The rise of smartphones, social networking, and mobile data have made many new trends possible. Chief among them has been a jump in demand for virtual goods. Defined as digital items that can be bought, sold, and used in computerized environments, virtual goods become more valuable and sophisticated each year, making it essential for major brands and investors to get involved. Many of them have already done so, notably by creating or licensing virtual possessions to be used in major video games. But virtual goods take many forms besides gaming resources. To truly understand the value of this market, you have to consider all the types of virtual goods, including:
Clothing lines like H&M have been involved in the virtual goods market from the beginning. These companies make virtual clothing that resembles the physical items they manufacture and sell in the “real” world. Customers can purchase these goods to display on social media or to outfit their characters within games and virtual worlds.
Besides donning clothes on social media and in virtual worlds, players often want to have pets. Digital pets can resemble real animals, or they can be new types of creatures that only exist digitally and in our imaginations. It’s also possible to make pets that relate to a certain brand or individual. For example, hip-hop legend Calvin Broadus has sold digital Dobermans, a type of virtual animal that relates directly to his stage name, “Snoop Dogg.” In this way, he has been able to make more money, connect more closely with his fans, and bolster his personal brand.
Many fans would like nothing better than to get their hands on items owned by their favorite singers and actors. Virtual goods are making it possible to do this on an unprecedented scale. Beyoncé, for example, has created a digital replica of her famous diamond ring, which is available for purchase on the Facebook fashion application Mall World. Products like these let fans feel closer to their favorite performers, and they make it possible to spread items that are limited in quantity.
In addition to entertainment and personal expression, virtual goods are of great value in education, a field where digital devices are playing an increasingly important role. Virtually any written document can be digitized as an eBook, and many writers are now creating books solely in a digital format. This allows writers and textbook companies to reach a wider range of students and customers at a lower cost, all while continuing to profit from their writings. Besides books, there is a high demand for training applications that can also be sold in virtual good form. Anyone seeking to expand their knowledge can benefit immensely from the market for licensed digital items.
As virtual goods of all forms become increasingly popular, BLMP is creating a framework to produce and license them more efficiently and securely. By connecting virtual good designers, publishers, and brands and helping them form secure partnerships, we allow this industry to achieve its full potential.
