‘Metaverse’ is the new buzzword but what does it really mean and how will it affect my business?
For most people, the first time the word ‘metaverse’ probably reached their consciousness was in October 2021 when Mark Zuckerberg announced that his company, formerly known as Facebook, was being renamed “Meta”. In the rebrand press conference, Zuckerberg explained that “We believe the metaverse will be the successor of the mobile internet”.
In a world where the internet plays an ever-growing presence in our lives, can this really be true and, if so, how will it affect business and what steps can you take to stay ahead of the game?
In very simple terms, the ‘metaverse’ can be described as a 3D version of the internet – a digital environment that uses a combination of virtual and augmented reality software to allow users to participate in immersive experiences online.
Virtual reality software (usually accessed via a headset) can be used to create a completely virtual environment to simulate real-life experiences. By contrast, augmented realty software adds to an existing environment by superimposing images and/or animations on real objects, usually via a phone or glasses.
Metaverse environments are currently provided by various platforms, some of the most famous being Decentraland, The Sandbox and Roblox. However, as the technology (and consumer appetite) develops, it is likely that more metaverse platforms will emerge and an ever increasing number of brands will use metaverse technology as part of their business strategy.
Although it may seem like something of the future, it is becoming increasingly popular with brands and consumers alike. Analysis by Arden Partners shows private investment in UK virtual reality companies firms increased in 2021 by 72% from 2020 levels; investors put more than £150m of capital into UK virtual reality companies during the past year. Dolce & Gabbana and Estée Lauder were recently contributors to the first ever Metaverse Fashion Week and both HSBC and JPMorgan Chase have invested in plots of virtual land on metaverse platforms. According to MetaMetric Solutions, virtual land sales on the four main metaverse platforms reached $500m in 2021 and are expected to reach $1bn in 2022.
When you start to think of how this technology could affect and enhance business strategy, the possibilities are endless. A few examples of how metaverse technology could be used by businesses are:
There is even application for public institutions; through the use of avatars, metaverse technology could open up public services and allow for access from any location 24/7.
Although your business may not be about to launch within the metaverse, it is sensible to start to consider how it could affect your future strategy and take steps now, to ensure you’re in the best position.
Some points to consider are:
If you have any questions about how to protect your business in the emerging metaverse environment, please get in touch with a member of our Intellectual Property team.
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