So BlockbusterDAO was not the right home to produce our film. So let’s take a look at the great opportunities from Web2 – crowdfunding. You can always fund at least one indie movie with crowdfunding. And of course, there are now several Web3 sites that want to fund movies using blockchain technology. And mostly using NFTs.
At first I thought of MOVIECOIN. MovieCoin offers a decentralized movie financing platform that lowers the entry barrier for fans and allows directors and producers to fund their movies. In short: Moviecoin.com decentralizes and democratizes the world of film financing, giving filmmakers and consumers more control. And if Russel Crowe does that for his movie “Prizefighter,” there seems to be something about it. But a look at MovieCoin is enough to see that this kind of crowdfunding is not really interesting for our John Vitalik Wick action hit:
MovieCoin promises DEMOCRATIZATION of the film industry
So we read at MovieCoin: “Investors no longer need $ 100,000 + to participate in film financing. By investing with $ MOVIE, you lower the entry barrier for film industry investors by 10,000 times.”
This is of course correct, insofar as investors can buy NFTs that cost € 100 or less. However, you only own about 0.016% of the film if the budget is around € 100,000,000. And in order for me as a filmmaker to have my budget of € 100,000,000 total, I need around 1,000,000 investors buying NFTS for € 100. Which also means you need 1,000,000 NFTs. Of course, the production of so many NFTs also does not cost insignificant sums. And do not forget the embossing process and such. So our budget will continue to increase.
So to make a bigger movie like ours, financing with MovieCoin does not seem to work. But the fact is that there are some examples where movies have been funded using blockchain technology. Let’s take a look at how other manufacturers approach this.
Niels Juul, the producer of “Irishman”, Martin Scorsese’s Netflix gangster epic, has also formed a DAO – KinoDao – (along with NFT Studios) after receiving a letter from the SEC (Securities and Exchange Commission). According to the SEC, NFTs for film are commodities and therefore can not simply be sold.
This, of course, sheds a whole new light on the situation.
So NFTs can not just be sold to make a movie. Interesting.
After hiring a law firm, NFTStudios concluded that the best option would be to set up a DAO, a decentralized, autonomous organization that uses management tokens (in this case, tokens are NFTs) to make collective decisions.
So now KinoDAO is a film production company created by NFT Studios and established the structure of a “Decentralized Autonomous Organization” or “DAO”. Access to DAO requires ownership of NFTs (non-fungible tokens) issued by DAO, with voting rights granted through the allocation of DAO’s native governance token, $ KINO.
Now that sounds interesting, but it’s more about funding an independent film with a medium budget. This is what the White Paper says:
“In recent years, independent conventional film production and its financing has become both slow and cumbersome, as many productions take almost a decade from intellectual property and script development to cinema publishing. Many high-profile projects fail for various reasons, but mainly due to an outdated one. and lengthy process of getting projects on the market. ”
KinoDAO was founded with the purpose of changing this by bringing film production along with Web3 technologies and protocols. The purpose of KinoDAO is not to fight the film industry, but to further develop the existing paradigm:
“Reducing production costs, reducing filming times, reducing franchise fatigue through diverse content, and empowering a decentralized community to take an active role in shaping the films they want to see and empowering independent filmmakers.”
Juul said in an interview: “I know so many amazing scripts out there that are not being made into a $ 10, $ 15, $ 20 million movie because the studios are focused on Marvel stuff and franchising.”
And that’s exactly what we want to create: a franchise. We dream of sequels, action, blockbusters, big premieres.
But problems are not only encountered with big movies at the moment. Many filmmakers dedicated to film3 came together during the Cannes Film Festival. As Phil McKenzie, co-founder of FF3 said in an interview:
“We’ve all learned a lot. People really loved the concept, the platform and the vision, but we really need to change the usability and accessibility and some of our marketing and focus.”
Unfortunately, it became much harder and more unexpected to get film funding this way.
Director Miguel Faus, who launched an NFT crowdfunding campaign for the film adaptation of his short film Calladita, agrees. He said:
“Right now, it’s hard to get someone who’s never owned a cryptocurrency to buy their first NFT.”
Then there are decentralized images. Founded by producer Roman Coppola and members of Francis Ford Coppola’s American Zoetrope production company, DAO has already received a $ 300,000 grant from director Steven Soderbergh. Decentralized Pictures co-founder Mike Musante described the project as “an evergreen, self-sustaining film fund,” but noted that the data generated is also of interest.
These could be taken from the DAO’s voting process and thus influence the development of future films. “We believe that we can get large amounts of opinion data, which we can then analyze and help us make decisions about which projects we should finance.he said in an interview.
Camila Russo, author of The Infinite Machine, has launched a crypto-crowdfunding campaign for the film adaptation of her book on the making of Ethereum
The funding was appropriately done at Ethereum, where NFTs gave owners the opportunity to visit the film set, appear in the film and receive invitations to the film premiere. Since then, “Alien” director Ridley Scott’s Scott Free Productions has signed on to produce the project. Which means something like – Scott Free has to find other ways to fund in order to handle this project.
After this brief glimpse of the French Riviera, my hope is that a real blockbuster can be funded via Web3 by sinking.
But wait a minute …
Has not Vitalik also christened “Stoner Cats”? An animation show created and funded exclusively on Web3. Maybe we should think about making an animated film? With this idea, I was looking for funding opportunities for animated films, and I came across something very exciting: Gamifying the film industry.
And how it could work, I will show in the next article. Part 4. Gamifying the Film Industry.
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