Interview with the CryptoFlix Team
Today, I have interviewed the CryptoFlix team on their ICO and future projects. CryptoFlix is developing a movies streaming and film funding platform powered by blockchain. To reach their ambitious targets, they have just launched a token sale that will last from the 15th of May to the 15th of June.
1) What problem are you solving, why do you need the blockchain technology and what are the main pillars that define your company and differentiate you from your competitors?
CryptoFlix is the first media company on the Blockchain to exploit this huge void in the paid content market, which is only achievable by circumventing the normal payment options and using digital currency. We are also the first Media company — both on the Blockchain and outside — to dare to offer free online content with educational purposes via films and TV to everyone, regardless of their location, origin, or socio-economic status.
Through the development, patenting and utilization of new technologies, our aim is to facilitate users to stream movies legally by making it cheaper than downloading pirated versions.
There are several reasons why we are blockchain based. The White Paper explains this, however in brief: the unbanked have little access to the global VOD providers hence the need to be able to pay in Crypto.
Yes, there are competitors in the market — but many are focused on increasing the quality for “western” users as well as producing more and more own content. Our platform is tailored to meet the demands of both the industry and the users in the developing world.
2) What value are you adding to your industry value chain and which are the main obstacles to the success of your solution?
The economic divide on our planet is getting larger, and there is a growing demand for access to culture and movies online in less developed countries. Millions have no access to the hardware and internet speed needed to stream movies through existing platforms and also their lack of access to banking or credit cards limits their ability to take advantage of the vast possibilities of the internet. This leaves many with no other choice than to watch pirated versions of movies, downloaded illegally. Our vision is to make CryptoFlix a closed network film streaming platform, which will accept payment for feature films, TV by our own FLIX Tokens as well as common cryptocurrencies and which will also offer films and TV for educational purposes to private individuals across the planet, without borders. It will initially be launched in underdeveloped, high population countries.
There are three main challenges in the delivery of content in underdeveloped countries: internet speed, hardware storage limits and piracy. We intend to deliver a user-driven quality of the content so that it will be possible to stream size-compressed films even at lower internet speeds. This deals with the first two challenges and we call this, Your Definition or YourDef.
Piracy could also be a threat to the CryptoFlix Platform, however we intend to combat it by using tools which are built into the business model:
We are developing groundbreaking technology to watermark a streamed copy of a film individually, and we will be able to link to the payment on the Blockchain. We fully expect to be able to patent and license this technology.
Because even pirates have quality standards, we will be helped by the fact that there is more demand for high quality pirated movies, which are difficult to download and store due to file size. There is a reason to believe that the limited storage available on many mobile devices and lower internet speeds will discourage piracy.
The selection of specifically local movies on the CryptoFlix platform compared to a pirated service makes it more attractive to use our platform. The risks of virus, data loss or theft, as well as phishing risks, are eliminated when using our platform. We will use the latest geo-blocking software on paid content — at least until further notice.
Our vision for the new watermarking of streamed films is for this to be a market standard for Video on Demand. Today it is not possible to individually watermark a streaming and link this to a payment and thereby identify the pirate. This will be possible with our solution. We have already started working on this new technology and expect to roll it out on the CryptoFlix Platform with the launch of the platform in Q4 2018.
3) Why did you decide to launch an ICO and why do you need a public Token Sale?
When we were selling the Oscar winning film IDA by Pawel Pawlikowski, which I co-produced, we found it very difficult to find distributors in many underdeveloped countries. And in fact, the total population of the countries where we could not distribute the film was more than 2 billion. We thought it was a shame that so many people would not be able to see our award-winning film.
When we compared the territories sold for IDA with previous films we had worked on, we saw a pattern. Because of the limited distribution opportunities in these markets, none of the films we had worked on, which by the way are all top 1% rated on IMDB, were sold there.
But at the same time, we also found out that our films were indeed available in these markets — in poor quality pirated versions.
So, I decided to create a trustworthy and flexible VOD solution for the Film industry content owners that could be used in these markets. In part to grant access to this massive market, but also to fight piracy by way of convenience, a large selection of new international and local movies and TV and pricing which is competitive.
When we explored the individual markets closer, we learned that across the underdeveloped world, 2 billion people do not have access to credit cards and banking. This leaves them without many of the modern-day options for VOD. Moreover, they do have smart devices and internet access, but the global VOD providers are striving for higher quality on their platforms in general. Therefore, many potential users are not able to use the existing platforms because their device is not from Apple, not new, or because their internet connection is not very good.
That is why we assembled a great team and created CryptoFlix — a blockchain based Movie and TV streaming platform and a Film Financing Market Place.
4) How does your token function within the platform and why is it needed? How did you decide the total supply and distribution among stakeholders?
CryptoFlix can be broken down into: 1) A Paid content streaming platform where it is possible to pay in FLIX (Crypto) Tokens as an alternative to credit cards etc. which the unbanked have no access to 2) A Film Market Place which allows FLIX Token holders to contribute to PROFESSIONAL film projects in different stages and levels of the film industry — each of which will generate a risk dependent return and 3) A Free content educational film and TV streaming platform to educate freely across borders.
The supply and split between stakeholders was decided by examining what volume of tokens was necessary to be available to our users. Also, there is a token support fund.
5) Where do you see the value of your token in the medium to long term and the ultimate benefit for the token holders?
While we cannot speculate about the future value of the token, I can say that if the Platform is successful, then there will be significant demand for the token as we offer a discount on the platform when paying with FLIX Tokens.
FLIX Tokens are also the entrance ticket to our Film Market Place, where quality film projects will seek financing.
6) Thinking about the future, what are your plans after ending the ICO? Are you afraid that the volatility of the cryptocurrency market might affect the economy of your project in any way?
We will dedicate the time necessary to enable us to launch the platform in the first market by Q4, 2018 — only 6 months after the ICO. The time will be split between finalizing the development of the new technology and building up the operational structure and of course sourcing content for the platform.
What is Crypto Unveil?
Crypto Unveil is a not for profit project aimed at providing and sharing free educational and informed content on the blockchain and crypto world.
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Disclaimer: This interview and the information contained herein is not intended to be a source of investment, financial, technical, tax, or legal advice. This interview cannot substitute for professional advice and independent factual verification.
