Unlocking Revenue Streams: How LALA’s Digital Collectibles Provide Payouts from Movies
An easily digestible explanation that provides clarity and transparency.
The Concept
We at LALA are excited to introduce a groundbreaking feature that goes beyond traditional collectibles. Our LALA x The Wolf of Wall Street digital collectibles not only grant you ownership of unique digital art but also provide access to a fractional revenue stream derived from the film’s intellectual property (IP) enforcement from copyright infringement.
Since this is the first time (ever!) that fans have had the chance to access these revenue streams, we wanted to help break it down and make it easier to understand. Here, we’ll explain how our digital collectibles revolutionize the concept of revenue sharing and empower collectors with a new level of financial participation and deeper connection to the film itself.
What LALA is Doing
LALA has partnered with The Wolf of Wall Street IP owners for this first collection. Typically, a film or show has a few different revenue streams from which it generates revenue — such as but not limited to box office, licensing for streaming, merch, and IP infringement. In this partnership, LALA will be offering fans access to the IP infringement revenue stream, specifically for bootleg or illegal merch from the film.
For Drop 001: The Hustle, 33% of the total revenue recovered from enforcing this IP (after legal costs) will be fractionalized and distributed to collectible holders on a semi-annual basis for as long as you hold onto it, up to 10 years. Based on the tier of collectible purchased, you will have a different fractional percentage of this 33%. As for the remaining 67% of this revenue stream, we’ll be gradually distributing that in future drops so more fans have the chance to own a piece of this iconic film.
Here’s an infographic to help explain:
How It Works
1. Purchase your LALA collectible
When you purchase one of our digital collectibles (also known as NFTs or non-fungible tokens), you become a proud owner of a digital artwork that represents The Wolf of Wall Street. This serves as your key, or token, to accessing the benefits and perks associated with that collectible, including the revenue generated through the enforcement of the film’s copyright and intellectual property (IP) rights. By using blockchain technology, we are able to track and authenticate who has ownership of which collectibles and handle fractionalized payouts.
2. Our legal team handles IP enforcement initiatives
Our team diligently monitors and identifies instances of unauthorized usage, distribution, or infringement of the film’s intellectual property. For our partnership with The Wolf of Wall Street, we are specifically responsible for the enforcement of copyright for unauthorized merchandise sold on online marketplaces like Etsy or Amazon.
3. Revenue is recovered by LALA
When we enforce the IP against infringers, our legal team may recover financial compensation from the infringing parties. After we deduct the costs required to execute the enforcement by our legal team, all of the remaining revenue generated from these actions is then distributed among LALA holders according to the percentage that your collectible indicates, creating a fractional revenue stream. This is how we give back to the fans.
4. LALA distributes this revenue to the fans
Based on the number of LALA x The Wolf of Wall Street collectibles you own and from which tier, you are entitled to a proportionate share of the revenue we recover from enforcing the IP. This fractional revenue distribution ensures that each LALA collectible holder receives a fair and transparent portion of the financial rewards. Payouts will be sent to collectors on a semi-annual (twice yearly) basis.
Transparency and Accountability
We prioritize transparency and accountability throughout the revenue-sharing process. To ensure trust and clarity, we will provide updates to our collectors with each semi-annual payout, sharing the IP infringements and the corresponding revenue recovered. Our goal is to empower collectors with a comprehensive understanding of their fractional ownership.
What to Expect from Payouts
By owning our digital collectibles, you not only have the ability to deepen your connection with The Wolf of Wall Street through access to content, communities, exclusive merch and experiences, but you also have the potential to generate passive income through the revenue stream resulting from IP enforcement.
That said, we want to be clear that this is not going to be a significant source of income and this is not investment advice. To give you an idea of what type of payouts to expect, we provided annual estimates per tier based revenue recovered from last year’s IP enforcements, though we can’t give a set number because these infringements vary per year. Additionally, revenue from films tends to have a long tail. Meaning it’ll keep producing money as long as it remains relevant.
For General Release, we estimate that you’ll receive the equivalent of a cup of coffee from your favorite coffee shop; Limited Edition can expect to receive a payout that equals a couple of beers at the bar give or take; and Director’s Cut would be closer to receiving the equivalent of two premium movie tickets, more or less. These semi-annual payouts will continue for as long as you hold the digital collectible, up to 10 years, which is the duration of our contract for owning this revenue stream. Think of it like a cash-back program in the sense that you get a small amount back each year for your fan loyalty.
Let’s Create the Next Generation Fan Experience Together
At LALA, we believe in expanding the possibilities of NFT ownership for all, beyond mere digital collectibles. Our collectibles provide a transformative experience and offer fans an empowering sense of pride by granting unprecedented ownership to a fractional revenue stream, in addition to accessing a whole ecosystem of online and offline perks.
Join us on this groundbreaking journey, where emerging creators and iconic IP converge to redefine the value of digital assets and the fan experience.
Get ready for Drop 001: The Hustle by creating your account at LALA.xyz.
~Your friends at LALA
