond opening the door to virtual
mechanisms for transferring ownership of acknowledged that a wide range of factors –
gameplay, the metaverse expands societies’
particular assets. Advancements in AI are from tokenomics to stable currencies and
reality and introduces environments in which
also likely to play a significant role in the fair voting rights – contribute to a stable and
every consumer can take an active role in
creation of the metaverse, such as putting equitable metaverse economy. The sheer
creating, shaping and distributing value. The
design tools into the hands of consumers – number of voices to be considered makes for
application of the metaverse and web3 is set to
turning metaverse participants into creators. a strenuous balancing process and a need for
herald a new era in content and world creation
a set of tools and rules to be established.
and drive immense economic opportunity,
Businesses (participants and providers) play a
thus making the creator economy a vital part
vocal role in uplifting a diverse set of creators
of the overall metaverse economy. Moreover,
while ensuring creator tools and features Roblox’s immersive marketplaces are
this shift presents an opportunity to address
are available and accessible to everyone. scaling towards becoming fully user-
flaws of a current Web 2.0 centralized system
generated, with 90% of avatar items
that sees the majority of value created fall into
Creators, participants and providers currently from the community.
the hands of a few centralized entities. Web
introduce a symbiotic value exchange,
3.0 provides an opportunity to reinvent the
which opens up new possibilities for Roblox is introducing new mechanisms
way value is generated and shared among a
equitable and fair digital economies. for the community to build sustainable
diverse set of creators, brands and businesses.
businesses, including giving creators full
Brands and platform providers benefit control over the scarcity of their items and
To achieve this goal, it is important that
from enabling and amplifying creators, allowing all users to resell or trade items.16
the metaverse is designed with a value-
as they are at the pulse of consumer
led economic mindset that learns from past Future papers in the frame of this initiative aim to
sentiment. The creator economy goes far
mistakes and encourages a sustainable investigate how to activate the economic flywheel of the
beyond amplifying content creation and metaverse and build on the idea of value distribution.
and fair economic climate for creators in
will be transformative for the metaverse, as
this new era of authenticated ownership.
creators are in a position to reinvent and
challenge the status quo and inherently
accelerate metaverse adoption speed.
Demystifying the Consumer Metaverse Contents 192 Value creation in the consumer metaverse Value distribution by design FIGURE 5
The value-add economy
Ensuring fair
Assumption: An equitable and fair system tracks each
individual and new creation. This requires:
value distribution – Platforms or systems that allow users to easily find and
re-use existing creations
in the metaverse – Transparency on the re-use of existing ideas and
1
mechanisms to credit the initial creator
Initial
Mechanics for transparent and fair value
– Fair value distribution across the entire value chain creation
distribution in the metaverse will be essential
6 2
to ensure a sustainable economy. While (credit to all parties)
in Web 2.0, IP attribution to creators was Incentive to create Other creators
limited by individual platform mechanisms, – AI-driven transparent and automated decision-making with
as tangible outcomes build onto
web3 technologies offer the unique sufficient control mechanisms, including an appeal process
are ensured initial creation
opportunity to ensure trust, credibility and
fair value distribution by design. Establishing – Attributing value to intermediaries, such as legal,
a new set of standards and processes is marketing and influencers, who create value
required to allow creators and participants through rights, promotion, distribution and more
(businesses) in the metaverse to create, build 5 3
and share ideas in a way that cultivates a – All parties (creators and organizations) to share a
circular economy in which everyone wins. percentage of credit and/or monetary value Creators, Creation is
intermediaries and launched onto
4
What must we get right? end sales get a marketplace
financial cut Money
– Address the culture of ownership in relation to IP rights
management and treatment and credit is
flowed back
– Address how to properly measure “added-value” proportionally
divided
– Address how to flow micro-credits fairly and efficiently
– Design for growth, not to inflate, such that the majority
of creators can make a sustainable living
Demystifying the Consumer Metaverse Contents 203 Metaverse
economic models
Demystifying the Consumer Metaverse Contents 213 Metaverse economic models FIGURE 6 It is evident that the metaverse offers a
myriad of opportunities for new circular
Metaverse economic models
Introduction business models. Users continue to develop
their digital identities, and they do so by
making use of economic mechanisms, such
as avatar skins, NFTs or immersive games.
The metaverse is expanding Gen Z especially exhibits a liking for brands
traditional monetization channels and platforms that help them embrace their
and opening the door for net unique identities.17 However, consumer
value will not be generated universally.18
new consumer opportunities.
Leaders must understand consumer wants
Economic models will form and needs and decide which role to play in
an interdependent ecosystem the metaverse, informed by consumer data,
across all roles that is driven designed in a human-centric manner.
by compelling experiences, Organizations need to align their metaverse
seamless commerce options and strategies with industry-specific needs, target
the fabric that will underpin both. group metaverse adoption and maturity,
and the technological and regulatory
landscape. New economic plays will be
based on successfully delivering compelling
Metaverse goods Metaverse payments Metaverse fabric
experiences, seamless commerce options,
and experiences and commerce
The surrounding ecosystem social interaction and transactions, the
The user moments that The marketplace and and tools that enable underlying fabric that will support the
delight, surprise and engage platforms that consumers experience and economy surrounding ecosystem and tools that enable
transact on circular experiences and economies.
Aware of the fast-evolving nature of this
space, this chapter explores the potential
value capture of nine economic models.
These models are projected using market
research and analysing value captured from
existing Web2.0 business models.
Demystifying the Consumer Metaverse Contents 223 Metaverse economic models
Paths to Metaverse goods
and experiences
Metaverse payments
and commerce
Metaverse fabric
economic value
and growth in
the metaverse
The metaverse opens a spectrum of new
revenue opportunities – from traditional
to entirely unprecedented. The following
eight economic models represent notable
shifts from today’s ways of doing business.
Businesses may pursue one or more of
these simultaneously.
1 2
Note on the metaverse and personal data:
the metaverse will introduce new models that enable Digital products and assets Access and influence
users to share, manage and operate their own
New product opportunities will range from Pay-for-access options enable a path to
data. Although personal data is not called out as an
economic model in its own right, this report aims to independent revenue streams driven by monetization typically for exclusive and
emphasize the responsible use of personal data while entirely virtual goods, from NFTs, to avatar premium offerings – such as items, tiers,
outlining its potential. skins, accessories and features, to tokens tools, one-time events or entire worlds.
enabling fractional ownership, to perpetual Pricing structures can be designed to
royalties that generate passive income. complement the associated user experience.
Select the tabs Finally, phygital products provide utility within
to discover more and across virtual experiences that extend to Examples: Premium tier access, play-to-
the physical simultaneously. earn and usage-based toll
Examples: Digital assets, consumables and
phygital products
Demystifying the Consumer Metaverse Contents 234 Future value horizons
in the metaverse
Demystifying the Consumer Metaverse Contents 244 Future value horizons in the metaverse FIGURE 7
Projected horizons of metaverse growth and adoption
Introduction
Economic models selected today must consider the varying stages of maturity across
technology, policy and wider enablers that these choices may use, as these choices will act
Mass scale will depend on as the foundations for how experiences of product and service offerings will evolve over time.
the ability to deliver engaging
experiences – however,
maturity across key enablers Now Near Next
will be the defining driver. Early adoption and traction Ecosystem maturity Mass adoption
Forecasting beyond this first wave of use cases
and their corresponding economic mechanisms
will continue to be an open and evolving
dialogue. However, as technologies continue Today-2 years~ 2-5 years~ 5-10+ years
to be adopted, purposeful experimentation Initial enablement Mainstream products Proliferation of worlds,
acts as an opportunity for brands, businesses and experiences and technologies products and services
and creators to design, build and refine
experiences and supporting models. The Early development and adoption of Development of standards for enabling Maturity and adoption will set
thinking today will act as core foundational worlds and spaces powered by major interoperability, mass adoption future scenarios, with economic
learnings for stakeholders to position investment in content production, of immersive technologies, new models to be validated further in
themselves and to evolve and expand offerings new tools and features, foundational business models based on content future reports supported by the
into longer-term, sustainable opportunities. technologies, hardware, software distribution, new financial products identification of new value chains
and identity solutions. and services and the proliferation and future growth scenarios.
It’s important to understand that this is a of 5G and edge computing.
rapidly evolving space of technologies, and
albeit an evolving ecosystem, development
requirements can be attached to the time
constraints of when fundamental technologies
will be mass-produced and adopted and the
impact this will have on select value plays.
Demystifying the Consumer Metaverse Contents 254 Future value horizons in the metaverse Metaverse-ready Advancements in network infrastructure
networks and cloud computing to deliver
Drivers of growth interoperable and interconnected virtual
worlds and scalable experiences that
and adoption of enable large populations of users to
interact and engage.
the metaverse Realistic avatars Select examples:
– New infrastructure topology
Six non-exhaustive areas were identified
as leading prerequisites for impactful
– Network edge computing
metaverse mass adoption.
Hardware,
infrastructure and – Cloud rendering stack
computing power
Select the tabs – Advancement of 5G
to discover more
Governance, standards
and regulation
Ownership
AI
Demystifying the Consumer Metaverse Contents 26Now Near Next
4 Future value horizons in the metaverse Sources: “What’s New in the 2022 Gartner Hype Cycle
Early adoption Ecosystem Mass for Emerging Technologies”, Gartner, 10 August 2022.
Projected and traction maturity adoption Gartner, Gartner Identifies Key Emerging Technologies
Expanding Immersive Experiences, Accelerating AI
horizons of
Automation and Optimizing Technologist Delivery
[Press release], 10 August 2022.
Infrastructure and network Software and platforms
metaverse growth – Brands launching new VR (enhanced – Full body tracking without full body
Rimol, Meghan, “Metaverse, Web3 and Crypto:
Separating Blockchain Hype from Reality: Q&A with
Avivah Litan”, Gartner Newsroom, 30 August 2022.
and adoption display, optics), AR and MR devices sensors using AI Baier-Lentz, Moritz, Faye Maidment, Benedikt Hübenthal,
“Reality Check” Perspectives on Extended Reality
– Proof of stake permissionless platforms (AR, MR, VR)”, Bitkraft, 2021.
This list does not aim to provide an exhaustive Biondi, Matteo, Anna Heid, Ivan Ostojic, Nicolaus Henke,
overview but brings to life the types of enablers – Location-based awareness – standards Lorenzo Pautasso, Niko Mohr, Linde Wester, Rodney
Zemmel, Quantum computing: An emerging ecosystem
required to accelerate the development and and experiences using device and geo-
and industry use cases, McKinsey & Company, 2021.
adoption of the metaverse, with a particular location capabilities
Mello-Klein, Cody, ”The Future of 6G Wireless Could
focus on the metaverse stack layers of be Closer Than You Think”, Northeastern University,
software and platforms, infrastructure and – Decentralized physical asset tokenization 26 May 2022.
network. Experience, economy and identity
– Low code/no code development tools “6G: preparing today the mobile networks of the future”,
are addressed in greater detail in other Orange, 11 July 2022.
sections of the report.
– Decentralized identity solutions “Digital identity trends – 5 forces that are shaping 2022”,
Thales, 29 December 2021.
– Advancements in 2D mobile and desktop Cordon, Stephanie, “2023 will be a pivotal year for VR:
Select the now, near and Which headset will you buy?”, ZDNET, 5 July 2022.
experiences
next to discover more
Makarov, Andrew, “12 Augmented Reality Trends of 2023:
– Development of new XR (VR, AR and MR) New Milestones in Immersive Technology”, MobiDev,
content, product offerings and experiences 2 August 2022.
– Development of new offering, such
as commerce and token-based
marketplaces/memberships
Demystifying the Consumer Metaverse Contents 27(Not exhaustive)
4 Future value horizons in the metaverse Paths to economic Now Near Next
value and growth Early adoption Ecosystem Mass
in the metaverse
Projections and traction maturity adoption
of when the Digital products
Potential future scenario: As ownership of digital assets becomes mainstream, new economic models
making use of those assets will arise. Models will include the development of specific assets for target
value of these and assets
Digital assets External platform utility communities as a reward for their engagement. Other models, such as the tokenisation of the brand-
to-consumer relationship, will enable greater participation, collaboration and innovation, where users’
economic
creative input is recognized and rewarded – creating a sense of togetherness, inspiration and loyalty.
Potential future scenario: Premium experiences, which allow users to access and acquire products,
opportunities Access and
influence
Play-to-earn Access as an asset
services and experiences by paying a fee, will mature. Mechanisms such as governance and voting
rights will go mainstream. Brands will grant users’ rights by means of utility tokens or virtual assets.
It is important to note that sufficient governance, regulation and standards will need to be in place
may be realized to make this metaverse experience truly democratized and not a one-share-one-vote process.
across the
Potential future scenario: Growth of token-based business models and aspects of the commerce
Immersive Tokenized gated
Immersive shopping value chain becoming decentralized may lead to the potential transition to a decentralized future of
commerce marketplace commerce (commerce 3.0) where decentralized commerce (DeCo) platforms go mainstream.
same horizon Payments and
Digital wallet custody
Central bank digital
currencies (CBDCs)
Potential future scenario: The inclusion of digital wallets within the financial services sector and
the adoption of CBDCs and Stablecoins will improve cross-border payments, making remittances
currency cheaper and faster. This will create new kinds of financial instruments, such as fractional lending.
and stablecoins
Select each path to read Potential future scenario: Mass adoption of worlds and spaces will result in the potential for net-
more in the Appendix Asset
Staking Credit/loans new sources of revenue generation, as end-users, creators, brands and businesses will be able to
monetization lease items such as virtual spaces or renting digital products and spaces for passive income.
Potential future scenario: Moving from traditional content to more natural, immersive, and intuitive
experiences, new concepts will come to the fore, from programmatic advertising at scale, to hyper-
Advertising “Buy off your
Virtual brand worlds personalized brand experiences where users live the Nike commercial, to integrated advertising across
and marketing back” affiliates omni with virtual/AR as the new channels, built on a trusted identity foundation where users control
their data, potentially opening the door for consumers to reap some of the monetization benefits.
Potential future scenario: By 2030, it is projected that immersive technologies, content and experiences
Disclaimer: The displayed projections are based Creator Creator tools will accelerate this sector, blurring the lines between creator and consumer on an unprecedented
Product co-creation
on market research and forecasts. Various economy and features scale. Leading to a proliferation in creator-led content and resulting in next-gen creator tools and
variables, such as investment, regulation or features and new brand/creator partnership models as the metaverse matures and evolves.
economic climate, impact metaverse evolution.
In consequence, the displayed mechanisms may Potential future scenario: A proliferation of interoperable worlds and spaces will result in a need for
Metaverse-
mature and evolve earlier or later than projected. Smart contracts Premium connectivity net-new virtual services, from access to network and computing power to digital-twin-as-a-service
native services and metaverse-as-a-service offering specialized services, simulations and entire world builds.
Demystifying the Consumer Metaverse Contents 28Conclusion While the metaverse’s full potential will likely
unfold in the coming decade, its current
This report gives a comprehensive but non-
exhaustive overview of possible economic
nascent stage offers great opportunity to opportunities and their potential for companies
individuals and organizations to position across various consumer-facing industries. In
A comprehensive understanding themselves clearly in a newly emerging recognition of the evolving creator economy,
of the metaverse builds the world. As education and understanding drive the report aims to show the positive impact
equitable adoption and value distribution, it is that comes with a metaverse that potentially
foundation for equitable essential that the public and private sectors strengthens the role of creators. Organizations
adoption and economic create a deep understanding of the metaverse, in the public and private sectors should
success across industries. its components, implications and economic continue to amplify creators in order to fuel an
models today. equitable digital economy.
Today’s imagination drives tomorrow’s While this report marks an important step
innovation. Thus, growth drivers and emerging on the journey towards an equitable and
technologies require further development and meaningful metaverse, it will be followed by
innovation to enable meaningful metaverse further research, analysing potential social
engagement and interaction. Based on implications of the metaverse, implications to
forecasts and statistics, this report can only metaverse governance, as well as quantitative
speculate that, next to others, these drivers data-based forecasting of potential economic
include metaverse-ready networks, software, scenarios and value chains in the metaverse.
hardware infrastructure and AI.
This current nascent stage of the metaverse
Individuals and businesses must find their offers an unprecedented opportunity to build
role within the metaverse economy and better, more equitable and just worlds that may
clearly define their metaverse strategy, goals greatly impact current physical reality. This
and target group to ensure meaningful value report sets a steppingstone for companies and
exchange and distribution in augmented or individuals to start their educational journey
immersive worlds. They must evaluate their and to translate it into economically and
current offerings, appropriately translate socially viable action.
them into metaverse environments, or allow
disruption of their business models.
Demystifying the Consumer Metaverse Contents 29Appendix
Economic models in the
consumer metaverse
The metaverse will expand traditional economic models
by replicating them in metaverse environments and by
complementing them with a certain level of interaction and
immersion. At the same time, the metaverse will open the
door for new, unexplored economic models, which will disrupt
entire industries and generate brand-new revenue streams.
This appendix aims to highlight a selection of relevant
economic models the metaverse offers today or will offer in
the near to long-term future, outlining possible commercial
opportunities for companies and creators to explore.
Demystifying the Consumer Metaverse Contents 30Appendix Economic mechanisms: Economic mechanisms:
product sales and royalties equity and entitlement sales
Digital products
and assets 1 Digital assets 5 Pre-production sales
Digital products, such as in-game assets (skins, wearables) or art (NFTs), Fund/refine product development through digital, pre-production
can drive meaningful revenue through direct end-user sales while also representation of a product. End-users can collect/sell/trade, and the
The metaverse unlocks a new frontier with enabling royalties (passive income from secondary sales in perpetuity) to brand can benefit from the market insight and cash flow.
digital products and assets. New product creators and platforms.
opportunities will range from independent
revenue streams driven by entirely virtual goods,
6 (Hyper) fractional ownership
over NFTs, avatar skins, accessories and
2 Phygital products
Enable fractional ownership of more expensive assets to end-users by
features, tokens enabling fractional ownership
End-users can redeem digital products or NFTs/tokens for physical, broadening the pool of potential buyers and increasing engagement.
and perpetual royalties that generate passive
and vice versa, increasing utility and brand exposure across channels.
income, to phygital products that provide utility
Products can be directly mirrored or conceptually related, expanding
within and across virtual experiences and 7 Community exclusivity
experience and storytelling opportunities for brands.
extend to the physical simultaneously.
Brands can develop products specifically for target communities of end-
The metaverse introduces new user 3 Consumables users as a reward/incentive for their engagement. Products can be sold
experiences and relationship models, such or gifted, physical or virtual, and can be personalized or tiered based on
as micro-interactions or micro-experiences, Single or multiple use tokens, with the potential for expiry, open the door membership level or owned assets.
that deepen the connection between the for applications like coupons, tickets, and more (loyalty programs). These
brand, creator and consumer, offering new items can be sold or rewarded by brands to end-users where they can
8 Physical asset tokenization
ways to express, create, share content and choose to trade or consume the item.
drive community behaviours introducing new Physical assets can be tokenized as NFTs and exchanged, traded,
forms of growth. 4 External platform utility transferred and held like any other NFT; or redeemed for the physical asset.
Brands can develop goods for end-user utility within existing external
platforms, such as creating a wearable for use in Decentraland, an in-
game asset, or a 3D model to be imported into a virtual environment.
They can be bought or earned and then resold by the user. The platform
may take a cut of the sale.
Demystifying the Consumer Metaverse Contents 31Selected insights EXAMPLE USE CASE The almost century-old publisher TIME has
been facing a changing media environment,
Digital assets – strategic evolution
Mindset shifts shifting consumer behaviours and the challenge
to stay competitive in a market strongly
– Digital and physical experiences will need
impacted by free online content. Widening
to transition seamlessly.
its existing business model, the company
introduced TIMEpieces, connecting culture and
– Community-led approaches will support
technology. Within the project, TIME partners
product development, funding and more.
with artists and creators to create NFTs, which
– Digital scarcity elevates value, and can be purchased through platforms such as
embedded royalties foster connection in Opensea. Through this, TIME has showcased
the creator economy. a fluid ability to develop web3 offerings and
business model alternatives. The company
has gathered more than 50,000 artists and
Additional considerations
sold over 22,000 NFTs generating more than
– Interoperability of assets will play an $10 million in profit and over $600,000 for
important role in value creation. charities to date.19
– Virtual to physical commerce models have
not yet been scaled.
– Potential impact on supply chains to
deliver virtual to physical offerings.
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