Hello and welcome back to Edition #32 of The SEG3 Report!

It was a week of brilliant reports, with a16z, UNiDAYS, and Chiliz all putting out major thought leadership work, following the PTI Global Report from a week ago. While we try and cover two of the three below, I recommend a visit of all of the reports directly!

And, of course, with SEG3 LA just around the corner, covering the LA Rams use of Next Gen Stats to enhance the in-stadium fan experience felt timely.

Contents: Edition #32

• UNiDAYS release 2024 Gaming Report

• State of Crypto 2024 Report, released by a16z 

• Rams & Genius Sports launch in-stadium highlights with Next Gen Stats

That’s right - Vans, Spin Master & Skydance Games are the latest additions to the SEG3 LA lineup, and you’re the first to know!

We’ll be officially unveiling them & some other exciting speakers across our socials tomorrow, so if you haven’t already, beat the rush and register now to join the leading corporate innovators, brand marketers and technologists from the global sports, entertainment & gaming industries at SEG3 LA on December 11th.

Right - let’s get into it…

UNiDAYS release 2024 Gaming Report

The "Play to Win: Level Up Your Gaming Brand for Gen Z" report provides an in-depth analysis of the gaming habits and motivations of Generation Z students. 

The most significant insight is the very first… 100% of students engaging in gaming at least occasionally!

And with 33% gaming daily, it’s clear that video games play a significant role in the lives of young people.

The report highlights that gaming is more than just entertainment; it serves as a crucial outlet for relaxation and social interaction amidst the pressures of academic life. Gen Z prefers casual gaming experiences that are easily accessible on various devices, particularly mobile phones, which are favoured for their convenience.

The report identifies key reasons for gaming among students, such as the enjoyment it brings, its ability to help with stress relief, and the opportunity for socialising with friends. Puzzle-solving and party games are particularly popular due to their social nature and compatibility with multiple platforms. Despite gaming being a prevalent hobby, the report notes that it often takes a backseat in terms of financial priority for students. However, there exists a notable segment willing to spend on gaming once essential expenses are covered, creating opportunities for brands to engage this demographic effectively.

Additionally, the report discusses the importance of understanding the evolving nature of gaming content consumption among Gen Z, with platforms like YouTube and Instagram surpassing traditional gaming sites in popularity. While many students do not identify as gamers, indicating a more casual approach to gaming, there is a strong interest in the industry as a potential career path. The report concludes with actionable insights for brands looking to connect with Gen Z, emphasising the need to create content that resonates with their casual gaming habits, utilises preferred platforms, and acknowledges their diverse gaming identities.

Why you should care?

100% 

One Hundred Percent! 

We expect this stat is going to find its way into presentations and decks for many people reading this.

Naturally, understanding the gaming habits and motivations of Generation Z is crucial for professionals in the sports, entertainment, gaming & tech industries as this demographic represents the future consumer base and audience engagement landscape. 

This newsletter partly exists because traditional entertainment mediums like television and cinema are seeing a decline in viewership amongst younger audiences, with gaming emerging as a dominant form of engagement given it is blending entertainment with social interaction and community-building.

The rise of mobile gaming, combined with the accessibility of devices like smartphones and consoles, underscores a larger trend towards convenience and on-the-go experiences.  Appreciating Gen Z’s preference for mobile and casual gaming can inform the development of user-friendly platforms and experiences. Organisations that prioritise ease of access and social connectivity will resonate more with this audience, driving engagement and loyalty.

Finally, recognising that a significant portion of Gen Z does not identify as traditional gamers presents an opportunity to redefine engagement strategies across industries. This generation values entertainment as a form of relaxation and social interaction, often seeking experiences that transcend conventional gaming. By leveraging gaming content through platforms like YouTube and TikTok, brands can create immersive experiences that resonate with a wider audience while fostering community engagement. In this context, the ability to adapt and innovate in response to Gen Z's preferences will not only capture their attention but also lay the foundation for long-term relationships, ensuring sustained growth in an increasingly competitive market.

State of Crypto 2024 Report, released by a16z crypto 

The 2024 State of Crypto report highlights significant developments in the crypto industry over the past year, showing increased policy attention, technological advancements and rising user activity.

Major infrastructure improvements, such as Ethereum's scaling upgrades, have drastically reduced transaction costs, enabling broader adoption and the rise of Layer 2 networks. These enhancements have allowed for the growth of various onchain applications, including stablecoins, decentralised finance (DeFi), and new ventures in gaming, social networking, and AI integration.

The report reveals that stablecoins have solidified their product-market fit by enabling fast, low-cost global payments, with transaction volumes surpassing those of traditional payment services like Visa (shown by Stripe just agreeing to acquire Bridge for $1.1 billion). Stablecoin usage has continued to grow independently of crypto’s market volatility, demonstrating their utility beyond trading. Meanwhile, DeFi remains a popular category, with decentralised exchanges accounting for a notable share of trading activity.

Additionally, the report introduces the a16z crypto Builder Energy dashboard, which aggregates data to provide insights into where the most innovative crypto development is happening. Trends indicate a growing convergence between crypto and AI, as projects leverage blockchain’s decentralized architecture to address AI-related challenges. As the infrastructure continues to evolve, new consumer applications are emerging, with social networks and prediction markets (like Polymarket) paving the way for expanded use cases and adoption globally.

Why you should care?

First of all, this report is a masterclass in infographic creation and the use of long-form digital content as a sort of lead magnet. Appreciate this. 

Second, this report serves as a very comprehensive and hyper contemporary summary of the current state of affairs in crypto and web3. If you are not a crypto/ DeFi/ Web3 native, but feel you must maintain a working understanding of the space in order to perform you job to the best of your ability, then read the report. 

The report’s commentary reflects the broader shift towards digital transformation and decentralised technologies. As blockchain infrastructure improves, reducing costs and increasing capacity, it is now becoming more feasible for sports IP, entertainment studios & game publishers to build more sophisticated, scalable applications that can enhance fan engagement, create new revenue streams and foster community-driven experiences.

The rise of stablecoins and decentralised finance (DeFi) is particularly impactful for the gaming and web3 sectors, as they offer secure, low-cost and fast transactions - enabling seamless in-game purchases, cross-border payments and digital asset trading. Stablecoins could simplify the integration of digital economies within games, making it easier for players to buy, sell, and trade in-game items without the friction associated with traditional banking systems.

Moreover, the emergence of AI has presented new opportunities and challenges for IP owners - with the report diving into how web3 infrastructure can be leveraged to automate content licensing, protect creators’ intellectual property and enable secure and transparent distribution of media. As the digital landscape becomes more interconnected, the combination of these technologies could help address our industries longstanding challenges around data privacy, ownership rights and of course monetisation.

Finally, if most of these insights are self-evident to you already, the report shines a light on the future, and suggests that everyone might be coming around sooner rather than later. 

Rams & Genius Sports combined to launch Next Gen Stats-powered, in-stadium highlights

The Los Angeles Rams have partnered with Genius Sports to enhance the in-stadium fan experience by integrating data-driven, augmented highlights during home games at SoFi Stadium. Using the NFL's Next Gen Stats data, the highlights will be displayed on the stadium's Infinity Screen, providing fans with immersive visuals that include player locations, speeds, and other key game insights. This initiative is powered by GeniusIQ, Genius Sports' AI and data platform, which processes large volumes of data to create engaging, real-time content.

The collaboration also features the involvement of Verizon, a long-term Rams partner, whose branding will be prominently integrated into the highlights. This new platform allows Verizon to connect with fans during key game moments, unlocking new inventory for the Rams, and a dynamic and engaging advertising opportunity for Verizon. By leveraging these augmented highlights, the Rams aim to offer fans a richer, more interactive game-day experience whilst offering more game-ingrained experiences for brand partners to activate through.

Why you should care?

This partnership between the Los Angeles Rams and Genius Sports represents a broader trend of integrating advanced data analytics and AI to enhance fan engagement in sports. In an era where fans demand more immersive and interactive experiences, the use of Next Gen Stats to create dynamic, in-game highlights delivers real-time insights that deepen the connection between fans and the game. This is not just about watching a game; it's about understanding the nuances of play as they happen. The ability to visualize player movements, speeds, and strategies brings a new layer of engagement, with the use of augmented reality (AR) and data-rich content across sports and entertainment becoming more prevalent to enable this.

The integration of Verizon as a brand partner highlights another key trend: the evolution of sponsorship in live sports. Brands are (always) seeking more creative and immersive ways to connect with audiences. This collaboration allows Verizon to be a part of the action, not just around it, by placing their branding within the context of key game moments. This shift towards "native" advertising in live sports aligns with broader industry movements seen in gaming and entertainment, where brands are increasingly integrating/overlaying themselves into the core of the content rather than being peripheral to it.

This partnership showcases how data, AI, and real-time engagement can enhance the fan experience IRL, creating a blueprint for others to follow. This collaboration between the Rams and Genius Sports serves as an example of how real-time data that most sports brands and leagues now have at their fingertips can power unique experiences for audiences. It’s a model that other teams and entertainment providers can look to as they explore new ways to leverage technology to engage their audiences, with techniques at the live event that have previously been isolated on broadcast platforms.

In other news this week…

Here is a quick round-up of other stories you should be across from the past 7 days:

• Chiliz publish ‘The Global Fan’, a report powered by Fan Tokens

• Stripe buys Stablecoin payments platform Bridge for $1.1 billion

• Johnny Walker launch custom Squid Game whiskey bottles

• NFL & Roblox launch animation pack for Universe Football

• Mysten Labs launches testnet for decentralised storage protocol, Walrus

• Hugo Boss launch ‘Hugo Faster’ Roblox game alongside Visa Cash App RB F1 Team

Working on anything cool, or do you have a press release you would like us to cover? Send it in for the chance for it to be covered in next week’s edition!

That’s all for now - thanks again for reading the latest edition of The SEG3 Report!

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