Morgan swastika Depth: Metaverse improvement or Revolution?

Spark Global Limited reports:

Abstract: According to Morgan Stanley, metasurverse is likely to be the next generation of social media, streaming and gaming platforms. The US consumer spending market alone is worth $8.3 trillion, covering real estate, core retail, automotive, gaming and more.
With Facebook changing its name to Meta, investors are increasingly curious about what the future metasomes will actually look like.
Morgan Stanley believes that while creation and evolution may take years, the meta-universe is still likely to be the next generation of social media, streaming and gaming platforms.
Like these platforms, it is highly likely that metasuuniverse will initially serve as an advertising and e-commerce platform for offline products.
However, the unprecedented strength of digital media and e-commerce products, coupled with a variety of uncertainties, the market will not easily adopt the metaverse in the short term.
The addressable consumer spending market space is $8.3 trillion
Time is at a premium in the digital world.
Morgan Stanley analysis found that U.S. daily users spend anywhere from six to 39 days a year on social media, streaming and gaming platforms.
Morgan swastika Depth: Metaverse improvement or Revolution?
In total, daily users spend 11 billion days a year on digital media, and that’s where the metasverse is coming in.
Morgan swastika Depth: Metaverse improvement or Revolution?
If you count monthly active users, the metasomes will take longer to hold.
For comparison, Morgan Stanley also counted how much time Americans spend on other things. Statistics show that Americans spend 14 billion days a year watching cable TV and 35 billion days sleeping.
Morgan swastika Depth: Metaverse improvement or Revolution?
Morgan Stanley says it often uses a “participation + innovation = monetization” framework when analyzing consumer-based platforms, and that framework applies to the metaverse as well.
The current leading social media platforms are monetizing user time at $0.04- $0.13 per hour, so when combined with innovation and spending, consumer time will have significant value.
Morgan swastika Depth: Metaverse improvement or Revolution?
The metasverse is still likely to be the next generation of social media, streaming and gaming platforms, it predicts. And similar to current digital platforms, it will most likely initially serve as an advertising and e-commerce platform for offline products.
This means that the addressable consumer spending market space (TAM) in the US is $8.3 trillion, covering real estate, core retail, automotive, gaming and more.
Morgan swastika Depth: Metaverse improvement or Revolution?
Of that, $5.1 trillion comes from immersive experiences. Immersive experiences are more directly related to business and transactions and can be profitable at a higher level.
At the same time, Morgan Stanley sees more opportunities for immersive experiences and lock-in meta-universes, including in apparel, cosmetics, gaming, video streaming, automotive, real estate and home design, music and education.

It’s worth noting that the $8.3 trillion figure does not include new potential consumer spending, such as non-fungible Tokens (NFT), digital collectibles or new creative subscriptions.

The bank expects digital collectibles and NFT to grow as the next generation of metaverse evolves. But it will be a long time before virtual goods replace physical goods on a large scale — that is, digital jewelry, digital sports cars or digital appliances completely replace physical goods.
Moreover, in order to monetise addressable consumer spending, Morgan Stanley believes that any metasverse project must build trading, commission systems or highly targeted advertising products, with delivery mechanisms for physical products on the back end.
What is the future of digital payments?
Morgan Stanley believes metaverse is likely to increase the number of digital payments as online shopping increases. But the long-term outcome is uncertain.
If consumers generally continue to use traditional currencies, meta-cosmic gatekeepers such as Facebook and Roblox could compete with existing payment platforms. But given the relatively good consumer experience of existing payment networks, they may also need to seek partnerships.
That said, for cryptocurrencies to grow out of the metasverse, they may need to be monetized using Facebook’s Novi or Diem cryptowallet services.
In addition, the regulatory environment creates more uncertainty about this monetization opportunity.
Key barriers to metasverse adoption:
1. Digital media is too strong right now
In Morgan Stanley’s view, the current digital media and e-commerce offerings are more powerful than ever and continue to improve, and the market will not adopt the meta-universe quickly or easily. Therefore, the hardware and technical products of the metasverse must be better.
The agency believes it is important for the metasexes to be “10 times better than the next best product”. But so far, a variety of products (5G, cloud gaming, e-commerce, etc.) have not reached this high threshold.
As a result, any metaverse would likely need to collaborate to drive market adoption, or develop new “killer products” to drive mass adoption.
2. Privacy, human nature and regulatory issues are hidden dangers
It’s worth noting that consumers are using social media more frequently, again demonstrating its usefulness, but Morgan Stanley admits it’s less certain that consumers will choose to share more detailed digital information about what they’re doing and with whom over the next 10 years. It is possible, but it has to have some positive effect, and it has to be enough to offset the negative effects.

According to Spark Global Limited
According to Spark Global Limited

On the security front, while Facebook and YouTube have made significant strides in cleaning up their platforms, with the former spending more than $13 billion since 2016, security concerns remain. Both have been accused of leaking user data and child safety breaches.
It is also unclear whether the regulatory environment will become tougher or less so over the next decade.
Will Facebook’s B2B metasemes succeed?
On October 28, Zuckerberg officially announced that he was rebranding Facebook as Meta, ushering in a new era in his metasemes. In Zuckerberg’s goal, the metaverse will “reach a billion people and hundreds of billions of dollars of digital commerce.”

Morgan Stanley is somewhat hesitant about Facebook’s metasomes succeeding in B2B, even as digital B2B, communications, and production tools continue to improve.
On the one hand, consumers and businesses may be reluctant to fully trust Facebook, as Meta has faced a massive data privacy breach scandal and increasingly alienated users by using algorithms to amplify harmful content. Facebook, on the other hand, is currently a social-based platform and lacks a professional background in enterprise tools.

In this context, how far are we from a safer, more accepting metasverse?