IS BLOCKCHAIN THE FILM BUSINESS NEW 2.0?..... Will blockchain technology provide the basis for a new and improved worldwide film industry/business and the distribution sector?
The media industry is always disrupted by new technologies……….from broadcast ; to cable; VHS; DVD; broadband, streaming etc .
The next era that will take place in the film/media industry will likely be the emerging force of BLOCKCHAIN and the distributed ledger technology.
The film industry new 2.0 !!!
The blockchain is a decentralized digital ledger that offers a way to verify and record transactions over a secure, encrypted platform. It will deliver much-needed transparency to all types of businesses including film, with its intricate deal structures and often-antiquated reporting systems. Originally created and utilized for Bitcoin in 2009, the block chain technology has many attributes that may fundamentally change the way business is conducted.
Some areas that blockchain could significantly alter transaction flows in the film industry:
• Transparency, efficiency and security
• Crypto Crowdfunding for Indie films
• Sales and Distribution Networks
• Compensation Through Smart Contracts
• Copyright and Ownership
• Combating Piracy
• Elimination of middlemen
• Crypto-Linked Streaming Services
• Global Streaming Platforms
• More Expansive Digital Rental and Ownership Models
A new era is on the horizon for the film industry…… there is much more to come.
MAY THE BLOCKCHAIN FORCE BE WITH YOU !!!
My plan is to go over each of the sections listed above and explore how Blockchain technology can improve the film business and the distribution arena. Ive written a number of books on the film business and this will be a new book soon.
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John Rodsett very timely; perhaps NFT financing,
the art market has been roiled by NFTs since Q1 this year, many new players and financial repercussions, and yet the aesthetics of the newly-charted space striving to remain relevant to traditional channels in galleries, museums and collectors,
is it a flash in the pan because it's really about the format and financing or is it a huge influential shift in IP law? The lawyers will be the ones to make the most money.
Yet large film-industry players could bring in blockchain financing quite easily; but with what the Chinese gov't did earlier this year shutting down server farms it's clear that central banks can still influence if not control this mode of financing and make it a fragile mechanism,
so good old cash, debt and equity financing by established bankers will likely still be the standard until or unless cryptos become more than 5-10% of the global financial markets;
do you think that will happen in 5-10 years? Sooner? Ever? Has it already happened and is simply invisible / undisclosed??
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Rohit Kumar certainly I can see that your take on the situation is grounded and accurate, albeit leaning towards some subjective value judgments,
only we could say that all of "capitalism" is a pyramid scheme in the same fundamental aspects,
as with so many elements of the employment market, corporate start-ups and private equity shenanigans, just like any effective Ponzi scheme, it works until it doesn't and then like musical chairs whoever is left out at the end eats the losses.
Arguably that tendency towards catastrophic failure tends to manifest in the safety-valve of a self-engineered global recession at least once every ten or fifteen years, engineered by the financial services industry, which in USA is growing towards almost 10% of GDP (much more if you count the government banks in their pockets).
The Fed printing $4 trillion in funny money last year and sweeping it under the rug makes the whole system so precarious as to be an ongoing MLM scheme, so I'd see cryptos as being a welcome addendum to the basic philosophy of 21st-century global capitalism: "grow or die."
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Rohit Kumar coherent thoughts and points well-taken, I appreciate your level in a casual conversation and of course it's interesting to touch on a debate in this forum without going way down the garden path to the rabbit hole.
Maybe the NFT rapid bubble this year in the art world will quickly subside to a jaded consumer base and be the canary in the coal mine.
And we can likely expect that the film business will continue to run on financing via debt, equity and hard cash.
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Rohit Kumar yes I think that's exactly right and many players will necessarily get burned or jaded once the bubble repeatedly flattens out, or perhaps it remains a specialized boutique players' sandbox.
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Thanks for sharing this, John. The film industry is still at the very early stages of discovering the potential of blockchain. I have seen attempts in financing and distribution. Also, how will the flow of financing funds and revenues and recoupment be benefited by blockchain?
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This lounge is more to do with distribution but Ill tackle funding a bit later . Suffice to say ...movie investors can make sure their money is being used for film-making purposes, and companies like MovieCoin have even created cryptocurrency for movie investors to be able to track their funds and keep film makers accountable as well..
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And don't forget smart contracts.............more soon
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Facet.TV is launching a large series of exclusive NFT offerings and welcomes other producers to contact us (team@facet.tv) if they are interested in participating. "Traditional" cryptocurrency has literally no place in film finance, despite the wish to the contrary, and literally dozens of attempts to use it since the advent of bitcoin. Why? because the purpose of a blockchain is "transactional security" plain and simple, and that never has been and never will be an issue in film finance. Further, it is a minefield of SEC issues. There are other reasons. However, NFTs, which are not new but currently coming into vogue, are in fact simple digital merchandise, and their use makes a lot of sense in ancillary rights for producers.