Will Hollywood Allow DLT To Take Control Over The Budgets
Blockchain and cryptocurrencies are topics that are becoming increasingly prominent in areas far from crypto-exchange and trading. For example, blockchain is increasingly associated with the entertainment industry, including the film and television industry. Budgets for film production have grown significantly while traditionally only those able to shoot a movie and their close network of financiers have had access to film and television productions as an investment asset.
But what should those without the means to invest large sums directly into entertainment projects do? The world of tokenization promises to answer this question. We already wrote about the initiative from Korea, but interest in blockchain and tokenization technology within the film industry is limited to this project alone. At the Block Seoul conference, we met and talked with Marcello MARI, who is actively advocating the merits of blockchain in the entertainment industry.
"Our project is the result of collaboration with Christopher WOODROW, a Hollywood producer behind well-known works including the Academy-Award winning film: “Birdman”, as well as “Black Mass” and "Hacksaw Ridge", MARI says. These successful projects all has one common feature: they are independently-financed films without the extensive budgets of major feature-films. The democratization of film investment opportunities to a broader audience of investors outside the industry is a long-standing, urgent need that many film producers wish to solve and can do so with the help of the blockchain.
"In this case, digital asset is addressing the financing and payment challenges outlined above by issuing two types of token. Our smart fund tokens represent an ownership stake in the film and entertainment assets within our smart fund portfolio that are open to accredited investors for purchase as a means of entry into film financing at lower cost and higher liquidity than traditional direct investments compromised by operational overheads,” said MARI.Separately, we will enlist the support of entertainment industry service providers and talent to establish a separate token, operating as an industry-specific currency. With underlying technology allowing a network of stakeholders to monitor how funds are spent. The tokens prevent third-party gatekeepers, including aggregators and royalty collection services, from holding onto capital owed to entitled parties for longer than necessary, a major win for those who earn their keep on studio lots and behind the camera." Nevertheless, an air of mystery still surrounds blockchain and everything connected with it is. The cinema industry can be very traditional and conservative, with back-end innovations being rarer than in other industries. There are some examples in the sphere of logistics, distribution or production, but few systematic and profound applications of the technology exist at this time. For these reason, a working application of blockchain and tokenization has boundless potential in Hollywood. Marcello MARI is confident that adoption of the technology will accelerate as people in the film industry recognize the profitability, transparency and security merits of using blockchain.
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