The virtual world intertwines with reality, Web3 leads a new era of digital entertainment

Driven by technology, people can experience unprecedented interactions in the virtual world. Imagine being able to embark on adventures with anime characters or having your digital avatar strut down the runway in top designer creations. These new experiences that blend the virtual with the real not only add fun to people's lives but also harbor immense commercial potential.

In recent years, the application and development of innovative technologies have become one of the main driving forces behind the rapid expansion of the entertainment industry. Driven by digital technology, digital entertainment has become a highly potential economic sector. Research reports predict that global online entertainment market revenue will grow from $184.2 billion in 2021 to $653.4 billion in 2027, with an annual compound growth rate of up to 21%, indicating a very promising development outlook.

The popularization and upgrading of mobile internet and smartphone technology have led to explosive growth in the fields of streaming music, video, social platforms, and mobile games over the past decade. Next, a new round of breakthrough growth is likely to be driven by the third generation of the internet (Web3) and blockchain technology. NFTs, GameFi, "play-to-earn" models, and immersive entertainment are all directions that global entertainment giants are heavily investing in and exploring.

Recently, a digital entertainment leaders forum themed "Entertainment Power UP! Web3 New Horizons" was held in Hong Kong. More than 90 speakers from over 30 countries and regions shared how digital entertainment technology brings new experiences to different fields such as art, education, sports, and life in the Web3 era, and explored the applications and opportunities of Web3 in daily life. Over 3,500 people participated online and offline, generating a strong response and showcasing the vigorous development of Hong Kong's digital entertainment industry.

As a public event, the forum site also features interactive projects such as AR games, smart sports walls, simulated racing experiences, and application workshops, along with local specialty snack stalls, providing an excellent leisure destination for the weekend.

High-quality entertainment experiences can stimulate consumption and drive economic development. Hong Kong is striving to seize new opportunities in the development of digital entertainment. Currently, Hong Kong has gathered around 170 companies engaged in digital entertainment, involving businesses such as the metaverse, game development, game big data analysis, esports equipment, and peripheral research and development.

Among these companies, many are actively applying Web3 and other cutting-edge technologies, and have achieved significant results. For example, a local digital health startup has partnered with a well-known entertainment company this year to launch the world’s first immersive interactive fitness adventure application, where players can exercise alongside comic characters. Another startup game company has successfully entered the Japanese market with its metaverse game, accumulating over 145,000 members in community channels in just six months.

The application scope of Web3 is not limited to digital entertainment or virtual assets. Its core blockchain technology features decentralization, security, transparency, immutability, and low cost, which can be applied in various fields such as finance, commerce, trade, supply chain management, and even daily life, solving real-world challenges through technological and application innovation.

To accelerate the development of Web3, the Hong Kong government has allocated HKD 50 million in this year's budget to establish a thriving Web3 ecosystem, including attracting businesses and talent to settle, as well as holding relevant educational and promotional activities. Currently, Hong Kong has gathered more than 180 Web3-related technology companies, including unicorns and licensed virtual asset trading platforms, with over one-fifth of the companies coming from mainland China and overseas.

The government has also established a dedicated task force for the development of the third generation of the internet, bringing together industry elites and professionals to assist the government in steadily promoting the sustainable development of Web3 in Hong Kong from aspects such as regulatory framework, ecosystem, infrastructure, talent cultivation, and education promotion.

As an international financial center and a metropolis that values innovative technology, Hong Kong must maintain a sense of urgency and seize the major trends in technological development. With robust and appropriate regulation as a premise, it should actively lead and promote innovative exploration and development, allowing Hong Kong to take advantage of this wave of intense technological innovation to develop its economy and benefit its citizens.