Decentralize the film industry for better funding by DailyCoin
Decentralize the cinema industry for better financing
- Crowdfunding movies via blockchain creates new possibilities for anonymous or lesser-known producers.
- Blockchain can enrich the experiences of fans and viewers by creating a closer link between requests and results.
- NFTs or social tokens incentivize increased participation as they create a secondary liquid market for new digital assets.
Films and the film industry are digital tools that can change the behavior of an audience and influence the thinking of society. Hollywood has turned into a multi-billion dollar industry by presenting viewers with reflections of reality. Yet the film industry has been criticized for presenting only its own program, limiting minority groups’ access to performance. Thanks to the blockchain, producers, actors and directors no longer depend on big production houses to unleash their own creativity.
A funding mechanism
Film budgets have reached millions. Major blockbusters cost an average of $ 100 million, with smaller productions running around $ 400,000 or more, but the real costs are built into the industry standard. However, the gateway for independent and lesser-known producers has been crowdfunding networks, but their success relies heavily on the ability of the parties involved to generate a buzz. In short, a movement funded by crowdfunding can be brought to market if it impacts the rest of the film community.
In an article, Lisa Sun, president of Mogul Productions, pointed out that independent film producers have limited funding opportunities. Crowdfunding was a way for producers and directors to fund their projects. Now, however, the blockchain is addressing the concerns of cinematography. Activating a reliable and, above all, honest funding network creates network transparency.
A decentralized approach
Ariel Ashapira argued that blockchain is the industry’s tool for democratization because it decongests Hollywood centralization. Decentralized Pictures, a non-profit organization co-founded by Roman François Coppola, decentralizes the film industry by allowing the community to vote on future projects. As reported by IndieWire, attendees will be able to review the scripts, talk to the creators, and vote on various criteria based on the current funding cycle.
A community-driven production house only benefits the industry. Similar to how Netflix (NASDAQ 🙂 funds movies based on content reviews, a decentralized movie industry designs movies that are audience-centric and engaged. Thus, production will no longer be a one-way street as the producer’s agency will be strengthened by the opinions of the community.
Existing decentralized crowdfunding is not fully decentralized. Yet: The Infinite Garden, which raised $ 1.9 million, does not involve the community in the development of the film other than funding. Yet centralized blockbusters like Deadpool have exemplified the power of community over a film’s success, foreshadowing the future of community-driven films.
On the reverse
- It is not yet clear how several opinions and thoughts on the film can be voted on.
- The strong involvement of the community in the development of a film such as the screenplay limits the creativity of directors and screenwriters.
Audience participation equals better movies
Blockchain crowdfunding offers investors new financial incentives for participants. The benefits like MP4 files or other digital assets were priceless as they had no financial value. As Lisa Sun pointed out, issuing rewards as an NFT creates a market for a scarce asset, which users can trade, providing more incentives to participate in the fundraising cycle.
The gaming industry, which has similarities to cinema, has already created secondary markets where skins are traded. To this end, the film industry can add elements that increase participation and enthusiasm for a film.
The tokenization of the film industry is imminent. Social tokens can replace crowdfunding platforms like Kickstarter; NFTs can create new markets to entice users to engage in a movie. Finally, community-based film productions fund films based on a shared community consensus.
Why should you care?
Democratizing the movie industry means more opportunities for unknown directors and screenwriters to make a name for themselves. We believe that the film industry will always be centered around Hollywood, as producing a film for global audiences requires higher budgets in order to meet new technological demands. Still, small directors need a launching pad to increase their reputation in the industry, and decentralized films can facilitate that.
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