Synthetic media market: The do-it-yourself digital content industry is gaining ground

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  Quantumrun Foresight
• November 23, 2022

Insight summary

With the rise of digital communities like the metaverse, avatars and other synthetic media are also in demand. As a result, some companies are now building marketplaces where online users can create and trade synthetic media. However, some researchers believe these platforms may also give way to the widespread use of deepfake content for malicious purposes. 

Synthetic media market context

Synthetic media is computer-generated content created using artificial intelligence (AI) technologies. Three popular forms of synthetic media are deepfakes, virtual influencers, and augmented and virtual reality (AR/VR, collectively known as extended reality (XR)). Due to the increasing popularity of synthetic media in entertainment and social media, notably gaming, there are now marketplaces or platforms where users can commission, buy, and sell synthetic media (or synths).

Various platforms, such as those established by startups Alethea AI, Hour One, and Wolf3D, allow users to generate realistic avatars (digital representations or characters) of themselves for use in virtual spaces. Users can also create unique characters or pay to use synths based on real people or artificially generated ones in creative content, presentations, and even professional settings.

Some platforms are less reliable and more closely resemble black market trading posts. In these marketplaces, users can trade cryptocurrency for deepfake videos of celebrities, co-workers, family members, and neighbors. Some critics believe that the manipulative potential of synthetic media marketplaces can be severe. For example, XR platforms could create immersive experiences to spread disinformation and propaganda more easily.

Disruptive impact

As synthetic media becomes more advanced, the line between virtual and physical realities is likely to blur, leading to new forms of social interaction and community building. Users will be able to express themselves in increasingly diverse and creative ways, potentially fostering a more inclusive and varied digital culture. This shift could lead to a redefinition of social norms and etiquettes in virtual spaces, as these avatars become extensions of one's personal identity.

Economically, the rise of synthetic media is poised to create new markets and business models. For example, the customization and personalization of avatars could evolve into a significant industry, with users investing in digital assets to enhance their virtual presence. This trend could lead to the emergence of new job roles and industries focused on the creation, management, and trading of digital goods and experiences. For businesses, this represents a potential shift towards digital products and services, with a need to understand and cater to a digital-first consumer base.

Ethically, the advancement of synthetic media raises important questions around authenticity and trust in digital interactions. As avatars and digital representations become more realistic and widespread, distinguishing between real and synthetic identities may become challenging. This could have implications for trust in online communications and transactions. Furthermore, issues such as data privacy, consent, and the potential for misuse of synthetic media need to be addressed. 

Implications of the synthetic media market

Wider implications of the synthetic media market may include: 

• Virtual experiences, such as concerts and tours, grow in popularity, coupled with collectible NFT tokens as "proof of attendance."


• More hyper-realistic avatar customization tools allowing users to create highly customizable (potentially lucrative) synths.


• The rise of synthetic media black markets, where people can purchase or commission counterfeit deepfake content. For example, mimicking someone's likeness. 


• Digital workplaces that employ life-like avatars of employees in VR environments.


• More persuasive disinformation campaigns using virtual events in the metaverse.


• A shift in advertising strategies, where brands use synthetic media to create more engaging and interactive campaigns, enhancing consumer engagement.


• The emergence of new legal frameworks focused on the ethical use of synthetic identities, leading to clearer guidelines for digital content creators.


• Increased demand for digital literacy education in schools to equip the next generation with the skills to navigate and critically assess synthetic media environments.

Questions to consider

• How might synthetic marketplaces be applied to other sectors?


• What types of synthetic media are you interested in purchasing and why?


• What are the other potential benefits and dangers of synthetic media marketplaces?