How decentralization and Blockchain Technology will change the Film industry, providing transparency for filmmakers?

Movie and show/event financing will become a liquid market creating a new asset class!

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“Film and show/event financing will become a liquid market creating a new asset class”

It’s impossible to say who’s got or lost money in the process from making a movie or show, why this film costs that much to rent or to own.

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Will digital content licensing will migrate to blockchain?

It’s not controlled or operated by any organization or entity; rather, any transaction is confirmed by a protocol and enforced automatically via smart contracts’ code;

It enables transparency (it’s easy to count transactions of any type and their values), while maintaining privacy (a user is represented by a digital id, like a wallet number).

Lack of supporting legislation;

Need for mass adoption;

Backward compatibility with existing systems and solutions.

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Content storage, delivery and protection will evolve:

Hundreds of distributors around the world will receive, ingest, transcode, encrypt, store content files and upload them onto CDNs.

Content owners will gain control over the downstream chain:

Types of windows / licenses (theatrical, premium VoD, transactional VoD, subscription / Pay TV and finally ad-supported VoD / free-to-air TV);

Flexible pricing (a combination of auction-based pricing for window openings and moving to standard tiered pricing levels in time).

Examples of such novelties could be:

Using supply-demand matching before opening of premium VoD window (2–4 weeks after theatrical premieres instead of current 9–12 weeks) to establish fair starting price for the eager first watchers (could be $50–100 for a much-expected blockbuster premiere, for example);

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Content licenses will become portable and platform-independent:

Once the legislation changes to embrace such a case, the large secondary market of digital licenses will appear.

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Transactional platforms like iTunes will become less relevant:

Licensing operations will shift to blockchain;

Payment operations will shift to blockchain and payment providers;

Content operations (transcoding, delivery, subtitling etc.) will be largely gone towards CDN providers and content specialists.

The remaining possible differentiators will lie in the user-related areas:

Being better in marketing and content discovery, i.e. getting the most relevant content in the least possible time;

Providing better viewing experience (content quality, support of devices, offline viewing, languages and subtitles, etc.)

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Marketing and content discovery will be essential as ever:

On the consumer side, the problem of choice is also getting more and more acute.

Using some third party to keep and share preferences would do little help and will not let us really control our digital selves.

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Is it possible to create a true decentralized DRM (digital rights management) system that will replace current proprietary tech like PlayReady, Widevine, FairPlay?

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Peter Moore

Peter has lived in New York, Los Angeles and London working in the music, film and TV industries for over three decades helping creators realize their vision.