The State of Web3 Film
Royalties aren’t the only reason directors and producers turn to NFTs — they also offer a new way for filmmakers to connect with audiences.
In 2020, artist J.N. Silva was talking about the power of NFTs and royalty in the clubhouse room when a prominent psychedelic artist from the late 60s in the audience asked to speak. According to Silva, he shared, “I just walked into this room. I had no idea what was going on. But this loneliness would have changed my life if it had been around when I was creating art.
This artist sold the pieces during his “period of prime” in the 60s and 70s. Today however, his works are reselling for millions, but due to the nature of physical artifacts, he hasn’t seen a dime. “Imagine if I was getting royalties from all these works,” the artist told Silva, “I would have the mental freedom to exercise my creativity and not have to fight against a past version of myself”.
This emphasis on the importance of royalties, and the way they can offer continued opportunities to artists, was a prominent thread during The Gateway panel “The State of Film NFTs” with Silva, filmmaker Nelson G Navarrete and filmmaker Julie Pacino On December 1, 2022.
LEFT TO RIGHT: ISABELLA MONTOYA, NELSON G. NAVARETTE, J.N. SILVA, JULIE PACINO. CREDIT: NFT NOW
Royalty Should “Never go Away”
In the old days, indie filmmakers turned to traditional crowdfunding platforms like Kickstarter to secure project funds. From critically acclaimed action comedies such as Kung Fury to award-winning horror movies like The Babadook, crowdfunding has helped many cult classics flourish. But some filmmakers are already abandoning these platforms in favor of Web3 fundraising opportunities.
Pacino is one of the first people to finance a film with NFTs. The director worked to fund her film I Live Here Now through an NFT project called “Keepers of the Inn,” which consisted of 3,356 photos taken during the rehearsal process.
Pacino turned to NFTs mainly because of royalties. During the panel, he stressed the importance of royalties, saying they should “never go away” — and that they don’t just benefit the artist. ,[Royalties] are exciting from a collector’s point of view because if [I]artist, [am] selling you some work and then I shake my ass and raise my price, then you’re [also] It is going to benefit,” she said.
But royalties aren’t the only reason Directors and producers turn to NFTs as they provide a new way for filmmakers to connect with audiences. “It’s really valuable to connect with the people interested in your work before you’ve even shot your movie. It’s a miraculous thing. They can inform the creative process and help drive your vision forward,” explained Pacino.
Web3 has a Movie Under Construction
While the panel may have passed, fans of Film3 still have the opportunity on December 2 to watch Navarrete and Silva share some of their work. Co-Directors Navarrete and Alex Ulises are hosting a screening of their documentary Idiosincracia Latina along with “NEA,” the teaser for Buscando América — “a fiction film under construction in Web3” which Silva executive produced.
The film explores the history of the 16 communes in the Colombian city of Medellín, aiming to represent the true realities of the area not often reflected beyond the country’s borders. And community is at the heart of the whole project.
“The social impact that we want to have, not only with Web3, but accompanied by Web3, is to provide some tools in the communes that we visit, where we find these actors who are going to participate in our film, where we can teach production workshops, workshops of performance and workshops of Web3 where we teach how to use certain tools for this technology that is new, ”said Navarrete to Voz de América.
Beyond locals, the filmmakers are also expected to pave the way for other creatives in the Web3 space. “Our main motivation is to build the infrastructure that helps budding filmmakers tell their stories […] without going through structures that are traditionally difficult,” Navarrete said.
And that’s where the magic of space lies, and what could (hopefully) lead to a new creator economy where these artists have exactly what the psychedelic artist of the ’60s strived for – the freedom to practice creativity without barriers.
Impact of Web3 on the Film Industry
Anyone can easily notice that diverse use cases of web3 entertainment are slowly emerging. It has also significantly influenced film industry helping the industry explore newer business models to offer audiences a better overall viewing experience. Here are some potential uses of web3 in the film industry.
Earlier, producers and directors faced problems with the royalties they were entitled to. Web3 has deployed smart contracts that trigger automatic payments based on the usage of the creator’s content. Therefore, it enables creators to be rewarded for their efforts more fairly and efficiently.
Reduces Piracy Issues
As fraudulent copies of films and duplication of other digital items cause filmmakers huge losses filmmakers and artists around the globe are looking for a permanent solution to this problem. Incorporating web3 into the film industry will result in fewer incidences of copyright infringements of movie-related content.
Resolves Advertising and Marketing Issues
Advertising fraud is one of the gravest challenges facing the entertainment industry. Web3 can be used as a universal source of truth in the entertainment industry, and it guarantees advertising metrics are free from manipulation and fraud.
Platforms like Netflix and Amazon prime video are based on subscription-based streaming services. Although this practice seems to have no issues, it has got certain limitations. As a viewer, you might want to unsubscribe but it can waste your time as well as money. For OTT platforms, canceled subscriptions mean a huge loss and reduced user engagement.
With web3, micropayments and consumption-based pricing mechanisms that allow consumers to pay only for the content they want to consume are beginning to gain popularity.
Web3 allows creators and viewers to interact directly eliminating costly intermediaries. This is done due to smart contracts that validate data and generate transparent mechanisms for content viewership and royalty payments.
To summarize, Web3 enables the film industry to facilitate disintermediation, digital rights management and a transparent ecosystem. The future of the industry relies on web3, which will undoubtedly empower a new competitive era in cinema.
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