Blockchain's Potential to Resolve Challenges in the Film Industry
The world has witnessed the usage of bitcoins and cryptocurrencies for the last few years. Blockchain has become one of the hottest topics in the film industry and is currently discussed in the blogosphere with enthusiasm. But, does blockchain really have the potential to create valuable changes in film industry infrastructure or is it just a technology mirage? The world has become aware in this regard of how the recent developments in decentralized web and blockchain technologies are transforming the film industry in different aspects.
The combination of blockchain technology and the multimedia streaming platform will enable the companies to compete better with established brands like Amazon Prime Video, Netflix or Hulu. Blockchain will give investors, manufacturers, and content creators real-time access to behavioral analysis. This technology allows the managers to understand what works, what doesn’t work and to see precisely how the public reacts to micro-segment content. Furthermore, in removing the geoblocking, the decentralization of the streaming platform will play a major role.
It is hard to determine who has lost capital to make a film, why a film is costly to rent or own. While making a film is by definition a risky undertaking, opacity in the industry actually creates further risks. Since the market for film financing is illiquid, interest in a certain creative work is not easy to buy or to sell; the cost is higher and the value generated is lower. As everything is out of the question, people will not waste any time in trusting investors and the way they spend their money, and they will use all this extra time, energy, and passion to generate more alluring and relevant video content. Any asset, including an intangible creative work, such as films, maybe tokenized with blockchain platforms like Ethereum. Crypto tokens are issued to entitle buyers to a value that is proportional to the tokens they possessed, such as using a product or service or receiving profits.
Founder Chris Woodrow of Worldview Entertainment is planning to release a token called MovieCoin and is expecting to raise over $100 million by means of an Initial coin offering (ICO) to fund major film projects shortly. And, though Hollywood rejected the whole of Bitcoin and the extreme volatility around it, there were increasing numbers of companies building applications for the use of tokenomics. This technology can be applied in digital rights management, royalty tracking, and visual impact reduction in production costs throughout the blockchain networks. Blockchain technology is bound to change the way the entertainment sector and several other industries work in the future.