Blockchain Can Revolutionize Indie Filmmaking

Key Takeaways

• Blockchain-based crowdfunding has the potential to revolutionize film financing
• Fans could have a say in which movies are made, influence the storyline, and be rewarded for their backing with valuable digital merchandise or part ownership of the project
• Non-fungible tokens (NFTs) can add value to crowdfunding

The filmmaking industry is synonymous with innovation and trail-blazing new developments. It’s barely more than a century old, and yet the techniques and distribution processes used to make films and get them in front of audiences have changed dramatically over the last hundred years. The earliest movies were shot in black and white and didn’t even have any audio, but nowadays a trip to the cinema will see you immersed in the dizzying effects of CGI and surround sound and feel almost as if you’re part of the film itself.

However, one aspect of filmmaking hasn’t really evolved at all. That is the funding process, and it’s one that blockchain startup platforms like Metatime, with its MetaMovie studio, and Mogul, through innovative use of NFTs, are hoping to change.

To get a big movie idea onto the big screen, budding filmmakers have few options other than to try and get their production commissioned by a big movie studio like Sony Pictures or Warner Bros. But doing so is incredibly difficult, and that’s what makes life so challenging for indie filmmakers.

At least, that used to be the case. With the advent of the internet, the concept of “crowdfunding” has emerged through platforms such as Indiegogo and Kickstarter. However, while sourcing financing from hundreds of different people is an innovative concept, it’s also restricted by the reach of those platforms and an inability to provide real incentives to investors. It’s for these reasons that blockchain-based crowdfunding looks so promising for the film industry.

NFTs Enabling Digital Scarcity

One of the most transformative blockchain technologies is the non-fungible token, or NFT, which has already enjoyed big success in the world of digital art. NFTs are one-of-a-kind digital certificates that are commonly used to represent art, but can in fact be applied to almost anything. While digital artists like Beeple have stolen most of the headlines around NFTs due to their multi-million dollar sales, there are lots of other potential use cases.

The benefit of NFTs is that they enable scarcity, assured by the blockchain. For indie filmmakers, NFTs could provide a way for them to offer new incentives to crowdfunders and encourage them to invest in their movie ideas. Early crowdfunded movies on platforms like Kickstarter raised money by offering artwork posters or exclusive, behind-the-scenes footage to investors. But these types of collectibles don’t have scarcity, and so they lack value. A DVD-version of the director’s cut, for example, can be copied millions of times and uploaded to the internet, where it becomes available to everyone for free. As such, there’s no real incentive for users to fund film production.

But by issuing behind-the-scenes footage as an NFT, and creating a reliable and liquid secondary market for these assets, suddenly these collectibles gain real value. Fans get to own a piece of intellectual property related to the film when they fund it. They could even be granted ownership of that movie, allowing them to claim a portion of the revenue it generates. In other words, blockchain and NFTs will create a deeper relationship between filmmakers and fans, who can share in the movie’s success.

Fans Can Make Their Voices Heard

Crowdfunding movie production on the blockchain also enables fans to have their say on the storyline. A good example of this is GenZeroes, a live-action, NFT-integrated movie and comic book series developed by Looking Glass Labs that has established a cult following since launching last year. The production of GenZeroes is funded exclusively by sales of its NFTs, and holders are rewarded with exclusive early access to new episodes and the ability to vote on storyline twists for the upcoming second season.

The blockchain film studio Mogul similarly enables fans to get involved in its productions. It has created a system where fans can purchase tokens and vote on which movie ideas are funded through its DAO and made into films, providing filmmakers with an unassailable level of social proof of support for their ideas, which can be used as leverage in negotiation with distributors. One of Mogul’s biggest hits so far is Revival, which tells the story of one woman’s secret that forces the destiny of three people to intertwine.

Metatime’s upcoming film funding initiative, called MetaMovie, will expand on these concepts by allowing anyone to submit their movie ideas or scripts to try and obtain funding to bring it to life on the big screen. With MetaMovie, directors will be able to propose a scenario and budget for the community to evaluate, and even enable fans to elaborate and expand on the concept. If a movie gains the community’s approval, it will then be tokenized, with its backers becoming a shareholder and earning a share of the income it generates. To fund MetaMovie proposals, fans must first obtain MetaCoin tokens that will launch through a public presale on March 3, with 100 million MTC tokens up for grabs.

The Future Of Film Financing

Blockchain-based crowdfunding has a unique potential to aid indie filmmakers, allowing fans to choose which movies are made, influence the storyline, and be fairly rewarded for their backing, either with valuable and scarce digital merchandise or part ownership of the project they back.

It’s a funding method that’s sure to create an extremely loyal and hardcore following for each movie that’s made, helping to aid its distribution. It promises to connect film directors with their fans in a way that was never possible before. Just as the innovation of audio technology helped to bring about the rise of Hollywood, blockchain technology will lead to a revolution in indie filmmaking.