The Film Industry And The Rise Of Web3
The emergence of web3 cinema, known as ‘film3,’ poses a challenge to the status quo of the film industry.
The current valuation of the American film industry stands at an impressive $27.9 billion, predominantly under the dominance of major studios like Warner Bros and Disney, which has left limited opportunities for creatives to obtain substantial profit shares. However, a paradigm shift is on the horizon as web3 developers introduce cutting-edge technologies such as Non-Fungible Tokens (NFTs) with the potential to empower creatives and disrupt the industry's traditional structure.
NFTs, though perceived as unfamiliar concepts to some and derided as overpriced JPEGs by skeptics, hold transformative capabilities in reshaping the cinematic landscape and beyond.
The emergence of web3 cinema, known as 'film3,' poses a challenge to the status quo of the film industry, coexisting with big studio productions while revolutionizing existing norms. The following are key disruptions caused by web3 and NFTs in the film industry:
Decentralized Fundraising: Traditionally, studio heads wield authority in acquiring scripts from writers and deciding whether to pursue a project or consign it to the Hollywood 'blacklist' of unproduced scripts. Decentralized Autonomous Organizations (DAOs) are leading efforts to upend this entrenched system. DAOs comprise collectives of individuals united through blockchain technology, investing in a shared vision. Crucially, DAOs operate without a central governing body, ensuring transparent and autonomous decision-making. Through purchasing tokens associated with a DAO, film enthusiasts gain influence over key decisions and access exclusive insights into the filmmaking process.
An exemplar of this trajectory is Audiverse, aspiring to be a DAO that bestows complete control to artists over their creations. While challenging, the requisite technology is already in place, with the pivotal element being the cultivation of a committed community to realize the dream of empowering artists.
Decentralized Pictures (DCP): DCP stands as a prominent DAO-like initiative within the film3 domain, spearheaded by the esteemed Coppola family. The primary objective is to liberate art from centralized funding channels like studios. DCP's token-based framework permits user participation in decision-making and voting on projects to receive funding. Nonetheless, DCP entails an expert panel review before fund allocation, which, although not entirely decentralized, represents a pivotal step in challenging the conventional funding model.
Film.io: Launched in May 2022, Film.io marks the world's inaugural filmmaking DAO, fully embracing the concept of a decentralized movie studio. The platform employs FAN tokens for governance and FILM tokens to back projects. An AI-driven matchmaking system connects filmmakers with funding, while the 'Go Score,' a blockchain-based algorithm, tracks fan engagement and social media metrics, thereby minimizing risks for financiers.
Film.io and DCP have already left an indelible impact in Hollywood, capturing the attention of audiences and industry titans. For instance, the acclaimed director Steven Soderbergh invested $300,000 in DCP, signifying the burgeoning interest of prominent figures within the film industry.
The film3 space continues to evolve, and its potential to entice more Hollywood bigwigs remains uncertain. Nevertheless, the integration of web3 technologies and NFTs holds the promise of shifting power dynamics and unlocking fresh avenues for creative talents to flourish in the film industry. This transformative movement stands poised to revolutionize the filmmaking process, funding mechanisms, and audience appreciation. As this new frontier unfolds, we can anticipate a multitude of further instances demonstrating how web3 and NFTs disrupt the conventional cinema landscape, empowering creators and reshaping our engagement in the world of film.
Ownership & Preservation of Beloved Films: This newfound space for creativity extends beyond the cinematic content itself, allowing creators to tokenize various film assets, such as scripts, posters, and memorabilia, as NFTs. Not only does this incentivize audience engagement with the film, but it also offers creatives access to diverse revenue streams, ensuring sustainable funding for future projects. Additionally, the audience's ability to claim ownership over items from their favorite films has fostered a thriving community of hobbyists and collectors, engaging in trade and discussion surrounding rare NFTs associated with renowned films and series.
Future Implications of NFT Ownership: Looking ahead, the prospect of owning one's favorite film as an NFT could become a reality. As physical formats like DVDs and VHS gradually fade away in favor of streaming platforms like Netflix and Disney+, the challenge of losing access to beloved content due to its removal from a site on short notice could be overcome through NFT ownership. By owning films and TV episodes as NFTs, individuals would enjoy the certainty of unrestricted access to cherished content at their convenience, independent of an internet connection.
Minting and Archiving Challenges: Presently, feature films are too substantial to be minted as a single NFT, as they exist as multiple files. Consequently, NFTs can primarily serve as identifier tags for films. However, archivists can effectively utilize NFTs to catalog films and media, providing them with unique identifiers for seamless retrieval, even decades later.
Mainstream Adoption and Creative Expression: Although NFTs are yet to achieve full mainstream adoption, their transformative potential in redefining ownership and creative expression within the media consumption landscape is evident. As the concept evolves, creatives are presented with thrilling opportunities to express their work across multiple mediums, embracing the dynamic possibilities of web3 technologies.
The Rise of Immersive Experiences: With the pandemic's impact on audience preferences, a shift away from extended theater visits has fueled the quest for innovative ways to engage viewers at home. In parallel, another revolutionary technology is poised to revolutionize media consumption—the advent of Virtual Reality (VR). Already harnessed extensively in the gaming industry, VR holds potential to spill over into the film domain.
Present VR Experiences: Owners of VR devices can access an array of immersive movies, some combining film and gaming elements with interactive sequences, such as "Vader Immortal: A Star Wars VR Series." These experiences offer unparalleled realism, creating a more profound and memorable impact than conventional TV viewing. Enhanced audience engagement paves the way for a more dependable audience return, even amidst declining movie theater attendance.
The Role of CineVR: An innovative VR experience like CineVR endeavors to resolve the challenges of moviegoing during uncertain times. CineVR's virtual cinema brings friends and families together, allowing