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How Hollywood Is Embracing Blockchain, Cryptocurrency and NFTs
by eguaogie-eghosa Dec 06, 2022 Views (436)
Everything from financing motion pictures to selling merchandise to thwarting piracy is set to change because of blockchain-based technologies.

The film business is frequently cited as an example of innovation and advancement. Even though the industry has only been around for a century, production and distribution methods have drastically evolved throughout time. The Golden Age of Hollywood and the development of sound in the 1920s are worlds apart from the eye-popping CGI effects seen today on 8K screens with 3D Surround Sound.

But in one area, at least in recent decades, not much has changed. It's really challenging to release an independent film unless one of the major studios commissions your huge movie idea. Unsurprisingly, one of the major obstacles is finding the required funding. Additionally, it has been largely undisturbed by the technological innovations that have defined the sector as a whole.

No Time to Die, the 25th James Bond film, finally had its London premiere earlier in October 2021 after being postponed three times since the spring of 2020 and earning $119 million in its global opening. It signaled not just the global revival of the movie theater experience but also a foreshadowing of technology's potential future role in aiding the spread of entertainment around the world.



Studios may better serve filmmakers, retailers, and moviegoers by updating their approach to production and distribution, from goods to acquiring finance through crypto- and blockchain-based production. No Time to Die is the first major Hollywood movie to acquire such support, but additional crypto-based financing for other Hollywood projects generally has the potential to completely change the entertainment sector.

MGM, in particular, is a pioneer in the entertainment sector. The business, which Amazon agreed to buy for $8.45 billion in May, has already been working with tech titans to expand its audience and increase the value of its properties. In order to facilitate MGM's distribution of screeners, prerelease screenings on local devices, and marketing and licensing support, it announced a partnership with Eluvio and its Content Fabric platform at the beginning of 2021.

Media firms are now able to expand monetization efforts beyond conventional limitations with higher degrees of personalization and rights control thanks to Eluvio's latest advancements in blockchain security for content streaming. Along with other contemporary media businesses, MGM has partnered with VeVe to distribute digital collectibles for No Time to Die, exploring the possibility of NFT distribution to support their IPs.

Several processes within the media and entertainment industry for content security, licensing and rights management, digital advertising, and royalty distribution are poised to potentially be transformed by blockchain technology, according to a recent report from Industry Research on the technology's impact on the media industry. With cryptocurrency and blockchain, the film and entertainment sector is ready to rethink its business processes and enable safe, transparent, and traceable transactions throughout the market.

The biggest media firms in the world have recently experienced a number of serious problems, including piracy spikes, the difficulty of effectively monetizing streaming services, and the collapse of the box office due to COVID-19. The analysis from Industry Research claims that by utilizing blockchain technology, media and advertising businesses may get rid of fraud, cut expenses, and boost transparency in crucial and time-consuming business operations. Additionally, blockchain technology supports media and entertainment businesses in their efforts to efficiently safeguard intellectual property (IP) rights.

The biggest threats to the entertainment business continue to be piracy and access. The way media is produced and distributed is about to change thanks to blockchain technology, which enables safe content distribution, and crypto-based investments, which provide widespread backing for independent filmmakers. The media and entertainment sector's global crypto and blockchain market size is therefore anticipated to increase from $466 million in 2020 to $1596.3 million by 2027.

HUGE POTENTIAL, HUGE FINANCE

As managing partner of Parkpine Capital, a venture capital fund for early-stage post-revenue companies, I can already feel the consequences of the rising demand for investments in crypto-based entertainment. We're about to complete our own fundraising for $175 million, which will be used to fund seed and Series A firms, and we'll be establishing a private investment syndicate with a $3 billion investment capacity to support the tech-based entertainment sector.



The acquisition of blockchain- and crypto-backed entertainment firms would hasten the distribution of movies and other items abroad, and studio executives and their tech-fund managers are showing a significant interest in doing so. Due to the significant risk involved in such efforts, money is limited in the independent cinema industry, and investors are typically wary. All artists, but especially the independent film industry, can benefit from the introduction of NFTs and the democratization of development through crowdfunding. Blockchain and cryptocurrency investments are providing more production flexibility, lower labor costs, and streamlined workflows for both major studios and small filmmakers. Cryptocurrency is expanding industry prospects by lowering risk.

Consumers can now start using Bitcoin, Ethereum, Litecoin, and Bitcoin Cash to make payments to AMC, according to a recent announcement. Additionally, some businesses, including DraftKings, Funko, and Liquid Media, are experimenting with pop-culture and sports-focused NFTs as more businesses enter the cryptocurrency space. Relationships between studios, investors, and creators are expected to change as supporting industries adopt cryptocurrency transactions more widely.

Even though China, the largest market for film entertainment in the world, has begun to crack down on cryptocurrencies and the entertainment sector, there will still be a growing need for crypto-based funding. Recently, China outlawed cryptocurrency as part of a wave of broad restrictions on everything from video games to superhero movies to depictions in the media. Even if China continues to flex its financial muscles, the country's limits on content and currency may appear to be a potential barrier to the broad adoption of cryptocurrencies. However, things are not nearly as straightforward as that.

In an effort to lower risk in the system and stabilize growth that has been exponential in recent years, China is imposing much broader regulations on its financial systems as a whole, including anti-crypto measures. There are restrictions on what those restrictions can accomplish (although there is already some wiggle room), and the nation is allowing the blockchain-supported film No Time to Die to premiere on October 29.

With blockchain technology already having a significant impact on the sector, we're about to witness a change in how technology affects and influences Hollywood and entertainment in general. Future Oscar winners might not be Columbia Pictures or Warner Bros. but the California venture finance firm a16z. We have high hopes for this potential and anticipate a tenfold increase in financing for multicultural collaborative entertainment projects over the coming years.'

Despite recent market volatility, which was probably caused in part by China's regulator crackdown, cryptocurrency and the ground-breaking blockchain technology that powers it are here to stay. Change is coming, even though what we are currently witnessing might delay it. Similar to how audio technology ushered in the Golden Age of Hollywood, blockchain and cryptocurrency are poised to excite and motivate both artists and consumers.

With funding for big budget movies now seemingly easier to come by as a result of the rise in the use of cryptocurrencies, blockchains, and NFTs, Hollywood seems to be more accommodating and less suspicious of the role that these methods of film financing have to play in the movie-making industry. Hopefully, cryptocurrencies and their allied payment methods will help filmmakers do more and bring more exciting films to the big screen.

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