Safety first: Designing a responsible metaverse

The amended Online Safety Bill contains sensibly scaled back provisions for “legal but harmful” content for adults, retaining the objectives of removing harms to children and giving users more choice. However, this comes at the expense of enhanced transparency from platforms.

News publishers have won further protections: their content will have a temporary ‘must-carry’ requirement pending review when flagged under the Bill’s content rules. Ofcom must keep track of how regulation affects the distribution of news.

The Bill could be further strengthened: private communications should be protected. Regulators will need to keep up with children’s changing habits, as they are spending more time on live, interactive social gaming.

Web3-enabled games represent a radical transformation for all elements of the gamer ecosystem: gamer, developer, publisher and platform. Through blockchain technologies, and the development of a digital asset economy, gamers will benefit from true ownership and investment in games—driving new network effects and growth

Web3 gaming is unlikely to have a ‘big bang’ moment dependent on a new device or hardware. Instead, we expect organic growth, with a positive ramp due to ongoing investment in the space. Great games are a necessary condition of success

Complexity and platform barriers shouldn’t be underestimated. Web3 will require imaginative design solutions along with new tools and service providers to smooth the limitations related to blockchain decentralisation, and the sector should decouple from the turbulent cryptocurrency space

Prepared for The Metaverse Society by Enders Analysis

This report is free to access.

Cross-party support for an 11th hour amendment to the Online Safety Bill’s Commons report stage has forced the Government to agree that a new criminal liability for tech executives will be added in the Bill’s passage through the Lords.

The proposed amendment cites faulty precedents, including in financial services, and a new, not yet established Irish online safety regime that is lengthy in procedural steps before criminal sanction.

The introduction of criminal liability will not strengthen the safety objectives of the bill. It is at odds with the approach of the wider regulation, and is practically unworkable.

For the media and entertainment industry the dawn of the metaverse, and the word soup of acronyms that accompanies it, is the latest high-profile technology wave that threatens to simultaneously upend established distribution models and reinvent both the experience and relationship with the audience.

Many companies will feel they have been here before. The last 25 years have seen technologies move from linear to on-demand and physical to digital; and devices from fixed, heavy boxes, to always connected and mobile-first. Some companies never recovered from these changes.

The next 24 months is a particularly useful window to invest at small scale and with limited downside risk. With audiences small but influential, there is opportunity to start early, develop robust test cases and establish new community-building and storytelling formats.