After tokenizing an array of sectors including finance, real estate and luxury goods, blockchain technology is slowly turning to the entertainment industry.
tZero, a blockchain technology firm, owned by Overstock.com, recently announced that it would be helping in tokenizing the production of an upcoming movie.
The movie in question is a biopic on the life of Nolan Bushnell, celebrated co-founder of Atari and founder of Chuck E. Cheese.
The project, titled “Atari: Fistful of Quarters”, will be co-produced by Leonardo DiCaprio’s production company, Appian Way, as well as Vision Tree and Avery Productions.
What Does Tokenizing a Film Production Really Mean?
Tokenizing a film, you ask? How does it work?
Issue blockchain tokens to interested investors.
Funds raised through this initial security offering (ISO) would go to producing the movie.
As a result, the production companies would get the financing they need from individual participants who are interested in delving into film production.
But wait, there’s more.
Those who purchase the tokens would have the ability to vote on the movie’s casting and its trailer. This may not be the best idea but its all an experiment, right?
Investors could expect to receive a portion of revenues that the movie generates after its release.
The token being issued against the movie would be named “Bushnell.” The producers plan to raise as much as $40 million from the ISO, which will not be open to the public and will be held in a private sale early next year.
Lastly, tokenizing film production may take place in different forms, this is just the way they decided to go.
Why tZero Tokenization and Movie Producers?
Tokenization opens doors to a whole new way to finance and produce movies, which are currently only being made through conventional mechanisms.
While CGI and animation have taken movie production to a different level, the idea of gathering financing is still based around traditional infrastructure.
Appian Way, Vision Tree and Avery Productions all have the means to produce a movie, even if it involves inviting outside investors and production companies. As such, their decision to raise funding through an ICO is not out of compulsion but rather a conscious decision.
“We have elected cryptocurrency funding to accelerate the filmmaking path in a whole new way, offering Atari fans the opportunity to share in the creation of this movie with us,” producer J.D. Seraphine shared with Variety.
According to Seraphine, the approach towards the movie defines the spirit of Atari, which went out of its way to redefine electronic entertainment.
Bushnell’s Legacy is One In Line With Innovation
Nolan Bushnell doesn’t need an introduction. Both his video game production company and his fast food chain are deep-rooted in American culture, defining it for people in the U.S. and all over the world.
At 74, Bushnell is considered as one of the most well-known figures in the world of technology and business. As a renowned businessman, he has built a legacy that is nothing less than awe-inducing. And the credit largely goes to his approach towards innovation.
While Atari has now been pushed behind by other players such as Sony, Nintendo, and Microsoft, its history is nothing short of legendary. Even today, the very mention of Atari sparks a sense of nostalgia in those who grew up with the company’s innovative offerings.
Atari’s rule on the entertainment sector has been over for a while now, but seeing how the company came into being with Bushnell’s efforts would of interest to those who grew up with the company’s games. That interest is precisely what Seraphine and other producers are banking on.
The movie should be released in the latter half of 2020, according to a recent interview, the project is still negotiating different aspects of the project.
J.D Seraphine aims to utilize blockchain technology and the power of crowdsourcing to draw more interest and create a hit.
But This is Not the First Use of Blockchain in Hollywood
As mentioned by Overstock.com’s CEO Patrick Byrne, this is the very first time that a mainstream film is seeking investment using blockchain technology. But this is not the only instance where blockchain technology has shown its interest in Hollywood.
In January 2019, a blockchain development firm NASGO announced its FilmCoin at the Sundance Film Festival. According to the company, the token was designed to help streamline the release and distribution of motion pictures. While the information was distributed to the who’s who of the film industry, the initiative is yet to be adopted by major players in the sector.
But blockchain technology isn’t dead in Hollywood.
Another platform by the name of Vevue has now become the first ever blockchain initiative to release a feature film under a blockchain classification.
The movie “No Postage Necessary” is available on the Qtum-based platform’s iOS App.
Decentralized Pictures is another potential initiative that may be some traction as well.
These initiatives go on to show that blockchain technology is paying attention towards the film industry just as much as other sectors.
As of 2017, the U.S. film industry alone makes over $43 billion in annual revenue. This leaves a large market for blockchain technology to explore. It seems that we’re still in the early stages of the blockchain revolution and will see further use in the future.