After making massive strides in revolutionising the art industry, Non-Fungible Tokens (NFTs) are set to overhaul how movies are being funded and decentralise it to enable NFT holders to partake in the process.
Usually, the preserve of certain oligarchs who have created a well-established moat by concentrating power into their hands, a slew of NFT projects are now introducing a global audience to a new way of funding movies and allowing its holders to get an equitable share in the box office revenues.
Arabian Camels, an NFT community that is creating a $50 million Hollywood movie “Antara” based on the life of ancient Arabian knight Antarah Ibn Shaddad, has announced its NFT drop on January 14, with the integration of cryptocurrency exchange MoonPay. The Antara Movie NFT is the first NFT that allows a buyer to digitally part-own rights of the Hollywood Movie, enabling holders to partake in the box office and streaming revenues.
“The impact that Arabian Camels will have on Hollywood is immense. This is an exciting and revolutionary move that will inject a whole new lease of life into the movie business,” said Josef Brandmaier, a Producer of ‘Antara’.
While the basic tenets of these Movie NFTs are like other NFTs, the marriage of both digital and real worlds is what sets these NFTs apart from the crowd. Not only do NFT holders enjoy part-ownership of the content being represented through the token or of the movie rights itself, but they can also stake these NFTs to earn yields while the movie is still in production.
This enhances the overall appeal as NFT holders can choose to remain invested throughout the movie’s journey while also employing their capital to earn market-beating returns on their digital tokens. Moreover, members of such NFT communities can even get roles in the movie being produced, be given credit as producers, and even join the production team for exclusive gatherings on the real movie set with the cast and crew.
Garrett Minks, CTO of RAIR TECH says there are two precedents required for the movie industry to transform into a web3 business model – DAOs (distributed autonomous organisations) for quick and scalable capital formation and NFTs (non-fungible tokens) as authentication credentials to unlock streaming video.
“Last year, the ConstitutionDAO proved how fast a community could be galvanised to fund an issue by raising over 47 million dollars in less than a week to purchase a copy of the US Constitution. More recently, the BlockbusterDAO formed around reviving the Blockbuster brand as a Web3 business. Combined with streaming infrastructure that can read the blockchain at scale using services like Moralis, there will be a revolution in creator-centric funding for movies where funds are distributed in a more equitable manner for all parties,” Minks said.
This kind of real-world utility has never been possible before due to the traditional ways of film financing and rigid ownership structures prevalent across the major film studios. Movie NFTs are sure to disrupt the global movie-making industry by granting the audience the ability to not only enjoy their favorite content but also empower the new breed of actors, writers, and directors with access to funds from the same movie aficionado community and bring their movie ideas to life.
Anndy Lian, Chairman, BigONE Exchange says currently, NFTs are only being looked at as a form of art or collectibles, but very soon, interactive movie scenes will be seen where viewers can hunt for NFT gifts on the big screen and live.
“Product placements on screen can also be interactive and accountable through the usage of blockchain technology and crypto. This will bring utility to the next level. This will bring movie funding to new heights too as they are able to monetise basically every minute,” Lian said.
(Edited by : Ajay Vaishnav)