Producing a film needs a huge amount of resources and money. Independent filmmakers often struggle with the money part of film production or the income from the film itself. That is why the idea of the NFT film industry can be a big thing for the future.
NFT film means the effort from the film industry to connect their films with NFTs. Depending on the film industry, the NFTs can be additional content, exclusive merchandise, and others. Even the film itself can be sold as a collectible NFT as well.
NFT Development for Film Industry
NFTs can be another way for filmmakers to gain some profit. The film is a piece of art that can be an NFT by itself, not to mention some contents inside it that can be worthy as NFTs and be collected by fans. With the booming trend of NFT and the increased numbers of collectors willing to invest their wealth in digital arts, those collectors or investors can also be a part of a certain film’s success.
NFTs can be the alternative platform for film industries to distribute their works to people other than common big screens at movie theaters, various kinds of streaming platforms, or physical hardware like DVDs and similar things.
A big movie industry like Hollywood has been involved in film NFT, as the Zero Contact movie by Enderby Entertainment became the first Hollywood film to be released as an NFT. Not only that, but there is also some merchandise of that film available on a blockchain. The film was worth almost $100,000.
3 Ways the Film Industry Adapts to NFT
There are several ways that the film industry can get involved and gain some profit from the world of NFT. The film itself can be released as an NFT to be purchased by investors or collectors on a blockchain. NFTs can also be used to fund the film's production or be sold as merchandise.
1. A Film as an NFT
At first, it was not possible for a long video, let alone an entire film, to be released as an NFT due to the storage limitations of blockchain technology. However, the technology has evolved recently, allowing the film industry to release its film as an NFT.
The problem is that the proceeds that some film industries, which have sold their movies as NFTs, get are not that huge. The prices are not minute, and they also get royalties for later transactions of the NFTs, but they are almost nothing compared to the values of the most expensive NFTs or the incomes of top-grossing movies.
2. NFT to Fund Production
Many film industries, especially independent filmmakers, use NFTs at the time of production of the film to go side by side with traditional fundraising methods. They can mint any kinds of NFTs, whether the NFTs have a connection to the film like premieres or just random efforts from the filmmakers such as photography.
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3. NFT as Merchandise
Similar to the previous way, film industries can sell some merchandise of their films as NFTs after the release of the films. The merchandise is close to bonus content that fans can get if they buy the DVDs. It can be any film-related things like uncut scenes, behind-the-scenes, or original soundtracks.
Why NFT Will Take an Important Part in Film Industry
The point of the NFT film industry is monetization. Looking at some well-known NFTs, a simple collectible digital art can be worth millions. There are some short videos among those priceless NFTs, so there are some places for films to be worth millions of dollars. It is probably evident that independent filmmakers often struggle to get some financial support to cover the production costs. NFTs will open the opportunity for investors to claim a worthy filmmakers’ creative work as their collection with a worthy value.
The great thing about NFTs is that the artists will not only get paid once. A royalty system also allows the original owners of certain NFTs to get some percentages from every price whenever new transactions happen. So, the more the NFTs change hands, the more profit the artists get. For example, a film NFT is worth $10,000 at first, but another investor buys that NFT for $20,000. The original owner, as the filmmaker, would get some cut from that $20,000 price tag. It would work similarly as well for the next transactions in the future. If the film NFT is more than one, the original owner will gain more profit faster.
Furthermore, NFTs can also make filmmakers more profit as their names get bigger. If filmmakers become more popular with their works, there would be more wealthy investors or collectors who are interested in buying the film NFTs.
Future of NFT in the Film Industry
NFTs will not go anywhere in this modern digital era. The number of collectors, investors, and artists involved in the world of NFT can only be increased in the future. Likewise, many new creative people will also be responsible for the number of new films produced and released in the future.
Nowadays, making films is as easy as it can be with modern technology and the rich knowledge of the people behind it. However, making money from films becomes more and more difficult as people prefer to watch free content which can be accessed easily with various platforms.
For that reason, NFTs can be the revenue stream filmmakers use for their films in the future. The filmmakers would get more profit while fans would have a collection of their favorite films while helping filmmakers financially.
However, common revenue streams would not go anywhere as well since there are still many people who are not supporting NFTs. A large number of people also still prefer to watch their favorite films at movie theaters for the best experience. In contrast, others enjoy the convenience of watching films at home through monthly subscriptions.
In conclusion, many creative minds to make new films possible will keep sharing their creativity as long as the appreciation is there. With the help of the NFT film industry, the future of film is in a safe hand as filmmakers get the things they deserve. Moreover, fans also can have their favorite films as a personal collection.