Several issues have hampered the expansion of Hollywood businesses in recent years. The Covid-19 crisis worsened these issues, which caused production to halt, distribution cycles to delay, and theaters to respond by postponing releases.
In addition to these issues, a more significant problem has jeopardized this business’s growth and current establishment over the years. It is the nuances of technology. However, this is not the issue 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 one use of logy that has had a significant positive impact on the entertainment industry, such as Hollywood.
Hollywood is Experimenting with Blockchain and NFTs
Legendary Entertainment published two new unique NFT collections with Boss Logic and Terra Virtua Ltd in March, and we first noticed it. Their goal was to vend Godzilla vs. Kong-themed NFTs. They yielded limited edition, collectible NFTs showing the two monsters battling. As an income stream, it felt revolutionary, but it was only getting started so as to sell NFT art.
Fox Entertainment has established a $100 million “creation fund” for the NFT industry. They’re doing it through Blockchain Creative Labs to “operate an online market dedicated to marketing and selling characters, backdrop art, and Gifs non-fungible tokens (NFTs) associated with the program and other enterprises that join the platform.”
The NFT business is already making great strides in the film industry by providing various services via decentralized autonomous organizations, or DAOs. A DAO is a self-contained, completely independent, and transparent organization. It does not require intermediaries to do anything on its members’ behalf, and its monetary operations have been documented on a blockchain.
DAOs, when paired with NFT implementation, can increase ticket and product sales, potentially propelling projects to blockbuster levels in terms of performance. Furthermore, it has the potential to increase crowd-funding in the field dramatically. How might DAOs accomplish this?
Simply put, decentralized autonomous organizations (DAOs) are systems operated by smart contracts or self-executing protocol on a blockchain, which can commit certain rights and responsibilities if you’re a member of that decentralized organization — with little or no active supervision by a central figure.
Anyone on the globe with a smartphone and an internet connection may join such a network. The system may give tokens to participants depending on their contributions or any other parameters that the protocol’s architects select. These items can grant specific voting or administration rights, and their value may rise as more individuals want to engage in the network.
While Hollywood is now being pushed on the distribution end by film pirates, industry sources claim it is also being pressed on the front end.
The temptation of potentially enormous riches from a potential box-office smash has kept the film business humming. However, some ventures fail due to a lack of investment funds and never get off the ground. In addition, investors may be scared off by Hollywood’s convoluted profit-and-loss accounting processes.
Typically, we use 24 pictures or frames per second in Hollywood films. The Dream Frames strategy will allow investors to invest in individual frames to own interests in movies, allowing for highly tiny investments. If the film does well, an investor’s token will be worth more.
However, the fundamental changes that platforms like Dream Frames may bring about cannot happen tomorrow or anytime soon. To disrupt a $136 billion industry, the new structure would need the backing of major studios and theatres worldwide, including streaming behemoths like Netflix and Amazon.
Hollywood is experimenting with cryptocurrency in an effort to diversify its revenue source. Evidence shows an increase in the number of BTC ATMs in North Hollywood. Additionally, there have been reports of it being used to finance movies, deep investment, selling NFTs to advertise movies, and films themselves.
Merch, Ticket, and Easter Egg NFTs
Introducing NFTs to the box office can result in significant changes in many elements of the film business. Given that fans are already spending millions on superhero comic cards, goods in the form of rare NFT collectibles, for example, might become a big issue. The excitement may thus be milked by releasing limited-edition memorabilia of famous movie characters or even movie personalities.
Furthermore, the act of purchasing tickets may support the ledger system. Film financing may also increase if monetization improves.
Andy Lian, the head of cryptocurrency trading platform BigOne, provides another blockchain use. He proposes using blockchain technology and cryptocurrency to make product promotions interactive and responsible. It will take usefulness to a new level and increase movie funding because they will be able to commercialize almost every minute.
Product placement may also make movies more interactive by allowing consumers to look for easter eggs inside the film to gain incentives. NFTs have already adopted the motion format, no longer limited to the static arrangement of JPEGs, as seen by the gifs and more current films converted into NFTs.
How can NFTs serve both suppliers and buyers?
The benefits of engaging in the NFT trade are numerous for sellers – artists, corporations, sports groups, or anyone interested in selling NFTs.
First and foremost, with NFT products, entertainment companies may extend the life of their franchise IP. Warner Bros. is doing precisely that, releasing 100,000 NFTs of characters from the fictitious Matrix universe in advance of the December release of The Matrix: Resurrections, the sequel to the famous 1999 film.
By doing so, Warner Bros. not only optimizes the IP of an existing, already-successful franchise but also creates buzz surrounding the upcoming picture. Furthermore, they allow fans to interact with the series uniquely. We expect the scheme to produce $5 million, with each NFT selling for $50.
For fans, the worth of NFTs is comparable to that of franchise products and collectibles. Offering NFTs allows entertainment firms to communicate with fans, but it also allows people to engage very much with the brands, personalities, and stories they like. Furthermore, the suggested scarcity of NFTs increases the consumer’s excitement and value.
NFTs offer a novel method for fans to interact with and financially support their favorite properties. Furthermore, owning NFTs comes with some special usage rights. Finally, collectors view NFTs as a long-term investment because they believe their value will rise over time.