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The non-fungible token (NFT) community Arabian Camels is making a $50 million Hollywood movie called “Antara”. The filmmakers recently announced a highly anticipated NFT drop for the project, allowing holders to partially fund the film, own some of the digital rights, and benefit from its box office performance.
This project is just a glimpse of what NFTs could achieve in the world of entertainment.
NFTs started out as standalone works of art and memes by individual creators and today it is a huge industry teeming with innovative NFT projects. An estimated $41 billion worth of NFTs were sold in 2021 alone, a testament to their growing popularity and value.
Major industries such as arts and gaming have already benefited from NFTs, and recent developments suggest that the entertainment domain could be next to take a transformative blow from the NFT industry.
Integrating NFTs into the Film Industry
Valued at over $2.2 trillion, the global entertainment industry is not only one of the most valuable industries in the world, but a huge part of our culture. Over the course of a century, the industry has never been able to wow its audience with enticing movies, TV shows, music, and it has stood the test of time and remains relevant even today.
The entertainment industry has historically been quick to adapt to technological advancements, be it with the advent of televisions of the time or streaming services of the 21st century, and it is using these technological advancements to its advantage to keep viewers hooked. So it’s only natural that when a revolutionary technology like NFTs emerges, the industry embraces it. The opportunities this brings are truly groundbreaking.
Transforming the entertainment industry
NFTs in entertainment have the potential to completely transform the way movies are made, produced and distributed, democratizing this one-sided industry in the process. To better understand this, let’s go back to Arabian Camels’ Antara project. This big budget Hollywood epic is one of the first films produced by the NFT community and demonstrates the concept of movie NFTs.
For movie makers and producers, this means they are no longer limited by budget constraints or the difficult financing methods of top production houses. Movie NFTs provide them with a way to distribute some of the ownership of the movie among the viewers, thereby raising the necessary funds. This is especially useful for budding filmmakers and artists who are barely visible in the industry. Specific roles such as ‘producer’ can be listed and offered as an NFT, making the owner the producer of the film. And through all stages of filmmaking, NFTs can be offered as a way to involve the community in the decision-making process, market the project and build a loyal fan base up front.
However, for the elite production houses and major movie franchises with millions of followers, NFTs offer a unique opportunity to cement their fandom in the metaverse. Multiple production studios such as Disney are already working on NFT marketplaces and in a recent development Lionsgate signed a strategic partnership with NFT platform Autograph to create NFTs for major franchises such as Mad Men, John Wick and The Hunger Games.
“NFTs present a great opportunity for mixed reality world-building experiences, deepening user engagement and interaction and fostering community for our hundreds of millions of global consumers to create unique digital collections and Autograph is the optimal destination for this discovery” said Jenefer Brown, Executive VP and Head of Lionsgate Global.
The NFTs that are released can range from character avatars to video clips from the movies.
Now, in the case of emerging artists, technicians, musicians and directors, NFTs could be their rise to popularity within the industry. The fact that Ben Mauro, a Hollywood concept artist, earned more from his NFT collection in seven minutes than in the 12 years he worked in Hollywood is telling. Like Mauro, these emerging artists can use NFTs in unique ways to represent their talent, attract audiences and increase their visibility in the industry.
Movie merchandising is another area where NFTs can make a huge difference in entertainment. Fans have long collected posters, clothing and character figures from their favorite movies, and NFTs are adding a new dimension to this. The rarity of NFTs gives fans the satisfaction of owning a portion of the film that cannot be replicated. Celebrities can also make the most of this opportunity by creating NFT merchandise collections for their fan base. This particular trend has picked up quite recently and celebrities like Eminem, Justin Beiber, SnoopDogg and Jimmy Fallon have all followed suit.
While these are the current use cases, Anndy Lian, CEO of BigOne Exchange, says NFTs could soon be embedded in movies, making them interactive and giving users something to search for.
Looking at the whole picture, the integration of NFTs into the entertainment industry allows users to actively participate every step of the way. Viewers and creators alike have the opportunity to connect off-screen, taking the industry to unimaginable dimensions.
How NFTs open closed doors
Since its inception, the entertainment industry has been opaque in its operations, eliminating outside interference. This strict way of working severely limited the opportunities for emerging artists trying to make it in the industry. But with the NFT integration, the entertainment industry is now opening its door to a wider range of artists, producers and viewers. While producers and creators have new ways to monetize their work and raise money, viewers now have a way to participate directly in the happenings of the industry, not only to fund films, but also to make money. with their profit. This symbiotic relationship between viewers and creators could change the face of global entertainment in the coming years.
Earl Flormata is the CMO of Mogul Productions.
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This post How NFTs Create New Opportunities in the Entertainment Industry was original published at “https://venturebeat.com/2022/03/08/how-nfts-create-new-opportunities-in-the-entertainment-industry/”