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NFTs are being used by moviemakers in a number of ways to finance projects and add a new dimension to merchandising, with such industry giants as Quentin Tarantino getting in on the act.
While the use of NFTs is becoming more widespread, the concept has been used before. They are now being offered as an ‘investment’ opportunity as well as a way for movie producers to make money. As is often the case, Ryan Reynolds was well ahead of the curve in 2018, when a limited edition digital poster for Deadpool 2 was developed by the studio 20th Century Fox. This exciting new development was a thrill for tech-savvy movie fans with an interest in collectibles.
Indie Filmmakers
Funding for film projects can be difficult to obtain. In recent years, many new and established producers have turned to alternative methods to raise money. Crowdfunding is still a popular way to get projects off the ground.
For newbie filmmakers with some technical skills, developing NFTs to cover production costs can be done with relatively little equipment. A good idea, a high spec laptop, and software are all that you need to start minting your NFT ideas. Most use standard laptops with video editing and sound production software if necessary. Audio NFTs are also becoming more and more popular, but if you’re bootstrapping, then address any microphone problems or sound quality issues first.
Using NFTs in this way can solve a number of perceived issues with the current movie funding system. Many studios have reduced their funding for new original projects, preferring instead to invest in existing IP. Presently, it can take almost 8 years from initial funding talks to a movie hitting screens. NFTs are being hailed as a way to equalize this process, giving new filmmakers a shot, while allowing audiences to directly influence what types of movies get made.
Audience ownership
Merchandise is a huge source of revenue for many film studios and NFT represents the new source of income. But there are a number of other interesting ways that NFTs could shape the future of the industry. For example, the could be used to let buyers vote on the development of characters or plot. Or buyers could have special viewing rights to episodes and special edition formats.
Exclusive content such as talent interviews, making of and behind the scenes footage could find itself bundled into an NFT package.
A great example of this is the Vuele platform. They had an exclusive premiere of the movie Zero Contact starring Anthony Hopkins during the pandemic. Vuele created a range of specialist NFTs which are then auctioned off. One of these NFTs allowed the owner to be digitally edited into the movie alongside the main cast.
It’s not just smaller productions that are benefiting either. Legendary director Quentin Tarantino created unique NFTs from his original handwritten Pulp Fiction screenplays. A copious note-taker, the scripts are filled with original handwritten corrections and observations. These pages were then auctioned off to fans and collectors.
Getting to grips with the concept
The entertainment industry is still in the early stages of working out how best to use NFTs. While some people have embraced the concept and made it work for them (Quentin Tarantino), there is still a lot of confusion. One of the most high profile concerns the IP around Dune, the novel by Frank Herbert which was has been adapted for the screen twice already. Before the latest version, director Alexander Jodorowsky was getting ready to make his own version. However, for a number of reasons, this fell through and was never made. The art concepts and other interesting info were gathered together to make the book Jodorowsky’s Dune, which was offered as an NFT. It was bought by a group called Spice DAO for an eye-watering $3 million. The group mistakenly believed that they now owned the rights to Dune, and were planning to create many spin-offs and other projects from it. The trouble is, they had no rights to the story and their investment was essentially worthless. Spice DAO had crowdfunded fans of the book, promising them a say in the future of further productions. They had even planned to burn the book and sell the video of it being burned as an NFT. How meta.
Conclusion
It’s still unclear if NFTs are here to stay in any real way. Only time will tell. In the meantime, it is fascinating to see how the film industry is adopting the concept and using it to change the way movies are funded and how fans interact with projects on a personal level.
