4 Ways That Blockchain Can Benefit the Film Industry
You learned about the basics of the technology, but we put it in the context of the film industry and disruption.
In this post, we’re going to go deeper into the blockchain aspect of things. There are four key benefits that blockchain technology offers to both Mogul and the film industry at large.
The more you understand the basic principles of what a blockchain can do, the more you’ll see the value in the Mogul community. Promise!
Blockchains Have the Potential to Democratize Anything
The Hollywood movie industry is all about the grandiose.
When you consider the scale involved in producing a big-budget movie and the whopping gross revenue numbers that the greatest movie franchises of all time produce, it may surprise you to know that Hollywood is controlled by five major studios and a handful of streaming services. We’ve already talked about that.
Blockchain technology is what Bitcoin is built on. Bitcoin allows people to exchange value without a central authority or government controlling everything.
How does this relate to movies?
You may want a particular movie to be made, but the large studios are generally only interested in pre-existing franchises and new IPs from established filmmakers. Even though there is an audience who wants to see a movie, it won't be greenlit as it is more of a gamble in their eyes compared to what they are already doing.
Thus, your dream of seeing that movie on the big screen is dashed.
With blockchain technology, however, it doesn’t have to be that way. You don’t have to be rich to support the next great movie and earn a share of the revenue. You don’t have to bend over backward to keep the above insiders happy.
You ultimately get to push a movie into production that you think has potential. That’s true whether you’re an actor, producer, financier, or movie fan.
Blockchain technology and the Mogul community combine to democratize the entire film value chain for everyone.
Blockchains Make Transactions Transparent
A blockchain is more than just a network of computers tied together for the sake of validating transactions. It is a public ledger that allows anyone to look at transactions and see what’s happening.
Movies tied to the blockchain have to be transparent. The blockchain doesn’t allow for any kind of opaque or hidden “Hollywood accounting”.
In show business, money flows into many different pockets and it’s challenging to keep track of who’s doing what. Different stakeholders involved with a movie production have different priorities.
Actors want to be paid as much as possible. Investors want to profit as much as possible, and producers want to be able to spend the money required to make the best movie they possibly can.
Registering transactions on the blockchain helps keep everybody honest and keeps financial information transparent.
The best part about using the blockchain for movies though is that it’s not just good for tracking financial records. It’s also good at keeping track of decision-making and voting.
Traditionally, only industry insiders and studios get to vote on which moves are going to make it to the big screen next.
Thanks to the blockchain, the Mogul platform lets YOU vote on what should go into production. Voting is powered by the crowd, not the exclusive powers that be.
Mogul and the blockchain allow for plenty of opportunities for STARS token holders to access liquidity. This means you can back a project, or back out of a project at your own convenience.
Traditional movies are governed by many contracts and stipulations that tie stakeholders into commitments. Financial commitments can increase over time as movies get closer to or often exceed their budgets.
Funding movies on the blockchain means that you don’t have to worry about that. Back a project as much, or as little as you want to, or not at all. The power is in your hands!
Automating Agreements and Payments through Smart Contracts
Now that you know a bit about how Mogul uses the blockchain to help movies that deserve a second chance get funded, it’s time to bring in the concept of smart contracts and explain how they can automate agreements and payments.
A smart contract is a self-executing contract that doesn’t require a lawyer or third party in order to execute. Parties involved in making an agreement together can stipulate payment arrangements and who gets what based on predetermined conditions.
If those conditions are met, the smart contract executes and everybody gets paid what they’re supposed to get paid. If the conditions are not met, the smart contract responds accordingly.
Smart contracts can collect funds from multiple financiers and do it in a faster and cheaper way than traditional contract and negotiations might be able to. They can also distribute funding and resulting revenue from the film to the appropriate stakeholders in the Mogul community.
As has hopefully been made clear, there are a number of advantages to using blockchain technology in the film financing space. With a wealth of film industry experience, our team have seen the problems first hand, and are convinced that Mogul is the solution.
We’re willing to do whatever it takes to show everyone what a democratic movie creation process can look like. We hope you’ll stick along for the ride!