by Yevgeny Baranski
Lights, camera, Bitcoin! The rise of cryptocurrency is perhaps one of the most revolutionary advancements in the technological world that is taking over the film industry. We are talking about new ways of operations within the industry. We are speaking about new inspirations for movies and a whole variety of new projects.
Now, the involvement of this technology is at its highs. Actually, a recent report by Mordor Intelligence shows that blockchain in the media, advertising and entertainment market will reach USD 2.68 billion by the end of 2025. And here is the crazy part. Experts approximate the market to grow at an iconic CAGR of 78.49% and hit USD 48.5 billion by 2030. Isn’t that just massive?
But, well, let’s try and dive in to see what major impact this technology has brought to our beloved entertainment industry. Are there any significant changes that crypto and blockchain are bringing, or is it just noise?
Innovative film financing
If you are a filmmaker or have interacted with one, you should know that financing is perhaps one of the most challenging things in the industry. Well, at least this is true for small and medium-sized studios; leave Hollywood out of the picture. However, blockchain technology has inspired new forms of financing that are proving efficient.
One prevailing form of financing is Initial Coin Offering (ICO). Especially now that the bitcoin price is going through the roof, this mode of financing is proving to be very significant. Well, the mother of all crypto, Bitcoin, has been going off the charts, having crossed the USD 100,000 mark at the end of 2024. So, many investors have really made significant moves with it.
Another form of financing is Initial NFT Offerings (INO). Actually, a film like “The Happiest Place on Earth” used this form of financing to get investors on board. In 2023, Decentralized Pictures, a company co-founded by Roman Coppola (son of legendary director Frank Coppola), was part of the funding of the movie “The Quiet Maid.” Most funding for this film came through the sale of NFTs.
Another documentary, “Vitalik: An Ethereum Story”, used NFT crowdfunding to raise funds for its release. Can you imagine that around 660 wallets were responsible for raising over 1,035.96 ETH? This is around USD 2.8 million in current market price.
All this is just to say that the intersection between crypto and the film industry is making it a little bit easier for moviemakers to sort out one of their biggest challenges.
Protecting intellectual property
Another big menace for the film industry, and especially because of digitisation, has been the issue of privacy and copyright. For example, in Kenya, the issue of online piracy of films is rampant, with people being able to get access to international films in movie shops and traders on the streets. Sadly, this issue is a fluke all over the world, with many illegal sites to watch movies cropping up on the internet. A 2022 study even showed that by the end of that year, piracy would have cost the industry approximately USD 51.6 billion. You can actually believe what Adrian Linde, the CTO of Xchange Monster, said. Piracy is not only one of the biggest threats in film but also the most significant threat.
Now, blockchain is offering a solution where filmmakers can register their works on immutable ledgers. You see, traditionally, filmmakers had to rely on third-party organisations in order to register and protect their IP. However, with blockchain technology, you are able to record and verify your ownership rights both securely and transparently. Once you key in the information on the blockchain network, there is no one that can tamper with it.
In addition to that, the use of smart contracts allows for automated licensing and distribution. Now, filmmakers do not have to worry about not receiving their full compensation for their work.
Reinventing distribution
Traditionally, the distribution of films has been handled by large studios, distributing companies and theatres. This has made it actually almost impossible for upcoming and independent filmmakers to gain the reputation that they deserve and gain exposure to huge audiences. However, blockchain the saviour, has emerged, presenting a solution that might potentially change how distribution happens.
Now, since blockchain technology is a peer-to-peer network, there is no central authority. In fact, Akash Takyar, the CEO of LeewayHertz, explains how video makers benefit from the decentralised mechanism of blockchain as they just directly publish and get the films to their audience without having to go through an intermediary. Now, with intermediaries out of the picture, filmmakers have a higher level of creative control. Now, they can experiment with different distribution models.
Wrapping up
You can agree that the interaction between blockchain technology and the film industry is becoming quite a healthy relationship. And actually, it is making it easier for filmmakers, giving them the opportunity to reap maximum benefits from their hard work.
