People’s perceptions about fiat currency have entirely shifted as a result of Bitcoin. Bitcoin has established a rock-solid position in the market is very little than a decade, with bitcoin and its blockchain technology being used in a wide range of businesses.
The film industry is one of the most highly regarded and influential industries in the world. The fact that the movie business has begun to employ the bitcoin blockchain network is intriguing. Blockchain technology is employed in the film business for a variety of reasons.
Blockchain technology saves the industry by allowing people to raise funds in bitcoin and execute their work in a way that is unaffected by the actions of a third party or an organisation.
Bitcoin funding is a fantastic concept that can assist a lot of filmmakers. However, there are still individuals in the film industry that refuse to take bitcoin. You should be aware that only a handful of filmmakers have invested their money in bitcoin and used the bitcoin fundraising technique. The movie business has a lot of well-established studios, which makes it easier to find fantastic films directed by great directors.
Listen to Camila Russo talk about a Movie being produced based on her book!
Between 2017 and 2020, funding for blockchain firms more than doubled, with actual investment estimated to reach $16 billion by 2023. Although the most visible changes have been in the financial sector — from crowdfunding overhauls to decentralized finance (DeFi) apps affecting loans, credit, insurance, and asset trading — as well as infrastructure and security, blockchain’s growing popularity is set to have a long-term impact on the entertainment industry.
Blockchain technology might have a direct impact on entertainment for years to come, from the way material is produced, aggregated, disseminated, and consumed to the connection between content creators and their audience.
In the midst of the turmoil that comes with great change, the media and entertainment industry, which is rooted in the business of imagination, is riding a wave of tremendous potential.
Media firms have already begun to use blockchain technology to combat fraud, cut expenses, and preserve content’s Intellectual Property (IP) rights, such as music records. The global market for blockchain in media and entertainment is expected to reach $1.54 billion by 2024, according to MarketWatch.
Eluvio, Inc. is one platform that has gotten a lot of attention for using blockchain for media. Eluvio Content Fabric, which was officially launched in 2019, is a blockchain-based platform that allows content producers to govern and disseminate premium video to consumers and business partners without the usage of content delivery networks.
The recent introduction of blockchain concepts such as Web3, metaverse, and non-fungible tokens (NFTs) has piqued the interest of the general public. Now, the entertainment business has embraced a unique blend of these three principles built on the blockchain.
The challenges of successfully financing a new film or television content endeavour might be considerable. As a result, thousands of brilliant ideas never see the light of day. Including those who do not have a wide range of monetization options.
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Film Industry NFT and Development:
The Non-Fungible Tokens (NFTs) are prepared to join and shake the entertainment and film industries after making a big strike in transforming the art, music, gaming, and e-commerce businesses. Incorporating new types of utilities such as real-world is uncommon in the entertainment industry, as old methods of film finance have been entrenched at the main studios. In the worldwide movie film industry, the entertainment and film industry is certain to undergo a shift. This is accomplished by letting the audience participate in the empowerment of the performers, writers, and directors in addition to simply enjoying their favourite entertainment.
- The NFTs aid in the development of a film’s fan base prior to its release. Members of the project can help promote it by tying NFTs to the film, such as digital artwork and cameo appearances.
- If a fan buys one of these NFTs, they become a film investor and get a piece of the production process as a thank you for their support. Purchasing an NFT to support a new film is thus not only a method to assist an independent filmmaker, but also a way for viewers to invest and perhaps profit.
- NFTs can be utilised not only for implementation, but also for sales, fundraising, and dissemination. There are still a lot of undiscovered prospects.
- The first 500 persons who purchase NFTs for upcoming movies, NFTs that are broadcast at the end of the movie, or NFT theatre discounts can watch the movie.
- It is possible to raise funds to use NFTs to sponsor a film.
- Fans may support the film not only by watching it, but also by purchasing digital memorabilia.
NFTs can also revolutionise movie merchandising:
NFTs are information units that prove ownership of unique digital assets and are kept on blockchains. The latest step comes as the movie industry faces increasing pressure to make up for lost box office revenue and resuscitate the industry.
The first 10,000 persons who reserved seats for “The Pirates: The Last Royal Treasure” received NFTs from Lotte Cinema. On the W. Craft website, the victors were given “secret codes” that could be traded for NFTs.
Various types of digital products, such as collector art cards, AR (augmented reality) action tickets, and standing posters, have been released by the theatre chain operator. Lotte Cinema teamed up with Warner Bros. in December to give away NFT goods to the first 30,000 people who purchased tickets for “The Matrix Resurrections.”
“NFTs are a popular investment these days. NFTs will provide a higher level of satisfaction to moviegoers by combining current technology with the desire to get access to a star-led virtual social engagement platform. In the future, we will continue to release a variety of NFT items “according to a representative from Lotte Cinema,
CGV, another large movie theatre chain, has announced NFT launches that include items such as movie posters and digital art. NFTs with a “Kingmaker” theme could be obtained by applying for them after purchasing movie tickets. Those who view the movie a few more times can earn “premium” NFT items, including “VIP” film posters, which are only available to the movie chain’s top clients.
Let’s look at an example to see how this works. On the ritestream Launchpad, a Creator submits their film script for funding. An NFT is created in their wallet when they publish the script and accompanying metadata (e.g., poster) to the platform.
This gives them irrefutable proof of ownership on the blockchain. Consider the case where a movie costs $1 million to make and the producer wishes to keep 30% of the profits. A million $1 NFTs have already been produced and sold to the community that supports this project.
As a result, these one million NFTs account for 70% of the project’s ownership. These NFTs can gain in value over time (for example, if a well-known actor becomes affiliated to the film) and be traded on the ritestream marketplace or on open markets like Open sea.
One could buy 100,000 of these NFTs and get extra perks like an Executive Producer credit on the picture – a terrific opportunity for someone with a love for the industry to become part without having to become a qualified producer.
The film will be commercialised through the ritestream eco-system, which includes ritestream cinemas in partner Metaverse projects, after it is completed (soon to be announced). Smart contracts ensure that the revenues generated are returned to the NFTs.
Hollywood is being disrupted by DAOs, NFTs, and DeFi:
Cryptocurrency, blockchain, and other decentralised technologies have the potential to decentralise the power of centralised middlemen.
In theory, decentralised technology is well situated to disrupt the film industry and its incumbents, and Hollywood is no exception.
Due to mergers, the studios have consolidated into a tiny handful of “mega-corporations” whose primary goal is shareholder profit. He explains that this implies they are more likely to develop films based on existing intellectual property (IP). “So that’s why, in the previous 10-20 years, you’ve seen a lot of superhero movies; you’ve seen movies based on popular books because there’s a pre-awareness. It’s suffocating the original content.”
The goal of HollywoodDAO is to create a more democratic system. The DAO’s initial goal is to raise $2 million to $5 million through a token sale, which will be used to fund a single project, which will be a “animated adult series” developed by Steinberg in the first instance.
According to D.C. Cassidy, one of the organisers of HollywoodDAO, the objective is for creators to present ideas to the DAO in the end. “We see the role of HollywoodDAO as a community-run treasury,” he explained. Filmmakers would pitch the DAO with the same package and talent as any other traditional studio or streaming company. “They submit that to the community, and the community votes on which projects are funded by the community based on the governance tokens.”
Mogul Productions, which began as a “decentralised film funding” (or DeFiFi) platform, is another player in the space. As Mogul co-chair Gorav Seth says, their experience highlights some of the drawbacks of attempting to screen films for funding through direct community vote. Mogul’s original plan was to review pitches for “minimal elements” before putting them in a Showcase on the site. “The community would vote on which idea they want to see made, and Mogul would fund that film,” says the author.
NFTs are the focus of an indie film’s fundraising efforts.
NFTs are the focus of an indie film’s fundraising efforts, ‘Calladita,’ according to reports, is the most recent Indie film to go NFT. Miguel Faus used cryptocurrency to finance his first feature film. The crowdfunding campaign for ‘Calladita’ will begin on March 2nd. Those who help will receive NFTs and other incentives. NFTs, which will include stills and movies, will be distributed to the film’s backers.
An art gallery owner with an NFT collection is one of the film’s characters. Backers of the film can have their NFTs exhibited as part of the film’s NFT collection.
Quentin Tarantino held an auction of seven NFTs, including never-before-seen footage from Pulp Fiction. Despite a lawsuit from Miramax, Tarantino went forward with the auction. The first of the seven “TarantinoNFT” sets, which are built on the Ethereum (ETH) blockchain, sold for $1.1 million in January before Tarantino put the project on hold due to market instability.
While Tarantino was not soliciting funds for an indie picture, the announcement of a BlockbusterDAO sparked a lot of buzz in late December. By transforming Blockbuster Video into the “first-ever DeFilm (Decentralized) streaming platform and a mainstay of both Web3 brands and products,” the DAO hopes to change the film business.
FF3 is another platform that aims to change the film industry. FF3 seeks to provide a platform for filmmakers to use NFTs to fund their films.
Investors would hold collectible NFTs that owners might sell in the NFT marketplace, in line with Miguel Faus’s idea. Investors in Final Fantasy 3 would also get a cut of the film’s profits.
Cryptos, NFTs, and new platforms might usher in a new era for the film business as a whole.
Mel Gibson’s 2004 film “The Passion of the Christ” was estimated to be the highest-grossing independent film of all time, with worldwide ticket sales of $622.3 million at the time of release with a production budget of under $25 million, which was wholly sponsored by Mel Gibson himself.
Ryan Kavanaugh Announces a $100 Million Investment in Proxicoin, a Cryptocurrency Used to Fund Film Projects
With a $100 million investment from Central Wealth Group of Hong Kong and Step Ventures, Ryan Kavanaugh’s Proxima Media revealed plans for a new crypto-based funding mechanism called Proxicoin to fund film, TV, music, and other IP-driven entertainment.
Proxicoin, which is owned and created by Kavanaugh’s recently formed Proxima Media, seeks to use the Ethereum platform to issue cryptographic tokens that will allow individuals to invest in fractions of film and television slates. Following projects like MovieCoin, it’s the latest post-bitcoin, crypto update on crowdfunding for entertainment industry assets.
The token has been developed and audited, according to the business, which also announced a partnership with Malaysia’s Fusang Exchange, the first crypto exchange in Asia to be approved to trade security tokens. Fusang has stated that the exchange will be launched later this year.
Proxicoin owners will also be fractional shareholders of Entertainment Stock X (ESX), a new platform that the firm plans to establish by the end of the year that will function similarly to a stock exchange for funding entertainment ventures using Regulation A of the JOBS act.
Each film or television show will have its own IPO, with aftermarket trading providing liquidity. The trading platform has already secured deals for over 30 feature film projects, according to the business, albeit no particular titles have been revealed.
“The advancement of digital securities and tokenization technology is creating a once-in-a-lifetime opportunity to open Hollywood and entertainment assets to the globe while providing liquidity and transparency to investors in ways that have never been feasible before,” Kavanaugh explains “This exchange will allow ordinary people all around the world to invest in their favorite movies, something they enjoy, in a way that was previously only available to a select few.”