The film industry has long been influenced by changes in technology. The ability to create whole new worlds and characters with amazing special effects has made movies feel more real than ever. One technology that’s having an impact may surprise some people: blockchain. This is helping to create an ecosystem that’s more accessible, efficient, and transparent than ever before.

The film industry has numerous long-standing issues, and the use of blockchain has proven the perfect solution. As you read on, we’ll be looking at exactly how, as well as considering other industries where it’s making a mark.

Blockchain’s Impact Across Industries

The impact of blockchain is far from being limited to the film industry. It’s influence is being felt in a variety of sectors, such as:

  • Finance: Cryptocurrencies, such as Bitcoin and Ethereum, allow for payments that are fast and cross-border. This does away with the reliance on traditional banking systems and the immutable records ensure transparency, with the risk of fraud reduced.
  • Healthcare: With blockchain, there’s the opportunity to enjoy secure sharing of patient data. This helps to ensure records are held securely and can only be accessed by authorised people.
  • Supply chain: Companies are using blockchain so that they can enhance the transparency by tracing the origin of goods. It allows the tracking of products from source to sale so ethical sourcing and quality control are improved.
  • Gaming: Blockchain is allowing players to own in-game assets such as NFTs. It is also being used at crypto casinos such as Bety.com, to allow for a more secure playing environment.

Blockchain’s Role in the Film Industry

Whether looking at the latest Hollywood blockbuster or a small independent production, the role of blockchain in the film industry is continuing to grow. Here’s a look at exactly how:

Direct Engagement Through Disintermediation

With blockchain, filmmakers have the power to bypass intermediaries and this allows them to have a direct connection with their audiences. When looking at platforms such as SingualrDTV and FilmChain, these allow for decentralised distribution meaning that creators can upload content and receive direct payments. This leads to a reduction in costs so that creators get to keep more of their revenue. One example of how blockchain can simplify distribution can be found by looking at No Postage Necessary, released in 2017. With blockchain marketplaces, filmmakers are also able to crowdfund projects and include their audiences with this. This leads to a fan base that is more engaged than ever before.

Blockchain-based platforms also allow filmmakers to interact with audiences in real-time. They can host live sessions and exclusive screenings that allow a deeper connection with fans. This leads to increased loyalty and participation.

Protecting Intellectual Property

Privacy and copyright have long been issues in the film industry and these have become even more challenging since everything has become digitised. With blockchain’s immutable ledgers, filmmakers can register their work securely and provide transparent proof of ownership. Platforms are now allowing creators to track any unauthorised use and to protect their intellectual property. As well as this, smart contracts are being used so that licensing agreements can be automated. This gives creators the ultimate in control over their content.

Blockchain systems can also record a detailed chain of ownership. This makes it clear who has rights to both distribute and monetise any content. This level of transparency gives an extra layer of trust between creators and collaborators.

Transparent Royalty Payments

With blockchain’s smart contracts, royalty distribution can be automated. This ensures that all payments are on time as well as being accurate. With this system in place, there are less disputes and the revenue sharing model is fairer. This means that there’s more motivation for creators to get involved in the industry. With smart contracts, there’s also real-time tracking of viewership and revenue. This gives creators a clear overview of their income streams.

With delays in royalty payments done away with, blockchain boosts trust between artists and producers. It means that independent filmmakers and artists can be sure of prompt payments without months of chasing.

Innovative Film Financing

With blockchain there are new funding models available. These include the likes of Initial Coin Offerings (ICOs) and Initial NFT Offerings (INOs). With these, filmmakers are able to raise funds by offering digital tokens or NFTs that are used to represent a stake in the project. The film The Happiest Place on Earth used INOs to get investors on board. They were able to trade NFTs for potential profits. The integration of blockchain financing models allows filmmakers to secure funding but it also builds a loyal community of investors who share in the success of projects.

This approach also democratises film financing. It allows people from around the world to invest regardless of where they are based or any financial barriers. This level of inclusivity is likely to lead to a much broader range of films being made.

Revolutionising Distribution

The use of blockchain disrupts the distribution models that the industry has been used to. It does this by allowing direct content sharing with the desired audience. Projects such as Satoshi’s Treasure highlighted how it’s possible to tokenize films and distribute NFTs. This leads to a unique viewer experience. With this approach, filmmakers are no longer reliant on large studios to showcase their work to a global audience.

With intermediaries removed, filmmakers have a greater level of creative control. This allows them to experiment with the different distribution models that are available such as releasing content in smaller segments with interactive elements.

you wouldn't download a car

Tackling Fraud and Piracy

Blockchain means that content distribution is recorded transparently, and this reduces piracy. The use of smart contracts and watermarking technologies assist with tracking and preventing unauthorised use and this means that creators will always be compensated. The decentralised nature of blockchain also means that pirates will find it almost impossible to alter or replicate content without being detected.

Real-time alerts are also provided through the use of blockchain. This means that creators are able to take swift action, leading to a more secure environment.

Micropayments for Content Access

Blockchain also has the ability to allow micropayments to be made. This means that audiences are able to pay for specific scenes or episodes with no commitment to purchasing full-length content. This level of flexibility brings benefits to creators and viewers alike. For creators, they’re able to monetise their work in small increments. For audiences, there’s the chance to enjoy access that’s affordable with no long-term commitment. There’s also the chance to access exclusive content such as paying for a behind the scenes look or director commentary. This allows for an experience that’s more interactive and immersive.

The use of micropayments also means that audiences are able to support creators directly. This leads to a much stronger connection between filmmakers and fans. The impact of this engagement is that creators are encouraged to carry on creating.

Enhanced Advertising Metrics

The film industry has a heavy reliance on advertising, but it has always been challenging to measure the success of any campaign. With blockchain, there’s access to accurate and transparent metrics. These include the likes of clicks, views, and impressions. This gives advertisers the clearest overview possible on the return on investment.

Blockchain also gives advertisers access to verified audience data. This means that they can then target campaigns more effectively. The result is reduced wastage and an overall boost to the effectiveness of marketing efforts.

Crowdsourcing Talent and Ideas

Filmmakers have the ability to post projects on blockchain platforms. This allows writers, directors, and actors to contribute as well as audition for roles. The use of smart contracts ensures that there’s 100% transparency when it comes to payments and agreements and this ensures that there’s trust between all involved.

There’s also the ability for collaborators to track their contributions to projects. This means that they can always be sure of being properly credited for their work.

Creating Secondary Revenue Streams

When filmmakers tap into what blockchain has to offer, they can benefit from additional revenue streams by using NFTs. The collectibles that are created can be sold to fans and this means that there’s more money coming in while also leading to fans being more engaged than ever.

Offer time, these digital assets increase in value. This allows fans to enjoy an investment opportunity while supporting something that they’re passionate about.

Final Thoughts

It’s clear to see that blockchain is transforming the film industry as a whole. Its ability to address long-standing issues means that it’s a technology that simply can’t be ignored. By combating piracy and ensuring prompt payments, it’s making the industry more appealing to creators who may have experienced issues in the past.

The ability to take more control also means that the future of films is bright. Smaller independent creators have the freedom to power ahead without the reliance that they previously had on the bing names. This is good news for creators and even better for audience.

Header Image by Katka from Pixabay