Blockchain’s Next Innovation: Borderless Funding For Indie Filmmakers

How Blockchain Funding is Transforming Indie Filmmaking

The movie industry is one that’s known for its trail-blazing innovations. Although it has only been around for just over a century, the technologies and distribution models for movies have evolved dramatically over the decades. These developments have paved the way for more exciting, immersive and realistic experiences, opening the doors for more directors and actors to showcase their talents on the big screen. 

Now, with the rise of blockchain technology, the very nature of filmmaking is on the cusp of a major evolution that could entice many new talents into the industry from far-flung countries, and perhaps even end the dominance of movie-making hubs like Hollywood and Bollywood. 

The Evolution Of Filmmaking

While the earliest movies were shot on black and white film, with no audio at all, these days the most famous filmmakers can access cutting edge video cameras and computer-generated graphics, and combine them with atmospheric audio effects to make incredibly immersive content. The combined effects of CGI, 4K resolution, HDR and surround sound mean that viewers often feel as if they’re a part of the on-screen action. 

Movie distribution has also changed. In the early days, the only way to catch a movie was to go to the pictures, where the latest Hollywood flicks would be shown on flickery screens to paying audiences, complete with regular intervals for cinemagoers to relieve themselves in the bathroom. Later, it became possible to watch movies at home with the emergence of VHS videos and, later still, DVDs. More recently, the film industry has embraced video streaming services, with the rise of the internet meaning that new movies can be streamed directly into people’s homes, with no need for any media sales. 

However, while the movie production and distribution techniques have evolved over the years, there is one aspect of moviemaking that has remained unchanged. That would be the funding process, which is a necessary step for any budding filmmaker looking to make a realistic production. 

For most filmmakers, the only real options they have is to approach a major film studio and convince them to commission the production of their movie, but of course this is an incredibly difficult task for smaller, indie film producers that lack any real clout or status. The only alternative, then, is to fund the production of their movies themselves. 

Blockchain Funding To Democratize Indie Film 

This is why there is so much excitement over the potential of blockchain to provide new funding opportunities for filmmakers. Blockchain is the foundation of a new kind of technology known as “tokenization”, which involves the creation of digital tokens, similar to cryptocurrencies, that can represent a kind of “share” of ownership in a movie. Filmmakers who are looking to fund their newest project can create, let’s say 100,000 digital tokens on a blockchain-based platform, and then sell these to investors as a way to obtain funding for their projects. 

The way it works is, the filmmaker will create the tokens on a dedicated platform, pitch his or her idea for a movie to investors on that platform, and then sell the tokens. Those tokens would each represent a 100,000th of a share of that revenue generated by that movie, giving investors a way to recoup what they put into the project. 

It’s a novel, yet brilliant approach to funding that democratizes the entire industry, allowing anyone to become an investor in indie movie productions. At the same time, it provides indie filmmakers with a much more viable, and reliable way to obtain the funds they need to bring their vision to the big screen. 

Besides revenue, filmmakers can offer additional incentives to early investors, enabling token holders to access exclusive artwork and posters, for example, or behind-the-scenes footage and deleted scenes that don’t make it to the final cut. 

More Than Just An Idea

The opportunity provided by blockchain to indie filmmakers was spelled out by the CEO of Gluwa, a Nigerian tokenization platform, during a recent UN-sponsored event hosted by Nigeria’s Ministry of Culture. 

Tae Oh explained to attendees at the event that blockchain platforms such as Creditcoin provide Nigerian filmmakers and other creators with an attractive alternative to funding that could one day help them to achieve much more prominence on the global stage, by reaching out to foreign investors. 

"As a blockchain entrepreneur, I envision working closely with Nigerians to create a truly borderless financial system that amplifies their creative voices on a global stage."

The Creditcoin platform has already proven popular in Nigeria, helping farmers to achieve small loans from the global crypto community to grow their agricultural businesses, for example, but it can equally be used by creators and filmmakers to pitch their projects to a wider audience. 

There are also more dedicated blockchain platforms aimed specifically at filmmakers, such as Mogul, which is a decentralized autonomous organization that enables anyone to pitch an idea for a movie. Each movie that’s suggested will be voted on by MOGUL token holders, and if it receives enough votes, it will then be given the requested amount of MOGUL tokens to finance production. Once the finished film is created, the DAO will then act on behalf of the filmmaker in negotiations with distributors to get the movie seen by the widest possible audience. 

Mogul has already produced or co-produced dozens of films, with one of its most recent being the Indian film City of Dreams, which tells the story of a young boy who is tricked into coming to the U.S. to pursue his dream of becoming a soccer star, only to find himself trafficked and forced to work in a Los Angeles sweatshop.

Breaking Down Barriers

One of the lesser-known advantages of blockchain-based funding is that the investor communities can also have a significant influence on the storylines. Filmmakers can offer enticements, such as the chance for token holders to vote on their preferred ending, or suggest which actors should be cast in certain roles. Moreover, the community that funds the movie will become its biggest proponent, helping to recommend it to others and hopefully aid in its success. It’s a method that has the advantage of building true connections between filmmakers and their audiences. 

These same advantages were highlighted by Gluwa’s CEO Oh, who discussed at the UN event blockchain’s potential to democratize access to Nigerian films and other creative initiatives. 

"The power of blockchain lies in its ability to break down barriers and empower creatives, no matter where they are,” Oh said. “By bringing the Nigerian creative industry to the international market, we can help secure investments, promote cultural exchange, and provide new revenue streams for creators.”