NFTs for Films and Filming Industry
Film production can be an expensive activity. At some point, film studios and filmmakers may run out of funds to complete the project. Such cases are critical since they may lead to the death of the project and a huge loss of funds. Film tokenization can help solve this problem and many other challenges facing filmmakers including copyright violation. Creating NFTs for the film and selling them beforehand in exchange for selling rights and licensing is an effective way of raising funds to complete a project.
- Raising funds is possible by creating tokens for the film and selling them to those who need selling rights and licensing. Studios and film producers can use this method to supply their financial inefficiency that may hinder the completion of the project. Producers only need to create a pilot program to convince potential customers to buy the tokens. Any interested party can participate in buying the tokens hence a wider market pool. This model creates a soft entry to the filmmaking industry by enabling young and small projects, without sufficient capital to get finances beforehand to fund the project.
- Tokenization creates high-volume liquidity for the film asset. Anyone anywhere can buy the tokens and acquire licensing for the film at any time. Increased liquidity helps with buying and selling of the film assets with a short turn-around time. A film with high liquidity is often more successful in terms of revenue generation. Greater liquidity can also help manage high price fluctuation.
- Filmmakers and studios can cut the red tapes by allowing peer-topeer transactions and eliminating the middle parties. The integration of smart contracts in a tokenized film enables the selfexecution of transactions safely and securely thus enabling efficient transactions between film buyers and sellers. Faster transactions are also achievable. Additionally, all the transactions are trackable hence helping to prevent fraud.
- Tokenization of films creates scalability that enables studios and filmmakers to customize licensing and copyright terms to suit the customer’s preferences. Scalability reduces the barrier and encourages more buyers to participate hence greater capital inflow.
- Filmmakers and production studios can access additional income as they can receive a royalty from each resale of their film’s license. You can sell the license for your film to Netflix with an agreement that anytime they redistribute the license, you are set to receive a percentage of the amount paid. Such agreements are captured in a smart contract that executes them automatically, hence no risk of fraudulent acts. Tokenization leads to a reliable recurrent income.
- Tokenization helps in copyright protection. Through NFTs, every party along the distribution chain can identify an authentic supplier with the rights to distribute the film. Even consumers can identify authentic suppliers. Therefore, tokenization creates a good environment to fight the illegal distribution of films that constitutes copyright infringement. Filmmakers and legal distributors can enjoy a safe and transparent market environment.
Tokenization of films solves some of the major challenges affecting filmmakers and distributors. Raising funds for a film project is now possible through selling NFTs. The immutability and transparency of NFTs help in curbing illegal distribution of film assets. Tokenizing your film can also help you get recurrent income by earning a piece of the bid fee each time your film license is sold. While some marketplaces may keep 100% of these fees to themselves, platforms such as Zloadr, reward you as the rightful owner of the film asset.