Several issues have hampered the expansion of Hollywood businesses in recent years. The Covid-19 crisis exacerbated these problems, with production halted, distribution cycles delayed and cinemas responding by postponing releases.
In addition to these issues, a more significant issue has threatened the growth and current establishment of this company over the years. It’s the nuances of technology. However, this is not the problem for Hollywood’s blockchain, NFTs and cryptocurrencies.
Recently, blockchain technology has been the leading force for good changes in various industries. For example, NFTs are an application of logic that has had a significant positive impact on entertainment industries such as Hollywood.
Hollywood is experimenting with blockchain and NFTs
Legendary Entertainment released two new unique NFT collections with Boss Logic and Terra Virtua Ltd in March and we were the first to notice. Their goal was to sell Godzilla vs. Kong themed NFTs. They brought forth limited edition collectible NFTs depicting the two fighting monsters. It felt revolutionary as a revenue stream, but it was just the beginning for selling NFT art.
Fox Entertainment has established a $100 million Creation Fund for the NFT industry. They do so through Blockchain Creative Labs to “run an online marketplace dedicated to the marketing and sale of characters, background graphics, and non-fungible gifs tokens (NFTs) associated with the program and other businesses that join the platform”.
The NFT business is already making great strides in the film industry by offering various services through Decentralized Autonomous Organizations or DAOs. A DAO is a self-contained, fully independent and transparent organization. It requires no intermediaries to do anything on behalf of its members and its monetary transactions have been documented on a blockchain.
DAOs combined with NFT implementation can increase ticket and product sales and potentially propel projects to blockbuster levels in terms of performance. Additionally, it has the potential to dramatically increase crowdfunding in this space. How could DAOs achieve this?
Put simply, Decentralized Autonomous Organizations (DAOs) are systems powered by smart contracts, or self-executing protocols on a blockchain that can assume certain rights and obligations if you are a member of that decentralized organization – with little or no active oversight by a central figure .
Anyone in the world with a smartphone and an internet connection can join such a network. The system can give tokens to participants depending on their contributions or other parameters chosen by the architects of the protocol. These items may grant specific voting or administrative rights, and their value may increase as more people wish to participate in the network.
While Hollywood is now being pushed onto the distribution side by movie pirates, industry sources claim it’s also being pushed onto the front end.
The temptation of potentially enormous fortunes from a potential blockbuster has kept the film business going. However, some ventures fail due to a lack of investment funds and never get off the ground. Additionally, investors may be put off by Hollywood’s convoluted income statement procedures.
Typically in Hollywood movies we use 24 frames per second. The Dream Frames strategy will allow investors to invest in individual frames to own shares in movies, allowing for very small investments. If the film does well, an investor’s token is worth more.
However, the fundamental changes that platforms like Dream Frames can bring may not happen tomorrow or any time soon. To disrupt a $136 billion industry, the new structure would need the support of major studios and cinemas worldwide, including streaming giants like Netflix and Amazon.
Hollywood is experimenting with cryptocurrency to diversify its revenue stream. There is evidence that the number of BTC ATMs in North Hollywood has increased. Additionally, there have been reports of its being used to finance movies, deep investments, selling NFTs to promote movies, and movies themselves.
Merch, Ticket and Easter Egg NFTs
The introduction of NFTs at the box office can lead to significant changes in many areas of the film business. With fans already spending millions on superhero comic cards, for example, merchandise in the form of rare NFT collectibles could become a big topic. Excitement can therefore be milked by the release of limited edition memorabilia of famous movie characters or even movie personalities.
In addition, the act of buying tickets can support the Ledger system. Film financing may also increase as monetization improves.
Andy Lian, the head of cryptocurrency trading platform BigOne, offers another blockchain usage. He suggests using blockchain technology and cryptocurrency to make product promotions interactive and responsible. It will take utility to a new level and increase film funding as they will be able to commercialize almost every minute.
Product placement can also make films more interactive by allowing consumers to search for Easter eggs in the film for incentives. NFTs have already adopted the motion format, which is no longer limited to the static arrangement of JPEGs as seen with the gifs converted to NFTs and more recent movies.
How can NFTs serve both suppliers and buyers?
The benefits of being involved in the NFT trade are numerous for sellers – artists, corporations, sports groups or anyone interested in selling NFTs.
First and foremost, NFT products allow entertainment companies to extend the life of their franchise IP. Warner Bros. is doing just that, releasing 100,000 NFTs of characters from the fictional Matrix universe ahead of the December release of The Matrix: Resurrections, the sequel to the famous 1999 film.
In this way, Warner Bros. not only optimizes the IP of an existing, already successful franchise, but also creates a stir around the image to come. In addition, they allow fans to interact with the series in unique ways. We expect the program to bring in $5 million, with each NFT selling for $50.
For fans, the value of NFTs is comparable to that of franchises and collectibles. Offering NFTs allows entertainment companies to connect with fans, but it also allows people to deeply engage with the brands, personalities, and stories they love. Additionally, the suggested scarcity of NFTs adds excitement and value to the consumer.
NFTs offer a novel way for fans to interact with and financially support their favorite properties. In addition, owning NFTs comes with some special usage rights. Finally, collectors view NFTs as a long-term investment because they believe their value will increase over time.