The Future of NFTs in the Film Industry

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You may have heard of NFTs and considered investing in them. But how to do it ? And what are the pros and cons? Before you start investing in any asset class, it’s a good idea to familiarize yourself with it.

In this article, we will analyze the potential of NFTs, their role in the film industry, and the benefits of investing in NFTs.

NFTs and the Film Industry: Making a Movie as an NFT

Due to the storage limitations of blockchain technology, it was previously impossible to release full movies as NFTs or anything other than small video snippets.

Last October, Zero Contact became the first Hollywood feature film to be released in a non-traditional film format. Vuele.io, the studio’s own blockchain network for the film industry, was used to distribute the film and related items.

CurrencyWorks, the system provider, reported that a total of $85,000 worth of NFT copies of the film had been sold. Each time one of these NFTs is bought or sold, CurrencyWorks claims to collect a fee. While a major return isn’t terrible, it’s nothing compared to some of the art world’s most expensive NFTs or the box office returns of the most popular films.

But there was a hitch with the sale of Kevin Smith’s last photo, Kilroy Was Here: it wasn’t sold as an NFT. Previously, Smith said the lucky bidder would also have the right to view, sell, and live stream the image (we couldn’t find any news on the exact price of the transaction, though).

NFT finances a film project

Selling NFTs to raise money for film production is becoming increasingly popular among experienced executives who want to disrupt conventional funding approaches and independent filmmakers who just need the cash. The Forest Road Company launched a $20 million NFT fund to help independent filmmakers monetize their material. Similar developments are taking place in other sectors of the film industry.

To make “the first feature film designed to be funded entirely by NFT token minting”, Niels Juul, Executive Director of The Irishman, launched NFT Studios. Many NFTs include investor-type incentives, such as access to the first and second tiers of the platform.

by Al Pacino as a child, Julie Pacino, has generated approximately $100,000 selling free prints of her photographs to help fund her upcoming feature, I Live Here Now, which is currently in pre-production. Filmmakers can now acquire funds for their projects through the purchase of specific crypto assets on new industry-facing NFT sites, such as First Flights.

According to Juul, cinema has become more “democratized” due to the ability to raise funds for studio releases through NFTs. An interested audience who are also our shareholders in the film is what NFT-based financing allows directors to discover, he says.

NFT Product Sales

Merchandise sales are most definitely the most common form of funding new movie premieres via NFT, however, this is not always the case. If you’re a Quentin Tarantino fan, you’ll want to get your hands on some of the original writing scripts and a commentary track from the Pulp Fiction filmmaker himself that sold out last year. Tarantino’s first NFT sold for $1.1 million, but the ensuing lawsuit from film company Miramax (alleging intellectual property infringement and seeking to end the sale) could be a precursor to complex legal issues between creative types and corporations around NFTs.

In preparation for the launch of The Matrix: Resurrections last year, Warner Bros. unveiled a set of NFTs influenced by the film, bringing The Matrix to the network. Dune and other famous movies followed the same steps. A collection of digital collectibles was launched by the producers of Ranveer Singh’s 83 towards the end of last year.

“Unlockable” NFT content, comparable to DVD supplemental material, may also fuel the next stage of NFT commercialization by making NFTs “active assets with mysterious rewards,” according to some observers.

Advantages of investing in NFTs

NFTs are open to the public and anyone can invest

Tokenized assets can be invested by anyone. NFTs make it easier and faster to transfer ownership of assets between people around the world.

It’s easy to find good NFT projects

Some NFT projects have already established themselves as the most interesting in the industry. Some best NFTs available are CryptoPunks, Azuki, Bored Apes, Invisible Friends, etc. Celebrities often invest in such NFT projects, which makes them even more popular. If you choose such established projects, chances are that your investment will only increase in value.

A blockchain ensures the ownership of NFTs

Ownership of an asset by an investor is more secure if they use blockchain technology to digitally signal ownership. The use of blockchain technology can also clarify ownership of assets. NFTs are a chance to gain a deeper understanding of blockchain technology and small investments in tokenized assets can help investors learn more about blockchain and diversify their portfolios.

NFTs have a bright future

The future of non-fungible tokens looks bright. NFTs are unique digital assets that can be used in many ways, including as currency, game items, or digital collectibles. What is particularly interesting with NFTs is that they can be stored on blockchain platforms such as Ethereum and Bitcoin, which provides users with a high degree of security and permanence. With so many potential applications and the high level of security, NFTs could become the way people interact with the digital world.

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