Will blockchain technology create a paradigm shift in the business practices of the film industry?

The film industry on many occasions been fundamentally changed by technology over the years.………. from film; to video; to broadcast; to cable; VHS; DVD; broadband, streaming etc. Will blockchain and the distributed ledger technology be that next force for significant change?

Is blockchain is a total paradigm shift?

Blockchain technology can provide innovative opportunities to address issues related to transparency, efficiency of transactions, security, cost saving, distribution complexity, creative rights management, and digital piracy.

What is Blockchain & How does it work? How may it apply to the various sectors of the film industry?

Blockchain is still an emerging technology that could allow much-needed transparency and security to transactions and contracts never available before. This technology however will cause some apprehension and concern from various sectors of the film industry but joy to many other sectors of the film industry. Blockchain technology unveils opportunities never before available to the film industry for major studios, independent producers, distributors, exhibitors and Internet based streaming platforms.

Blockchain technology can change the film industry landscape and provide complete transparency and security for every transaction and contract; raising capital and funding; copyright security; and methods of delivery of content/streaming to the consumer.

Blockchain is a decentralized digital ledger that encompasses a way to verify and record transactions over a secure and encrypted platform. This technology was originally created for Bitcoin in 2009 and utilizing this technology for the film business provides has many attributes that may fundamentally change the way business is conducted.

Imagine a computerize accounting/document ledger. Blockchain is a list of transactions distributed across a range of worldwide computers. This technology allows secure transactions without a third-party verifier with seamless transactions and a level of security and transparency never before seen.

With the availability of this new technology, it is time for the film industry to move forward and change the inefficient, cumbersome, expensive and non-transparent business model of the film industry that has been in place for decades and move into a more open, transparent and sustainable standard that has the flexibility to change with the times.

Blockchain technology opens the door to a potentially new and exciting landscape that simplifies and accelerates the film business process and helps eliminate old traditional gatekeeping and the dark mysteries of Hollywood accounting and revenue sharing practices.

The more the industry examines and understands the abilities this technology presents the more benefits it may provide.

Film Business Open & Democratized

Blockchain technology is what Bitcoin is built on. Bitcoin allows people to exchange value without a central authority or government controlling the business.

By utilizing the technology and its security and transparency anyone can invest and participate in projects, productions or services and combine to democratize the entire film value chain for everyone.

Use of Smart Contracts

This technology allows the creation of smart contracts which means any contract can be entered into the blockchain and once all of its contents, stipulations, terms and conditions are entered they become fully automated.

A smart contract is a self-executing contract that automatically executes all terms and conditions therefore eliminating a lawyer or third party in order to execute. Parties involved in making an agreement can stipulate payment arrangements and who gets what based on predetermined conditions.

If those conditions are met, the smart contract executes and everybody gets the financial amounts as agreed, and If the conditions are not met, the smart contract responds accordingly. The smart contract provides transparency, efficiency and security of any agreements entered into the blockchain.

Blockchain Enables Transparency in Transactions

Blockchain technology is more than just a network of worldwide computers tied together to validate transactions, it is an open and transparent public ledger that allows anyone to look at transactions and see each and every entry to do with the project or business each and every day.

Projects in a blockchain have to be transparent. In the film business, financial transactions flow in many different ways and it’s challenging to keep track of where and what is really going on and everyone involved (investors, producers, actors, distributors etc.) have different priorities and expectations but what is evident is that there are always a large number of middlemen who are involved in the flow of monies. Blockchain can reduce such reliance on theses middlemen and allow a clear and direct access to information and detail by the final consumer or participate in the business.

Registering transactions on the blockchain can ensure accuracy, security and keeps financial information transparent.

Project Funding

Opening the funding of projects to anyone is a possible advantage this technology offers in the same way as it has in Bitcoin.

The general public can invest in any projects and in any amount, and they will know the exact status of the project through the transparency of the blockchain. This could allow access to a huge pool of investors that to-date could not access film projects, whether it be mega budget films or small low budget content.

Piracy

Blockchain technology allows the ability to record proof of ownership of film/content by validating and time-stamping transactions. This will increase protection against piracy and theft. Once the film is authenticated and the ownership title is recorded in the blockchain, that film title becomes secure and transparent.

In my next series of blogs my intention is to present the following topics for open discussion, that blockchain technology may significantly influence:

1. TRANSPARENCY/SECURITY/DECENTRALISATION
2. SMART CONTRACTS/ROYALTIES
3. CONTENT DISTRIBUTION / NEW PLATFORMS
4. NEW VENTURES / NEW CREATORS /EQUAL OPPORTUNITIES
5. FUNDING OF FILMS
6. CONSUMER TO CONSUMER SALES
7. OWNERSHIP /COPYRIGHT
8. PIRACY

I look forward to your participation and discussion.