Blockchain and DeFi have a positive impact on the film industry
The media and entertainment industry was severely impacted by the COVID’19 epidemic. Due to movie theatre closures, total U.S. theatre revenue dropped from $11.4 billion in 2019 to $3.5 billion in 2020.
However, thanks to technological advancements like “blockchain technology,” the movie industry can overcome any challenges in this new normal. Blockchain simplifies and improves operations across many industries.
The film industry consists of independent producers, film distributors, global studios, OTT platforms, and international banks, and all of these players can reap the rewarding benefits of blockchain. With the development of digital technology, the Indian media and entertainment industry is expected to reach $25.56 billion by 2021-22.
This blog describes how Blockchain and Decentralized Finance (DeFi) are transforming the film business to make it more transparent and hassle-free.
The main technical challenges for the film industry:
In the case of script theft, the author must go to court and file a lawsuit to reclaim ownership of his or her work. This is a difficult and time-consuming process.
The main difficulties in the global entertainment industry are legality, ownership and copyright.
Lack of transparency in the amounts invested:
In the film industry, investors aren’t aware of how well the allocated money has been spent on the project at various stages of production. This discourages them from investing their hard earned money exclusively in projects.
A big step from the traditional TV to the Internet:
The digital world, driven by smartphones, has forced audiences to move from cable TV networks to the Internet. Nowadays, Internet streaming platforms make huge investments in the production of films, series, etc., which subsequently led to a decline in traditional filmmaking.
A clash between cinema and television:
Before the epidemic, many people enjoyed watching movies on big screens. UHD TVs have 4K resolution, which is higher than the 2K resolution used in movie theatres. Despite the fact that TV has a higher frame rate and greater dynamic range than cinema, consumers prefer to watch movies in premium cinemas.
The advent of online series:
Traditional theatre or cinema has a lot of competition these days as online programmes become more popular. As a result, people like to watch TV shows or movies at home, as they give a cinematic feeling even on a small screen.
Lack of variety in genres:
When people watch a movie or TV series, they look for original material. Only movies that are unique can attract and reach a large global audience.
The following are some of the more serious difficulties facing the film industry:
- There are few government grants for short films.
- Access to many markets is limited due to lack of content.
- Longer hours for little money
- Film personnel are unaware of their legal obligations.
- Higher taxes
- Frustration with film franchises
How are blockchain and DeFi the saviors?
Because Blockchain and DeFi are based on decentralized concepts, they can both help the film industry, which is plagued by a lack of transparency in funding.
Protects content privacy:
The number of movies leaked on the Internet before their release has increased dramatically in recent years. While blockchain is not a standalone solution for privacy, it could prevent content from being shared illegally. Smart contracts can be used to enforce overseas publishing rules, distribution rights, and merchandising license between buyers and distributors.
Simplifies sales and distribution:
Blockchain has the potential to address the complexities of both digital distribution models and global networks. Film releases can now reach all audiences around the world thanks to distribution models. Smart contracts automate revenue distribution by managing the collection process, and they allow audiences to buy tickets with cryptocurrencies.
Blockchain technology has positively changed the way content is shared and viewed. By implementing Blockchain, the film community is freed from risk constraints, big budgets, and intense reviews and rankings. This major transformation is sure to be a happy ending
Enrichment of copyright and property rights:
When it comes to copyrights, establishing copyright and protecting footage is a difficult process. Thanks to Blockchain and DeFi, authors can register their ideas, characters or scripts on the network in an immutable way. No one has the authority or ability to acquire ownership of the scripts that have already been registered.
Equal opportunities for all:
Blockchain creates absolute transparency, giving even small actors the chance to establish their scripts or ideas, produce their films, and earn revenue, unlike the current film industry. Since Blockchain provides global access, investors from anywhere can buy, sell or trade their film or script.
Simple and transparent financing:
Investors can monitor the use of their funds at various stages of film production, as well as the profits for the projects they have invested in, using blockchain and DeFi.
In many ways, DeFi and blockchain technology can uplift the media and entertainment industry.
Defi – creating a new path for the film industry in a golden age:
What is DeFi?
defi is the interface between decentralized financing and the film industry, leading to an efficient entertainment system.
How can film productions be improved with DeFi?
By using the blockchain with DeFi concepts, filmmakers can present their projects to the blockchain community, and members can vote on films that deserve funding. If selected, projects will receive the funding they need from funds managed by the community.
Filmmaking takes place off-chain or offline and requires monitoring by the defi community to ensure that the money is used effectively for filmmaking. When the film is ready, it should be made available on the platform for viewers to vote on.
The final accounting process will be more open and remove ambiguity about the usability of the profits.
The architects of the DeFi community will have full control over the financial resources compared to traditional filmmaking. This increased disclosure of how money is spent could encourage volunteers to invest in film projects and usher in a new golden era for the film industry.
The golden era of decentralized film:
Investing in films has become much easier and transparent with the help of defi, encouraging many investors to participate.
The more investments are available, the more movies with great content ideas and scripts are produced, attracting more fans and viewers around the world. The use of blockchain and DeFi in the film industry can be beneficial for audiences as they have the opportunity to earn rewards.
The digital rights management system allows artists to register their ideas and receive money for their projects. This decentralized film era can take the film industry to the next level with greater transparency.
Key benefits of DeFi and Blockchain in the film industry:
- Less privacy protection for content
- Improvements in the distribution of royalties
- Increased transparency
- For the creation and maintenance of smart contracts
- Democratization of oversight of digital assets
- Supports a global network that digitally connects content producers, distributors and audiences.
The future of the film industry with DeFi:
Currently, there are many decentralized platforms for film production such as Filmio, Mogul Productions, and others that are part of the defi platforms that seek to create a decentralized space for film production.
Blockchain technology, decentralized finance, and smart contracts can greatly and positively transform the film industry through improved transparency and security. Decentralized movies will be the future of the media and entertainment industry, based entirely on the concept of decentralization.
Let us hope for a sustainable and bright future for the movie industry with the introduction of DeFi! Stay tuned to Brugu – Leading DeFi Development Company for the latest innovations and movements in the crypto industry as a whole.