Welcome to Edition #7 of The SEG3 Report.

Last week saw the NFL Draft, a hub of innovation in the sports entertainment sector, where the league excels in turning the reading of names into must-see TV. Notably, the Pat McAfee Show's YouTube live-streamed Draft Spectacular grabbed headlines as an entertaining alternative to the NFL Network’s broadcast, and the Chicago Bears' introduction of their new #1 Draft Pick, Caleb Williams, was among the highlights.

Manchester City expanded its NFT collection in collaboration with OKX, unveiling the "Unseen City Shirts" series tied to unique limited City kits, as well as joining Newcastle United in partnering with Quidd.

This week also marked a significant development as Walmart gained the ability to sell physical goods directly to users within the virtual realm of Roblox.

Here’s what you need to know this week:

• The latest drop from the Manchester City and OKX partnership

• The Chicago Bears use holograms to introduce their Draft picks to fans

• Walmart just launched e-com through Roblox

Let’s get into it…

Manchester City and OKX release limited edition kit and experiences connected to NFT drop

Manchester City and OKX have collaborated to launch a unique collection of NFTs tied to limited-edition jerseys and matchday experiences. Dubbed the "Unseen City Shirts" campaign, this initiative offers fans the chance to mint digital collectables on the OKX app, with the rarity of the NFT determining access to exclusive rewards, including redesigned football shirts featuring hand-painted artwork and memorable matchday experiences.

The NFT jerseys, adorned with intricate designs featuring the Lancashire rose and the Manchester worker bee, are hand-painted by artist Christian Jeffery. The rarity of the NFTs is determined algorithmically, with ultra-rare NFTs granting access to unique experiences such as playing on the pitch and attending a Manchester City match. The campaign aims to engage fans in a new way, blending the worlds of sports fandom and digital ownership through Web3 technology.

Why you should care?

This venture represents Manchester City's ongoing strategy to embrace technology and innovation to connect with fans. The collaboration with OKX marks a step forward in exploring the potential of Web3 technology, building on previous ventures into Web3 and metaverse environments, including their Blue Moon experience on Roblox.

Through this collaboration, fans can unlock real-world rewards such as official merchandise and exclusive experiences, including watching first-team training sessions at the City Football Academy.

The NFT drop aligns with two trends presently associated with these types of deals: free distribution and connections to real-world value propositions. The NFTs were distributed on a first-come-first-serve basis and offer no onward value to those who claimed them, ensuring they avoid any NFT value speculators, while attaching a real-world prize to the NFT claimed that helps convey the message that these NFTs only hold value to genuine fans of City.

The OKX drop is part of a busy week for the Man City marketing team, as the club also announced a multi-year partnership with Quidd, a prominent digital collectable platform, allowing fans to engage in modernized football culture by swapping and collecting digital cards.

This news from Quidd follows the announcement of their partnership with Newcastle United, previously covered.

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#1 NFL Draft pick, Caleb Williams’s hologram meets Chicago Bears fans

During the 2024 NFL Draft, the Chicago Bears welcomed their top draft pick, quarterback Caleb Williams, and the Bears’ #9 pick, wide receiver Rome Odunze, in a novel way. Utilizing holographic technology from Proto, the Bears beamed both players live from Detroit into Soldier Field's Miller Lite Draft Party, providing them with an instant introduction to their new fanbase and home stadium.

This innovative approach allowed Williams and Odunze to interact with fans, receive messages of support, and immerse themselves in the excitement of joining the Bears from over 200 miles away. Williams expressed his excitement at being hologrammed into Soldier Field, and Odunze described the moment as "awesome" and looked forward to stepping onto the field in person. Both players were visibly moved by the outpouring of support from fans.

Why you should care

It’s a fun innovation, and people liked it!

The approach received praise from various media outlets and fans on social media. This is a solid example of innovation being used to enhance an experience, rather than simply innovation for the sake of innovation.

The holographic interaction not only provided a memorable experience for the draft picks but also an example of the life-scale hologram technology being used in a commercially viable setting to surprise and delight an audience. While this technology has been used in tech demos and some fashion applications, this is another application in sports and something that may gain traction to connect players with fans at scale.

Having the number one pick in the Draft is a big deal for a rebuilding franchise, especially when you are picking Caleb Williams, who has basically been the consensus #1 pick for two years. The Bears had the benefit of knowing for a long time they would be taking Williams, so they could get creative in making the intro. Every single team does a press conference with their picks, so this was a great opportunity to take this moment to another level.

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Walmart is selling physical goods to customers through Roblox

Walmart and Roblox have partnered to bring a groundbreaking omnichannel shopping experience to the Roblox metaverse, allowing users to purchase real-world products and receive virtual twins for their avatars.

Through a partnership with Roblox, Sawhorse Productions & GEEIQ, Walmart's virtual storefront within the Walmart Discovered experience enables players to browse and buy real-life products using a simulated browser window. This move marks a significant step for both Walmart and Roblox, signalling the convergence of virtual and physical retail experiences and highlighting Roblox's evolution into a comprehensive digital platform beyond gaming.

The e-commerce experience within Roblox operates similarly to traditional online shopping, with users aged 13 or older in the United States able to securely input their payment and shipping information to complete purchases. Upon checkout, users receive a confirmation email from Walmart, and their virtual items are immediately granted within Roblox. 

Why you should care

It’s happening. The lines between “e-commerce”, “virtual merchandise”, and old skool commerce have become too blurred to matter. 

For Roblox, adding e-commerce represents a significant opportunity to expand its revenue streams and attract brands seeking to engage with its vast user base, while monetising in more traditional ways. 

The pilot test with Walmart is just the beginning, with Roblox planning to explore various e-commerce models and partnerships in the future. The potential for brands to leverage Roblox as a platform for selling physical goods opens up new avenues for commerce and offers a global market reach. As both Walmart and Roblox gather feedback and optimize the e-commerce experience, the future holds promise for further integration and innovation in virtual shopping, especially as we know Walmart is already exploring ways to commercialise other gaming platforms. 

In other news…

A quick round-up of other stories we found interesting this week!

• The Visual Capitalist: The world’s top media franchise, by all-time revenue

• Matterport, the global leader in 3D digital twins of the built world, is to be acquired by CoStar Group for $2.1 billion

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