As always, I’ll keep 100% transparent with you:

AAAAAND ACTION!

Software engineering, developers, spatial computing, blockchain, economy, finance, loyalty programs…

All these topics/fields are often mentioned when the discussion is about jobs and industries directly affected by Web3.

However, we can’t ignore the creative industries, including music, design, and film production. Terms like “tokenization” and “Blockchain” can help create a whole new environment for these areas.

Today we’ll discuss some of these possibilities, with a special focus on how Web3 can help revolutionize the film industry - and to do so, we’ll be joined later on in this edition by our special guest.

LFG!

Power to creators
Creative Industries in the Web3 Era

A quick view of our timeline:

Let’s start by making sure we’re all on the same page.

There are numerous definitions for “what Web3 stands for”, and I usually sum it up as “the next evolution of the internet”. Another way to define it is this (inspired by an article from Harvard Business):

Web1 → Read only → Helped democratize access to information, serving as a digital printing press. Users could basically read and consume whatever was displayed.

Web2 (the one we are used to) → Read+Write → Facilitated the content creation. Any person with access to it can publish, share, and interact with texts, images, and all sorts of media formats.
However, the lack of transparency confined creators to centralized platforms (not to mention the way big tech treats users’ data).

Web3 → Read+Write+Own → Tools like Blockchain offer ways to actually own digital assets, and monetize them without being controlled by powerful platforms.
Web3 facilitates processes for crowdsourcing, royalties collection, and general control of user-created content, which completely changes the game for creators looking at pushing their art forward - and making money while doing so.

A new era for creators

The creative industries stand at the dawn of a transformative era, fueled by the rising roles of Web3 and AI technologies.

This (possible?) revolution goes beyond tech, though. It's a paradigm shift in the very essence of creativity, distribution, and monetization. With Web3, the decentralization ethos is empowering artists by eliminating the traditional gatekeepers and intermediaries, fostering a direct engagement with audiences.

Meanwhile, AI is revolutionizing the creative process itself, offering tools that not only augment creativity but also streamline production, making the once-impossible, possible.

Thanks to this new environment, artists are reclaiming sovereignty over their creations. Tokenized assets and NFTs enable creators to monetize their work in ways that were unimaginable in the pre-Web3 era. Moreover, the rise of decentralized platforms and Metaverses is expanding the horizon of creative content, taking down geographical and cultural barriers that once confined artistic expression.

(Quick note: we talked a lot about tokenization in different editions - specially in #21)

Let’s now have a quick look at different creative industries and how Web3 interacts with them to empower artists:

NFTs Remixing the Music Scene 🎵

Blockchain technology and NFTs offer artists an unprecedented level of autonomy over their work.

The introduction of music NFTs has been a game-changer, especially for independent artists who previously faced daunting barriers to entry and limited financial rewards.

Besides bypassing traditional distribution channels, this is an opportunity for artists to forge a direct and meaningful connection with their audience - all while having full control over the monetization of their craft.

Platforms like Audius (which was mentioned in edition #2) are amplifying this change by ensuring artists keep a big share of their earnings, in contrast to the conventional streaming model's meager payouts.

By retaining complete ownership through NFTs, artists can secure up to 90% of their revenue on platforms that champion their rights and creative freedom.

Fashion in the Metaverse Era 👗👕 

The fusion of fashion with the Metaverse is something that I have talked about A LOT 😄.

The concept of digital fashion, once confined to the gaming world as "skins" has transcended its initial playfulness to become a significant cultural and economic phenomenon.

Independent digital fashion designers, for instance, once overshadowed by the huge brands of the physical world, are finding their spotlight in the Metaverse.

From metaverse-native collections to partnerships with traditional brands, these artists have found many different ways to share their work, while directly monetizing their creations.

And these are only a couple of examples: there’s also NFT art that lets you redeem its physical twin to hang in your living room, designers that specialize in creating solutions for virtual spaces decoration, and many other creative roles that are yet to appear.

The thing is: creativity-related industries and jobs are going to go through some radical changes. And I’m here to help you understand and leverage them.

As promised, now that we have a general overview of how Web3 and creative industries can interact, it’s time to dive into a specific sector.

The Current State of the Film Industry

Annual revenue (in billion U.S. dollars) → 76.7

Number of employees (in thousands) → 388.77

(Numbers by Statista, 2023)

I guess it’s not a surprise for anyone reading this, but yes, the film industry is still MASSIVE.

Despite everything that’s happened in recent years, these numbers are still impressive.

However, I want you to come with me beyond the numbers. Let’s try and have a better understanding of how this industry usually operates.

We are talking about a super complex ecosystem with its own set of challenges and opportunities. Currently, the industry is dominated by major studios and production companies, which control a significant portion of the market share. This centralized model has led to a concentration of power, often at the expense of independent filmmakers and diverse voices.

The vast majority of independent films struggle to secure financing and distribution, with many creative projects never reaching their intended audiences.

The traditional film financing and distribution model favors established franchise films with studio distribution, leaving indie films and filmmakers to navigate a highly competitive and often opaque (and unfair) market.

Talking about “established franchises”, check this out:

(Now imagine you are a small filmmaker and want to enter this industry…)

On top of that, there’s a lack of transparency in accounting operations and the distribution of profits. Filmmakers are frequently required to sign away the rights to their movies, limiting their control and potential earnings.

These issues highlight the need for a new model that can provide more equitable opportunities for all stakeholders involved - and we will explore a solution later in this edition.

Challenges in Traditional Film Production

The high barriers to entry and the reliance on intermediaries such as agents and producers make it difficult for new talent to break into the industry.

Moreover, the traditional model often requires filmmakers to relinquish a significant portion of their creative and financial control. The distribution process is tricky, with filmmakers and investors frequently left in the dark regarding the true performance and revenue of their films.

And there’s also the close-to-zero audience’s participation. Besides movie review websites or Twitter/X rantings, there’s not much a film fan can do to really interfere/participate in the industry.

(Yes, there are very few exceptions like Sonic ⬇️ being remodeled after the fanbase’s backlash, but that’s a rare event).

The are other challenges in the traditional film industry - and we’ll explore those later on. But more than that, we’ll dive into some possible solutions.

The Co-Stars: Web3 & The Film Industry

The integration of Web3 into the film industry opens opportunities for radical shifts, offering solutions to the long-standing challenges faced by filmmakers and viewers alike (some of which we covered earlier in this edition).

We are talking about revolutionizing the very concept of film production, distribution, and engagement. Web3's decentralized nature helps creators avoid the traditional gatekeepers, democratizing the industry for producers and consumers.

One of the most significant impacts of Web3 on the film industry lies in financing → Traditional funding avenues often place undue constraints on creativity and limit access to capital. However, the emergence of Web3 introduces a new paradigm.

Filmmakers can now leverage tokens and NFTs for crowdfunding, offering investors a stake in the project's profits. This not only opens up new funding channels but also fosters a deeper connection between filmmakers and their audiences.

“Ok, Diego. This sounds super cool, but I still can’t see how Web3 can really affect a movie production”

Fair enough. Let’s talk about an actual example: "The Quiet Maid".

Instead of using the traditional (and often inaccessible) funding methods, the Spanish filmmaker Miguel Faus sold NFT passes and managed to raise $750,000.

These passes offered holders an inside look at the film’s production and the power to interfere in the distribution of a portion of the movie’s future profits.

And for collectors (or even investors), there’s also the fact that this NFT may be the first one of many similar initiatives.

Distribution is another area that can witness a complete revamp thanks to Web3.

The current model heavily favors distributors, often to the detriment of filmmakers, but in several aspects, it can be improved:

 📽️ Creators can bypass traditional distribution channels, directly reaching their audience through digital platforms - including screenings in metaverse platforms for an immersive experience.

 📽️ Smart contracts ensure transparent and fair royalty distribution, all traceable, verifiable, and immutable.

 📽️ With blockchain technology offers a new level of accountability in accounting operations. Some platforms allow filmmakers to build a community around their work and guarantee transparency in post-release financial transactions.

Moreover, Web3 empowers filmmakers to explore innovative release strategies, from tokenized digital tickets to NFT-based collectibles that unlock exclusive content.

This approach not only diversifies revenue streams but also engages the audience in unprecedented ways, turning passive viewers into active participants in the film's ecosystem.

In summary, Web3 can be positive to the film industry in many different ways:

→ Financing: Direct crowdfunding through NFTs and/or Token sales, allowing creators to retain more control and offering investors a share in profits.

→ Distribution: Decentralized platforms and smart contracts guarantee a fairer, more transparent distribution model.

→ Engagement: Innovative release strategies engage audiences beyond traditional viewing, turning them into stakeholders in the film's success.

→ Transparency: Blockchain technology ensures accurate, tamper-proof accounting, enhancing trust between filmmakers and investors.

And there’s a company setting a very high level when it comes to applying the best of the Web3 ethos and possibilities into the film industry.

Time to meet Film.io.

What is Film.io?

As I mentioned at the start of this edition, we talked about Film.io in a previous edition. But just so you don’t have to get back there, here it is:

Film.io is a groundbreaking Web3 platform designed to revolutionize the film and entertainment industry by leveraging the power of blockchain technology.

It establishes a decentralized ecosystem where filmmakers, creators, and fans collaborate to bring cinematic projects to life.

Speaking of creators: Film.io empowers them with tools for funding, development, and distribution, ensuring they retain control and rights to their work - if you ever worked in audiovisual, I’m pretty sure you know how hard it is when it comes to getting these things.

When it comes to fans and investors, the most interesting aspect is that they can directly participate in the filmmaking process, supporting their favorite projects through votes and financial contributions.

This participatory model democratizes the entertainment industry, making it more accessible and equitable. With its unique approach, Film.io aims to disrupt traditional filmmaking, offering a transparent, collaborative, and innovative environment for creators worldwide.

Pain points addressed in the film industry

From automotive to videogame, from fashion to real estate - We know that any industry has its specific challenges.

After understanding what Film.io is, it’s time to understand what it is trying to solve in the film industry.

🎬️ Ownership and Rights Management: Unlike traditional filmmaking avenues where creators often relinquish control over their intellectual property, Film.io leverages blockchain technology to ensure creators maintain ownership and control over their rights.

This means filmmakers can manage licensing, distribution rights, and royalties directly, without intermediary influence.

🎬️ Collaborative Creativity: Film.io introduces a decentralized approach to content creation, where the community, including fans, fellow filmmakers, and investors, can participate in the development process.

This collaborative environment not only democratizes the decision-making process but also harnesses collective creativity to refine and improve projects.

🎬️ Direct Funding Mechanisms: Through the use of $FAN tokens (we’ll explore this topic later on), Film.io provides a platform for creators to present their projects directly to an audience that can financially support them through decentralized finance (DeFi) mechanisms.

This direct line to funding bypasses traditional gatekeepers in the industry, offering a more transparent and equitable model for project financing.

🎬️ Decentralized Distribution: Film.io facilitates a decentralized distribution model, allowing creators to reach audiences globally without the need for traditional distribution networks.

This model can potentially disrupt conventional content distribution, offering filmmakers more freedom in how and where their content is viewed.

🎬️ Enhanced Audience Engagement: The platform encourages active audience participation, where viewers are not just passive consumers but active contributors to the filmmaking process.

Through voting and feedback, the audience can influence project development, creating a more engaged and invested viewer base.

🎬️ Immutable Record Keeping: Blockchain's inherent nature provides an immutable record of ownership, transactions, and interactions. This transparency builds trust among creators, investors, and audiences, ensuring fair recognition and compensation for all parties involved.

🎬️ Opening New Avenues for Creativity: By reducing the barriers to entry for filmmakers and offering a platform for experimental and niche content, Film.io fosters a diverse range of storytelling that might not find a home in mainstream cinema.

This inclusivity enriches the film landscape with fresh perspectives and unique voices.

To learn more about the solutions brought by Film.io to the film industry, check the video below:

“Hey Diego, back to that ‘$FAN Token’. What’s the deal with it?”

The $FAN token is primarily a governance token, empowering holders with voting rights on key decisions within the Film.io ecosystem. This can include greenlighting film projects, platform upgrades, and changes to the operational framework.

It also serves as a tool for community engagement and incentivization, rewarding users for contributions such as reviewing content, participating in discussions, and promoting the platform - and if you have been following me for a while, you know how much I love the “community building” aspect of Web3.

(We talked about loyalty in Web3 in different editions, but specially in #10 and #23)

Finally, holding $FAN tokens can grant users access to exclusive content, special events, and early screenings, enhancing the user experience on Film.io.

Let’s now explore some interesting use cases for the $FAN Token:

📽️ Project Voting: One of the core functionalities of the $FAN token is to allow holders to vote on film and TV projects submitted to Film.io. This democratic approach ensures that the most popular and community-backed projects receive funding and support.

📽️Platform Governance: $FAN token holders can propose and vote on changes to the Film.io platform, including feature updates, partnership proposals, and more. This ensures that the platform evolves in a direction that benefits the whole community.

📽️ Staking Rewards: Users can stake their $FAN tokens to support the platform's liquidity and, in return, receive rewards. Staking not only helps secure the platform but also offers holders a way to earn additional $FAN tokens.

📽️ Creator Support: Fans can use $FAN tokens to support their favorite creators directly by contributing to the funding of their projects. This direct line of support fosters a closer relationship between creators and their audience.

📽️ Access to Premium Content: $FAN tokens can be used to unlock premium content on the platform, including exclusive behind-the-scenes footage, director's cuts, and special interviews.

📽️ Community Contests and Rewards: Film.io can host contests and challenges for its community, rewarding participants with $FAN tokens. This encourages active participation and content creation within the ecosystem.

📽️ Marketplace Transactions: In the future, Film.io plans to integrate a marketplace where users can buy and sell film-related merchandise, digital collectibles, and more, using $FAN tokens as the medium of exchange.

“I’ve got a film project, but can’t find any way to fund it”

The Go Score™ Creator Challenge:
Funding the community’s creativity

Keen to support independent filmmakers, Film.io created the Go Score™ Creator Challenge. We are talking about a $10,000 grant, backed by the Global Creativity Foundation Liquidity Fund, which will be awarded to the film project achieving the highest Go Score on Film.io.

The Go Score™ is a key part of the Film.io decentralized filmmaking ecosystem. It assesses fan involvement, token stakes, project reviews, and more - then it consolidates indicators of enthusiasm and momentum to rank projects based on their developmental potential.

Any film uploaded to the platform after January 20th, 2024, automatically qualifies for consideration. Projects submitted must adhere to Film.io guidelines. Eligibility for the Go Score™ challenge applies only to projects that have been successfully submitted and accepted by Film.io DAO admins.

Through both financial backing and validation via the data-driven score, the challenge offers unrecognized talent a platform to launch their creative aspirations.

Film.io official SXSW Filmmakers Lounge

As the official sponsor of the SXSW2024 Filmmakers Lounge, Film.io announced an exciting SXSW Collaboration Grant – a $30K initiative designed to not only support creators but also fans who engage and support creators throughout the competition. The $30K Grant challenge began on March 1st and will run until May 4th, 2024.

For exclusive interviews from the Film.io SXSW Filmmakers Lounge follow Filmio_official on X, Instagram, or join the Film.io official Telegram server.

By highlighting and encouraging the scoring system, Film.io highlights its creator-first philosophy, aiming to democratize and revolutionize the entertainment industry.
The Go Score™ marks a notable shift from traditional project evaluation methods and introduces transparency, user reputation, and fan-driven validation into the film greenlighting process.

Stay tuned to Film.io social channels to learn more about future funding rounds - whether you are a filmmaker, a fan, or an investor, this might be your chance to leverage Web3 to enter the film industry.

Film.io & The Wild West of Web3:
A gift for our community

Usually, anyone who joins Film.io receives an initial FAN Token grant of 100 $FAN. In edition #23 they kindly gifted our community with extra tokens, and they decided to give us a second chance of obtaining these extra tokens 🙂.

Sign up for a Film.io VIP through this link and claim 250 $FAN Tokens instead of the usual 100 😎.

See you soon.

#LFGrow
Diego Borgo