NFTs in Film and TV: How Hollywood is Embracing NFTs
NFTs, or Non-Fungible Tokens, are one of the hottest topics in the blockchain and cryptocurrency world. NFTs represent a new type of digital asset that has never been seen before. I’ll give you an example: NFTs can be used to create unique assets on games such as Cryptokitties and Etheremon. You can own NFT versions of famous film characters like Pikachu from Pokemon! NFTs have also been integrated into Niantic's augmented reality game Ingress Prime with the introduction of both Agent and Item Cards. These cards, which were designed by Niantic themselves, will allow players to customize their agents with different outfits and weapons while playing the game for rewards.
NFTs are also being used in the film industry. A platform called Fan blocks is allowing fans to buy NFT tokens that represent movie tickets for films such as Avengers: Endgame and Aladdin, which will be tradable on a secondary NFT marketplace later this year.
The possibilities for NFTs are endless and it's clear that they are going to play a major role in the future of the blockchain and cryptocurrency world. I can't wait to see what else is in store!
Traditional digital art such as movie posters and other online collectibles can be easily copied and pirated online but the NFT, which is secured via blockchain technology guarantees the certificate of authenticity, so owners can buy and sell the NFTs like any physical collectible. As a result, Hollywood is looking towards NFTs and how they can be used to boost revenues. Directors, producers, distributors, and financiers are turning to NFTs to revolutionize the entertainment industry.
How Hollywood is using NFTs:
- Productions from Kevin Smith, Jennifer Esposito, and Anthony Hopkins are those considering using non-fungible tokens.
- Clerks director, Kevin Smith, took the NFT experiment in April 2021, announcing he would auction off his upcoming horror feature film Killroy Was Here as an NFT. “Whoever buys it could choose to monetize it traditionally, or simply own a film that nobody ever sees but them,” Smith noted.
- NFTs featuring previously unmentioned "secrets" from Quentin Tarantino's hit 1994 film Pulp Fiction is being auctioned off. In fact, each NFT will be connected to pages from Tarantino's original handwritten script of the film, which reveal new information about the process of developing the story.
- Animated series “Stoner Cats” raised USD 8.4m at the end of July 2021 in a sale of NFTs (that grant holders the exclusive right to watch episodes), selling out in only 35 minutes.
These are only a few examples of how stakeholders in the film industry are considering using NFTs.
One of the really exciting moments is the chance that NFTs will not only provide a new source of merchandise but can help raise money. Smaller indie production companies can secure financing by using NFTs to let viewers vote on plots, cast members, and other things. In addition, NFTs will give production companies more control of their financing, while bringing them closer to their audience. Production companies can choose how many NFTs of their film they want to distribute, and if they want to package it with exclusive artwork, behind-the-scenes footage or other limited content.
With this technology, production companies can finance a project while building a fan base that will watch the movie once it is released. According to reports, industry insiders suggest an NFT strategy can provide 5 to 10 percent of the financing, which could be enough to put previously disregarded projects to the finish line.
'Spider-Man: No Way Home' NFT
Most recently, AMC offered an NFT for the upcoming 'Spider-Man: No Way Home' feature film.
Sony and AMC Theatres worked together in a marketing promotion offering non-fungible tokens to the first 86,000 people who bought advance tickets and were members of AMC’s Premiere, A-List, or Investor Connect programs. Currently, NFTs account for a major part of the attraction and the majority of advance ticket sales.
Quartz reported that scalpers started offering up the tickets at prices ranging from $200 to $25,000, which is far more than the market value of any movie ticket. This shows people are paying for the NFT rather than the ticket. That said, Quartz reported, no one has purchased the higher-priced tickets, but the auctions are still ongoing, with hopeful NFT entrepreneurs waiting to see just how valuable the public thinks these tokens could become.
While Sony and Spider-Man may be leading the biggest movement on this new trend, Warner Bros. is also introducing NFTs for the upcoming release of 'The Matrix Resurrections.' These NFTs will be interactive, unlocking various features as time goes on.
Mike Rubin, the founder of Dreamium Labs, a Los Angeles-based NFT startup, told Quartz, “The next phase will be interactivity and more personalized fan engagement with their favorite movie characters.”
How does an NFT work?
NFTs are unique digital assets that exist on a blockchain. They can be used to represent anything that has value, from goods and services to art and intellectual property. NFTs are created when someone purchases them with cryptocurrency. The holder then owns the NFT and can do whatever they want with it, such as sell it, trade it, or give it away. NFTs can also be used to represent digital rights, such as the right to stream a movie or an episode of a TV show.
Cryptocurrencies are digital tokens that use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to any single authority. NFT is a term that was coined to represent non-fungible tokens, which are blockchain assets with unique identifiers and the ability for an owner to control access to them.
NFTs will be used more often as time goes on in the film industry since movies have mass appeal from both those who enjoy NFTs and those who want to invest in NFTs.