Jan. 4, 2024

Exploring Non-fungible tokens (NFTs) in Film

The film industry is undergoing a transformative journey with the integration of NFTs. From financing movies to reshaping distribution and engaging fans, NFTs are redefining the way we experience and support our favourite films. By: Wee Yan Ling

The film industry is revolutionising with the advent of NFTs. Contrary to popular beliefs, they are not mere collectibles and have paved new routes for financing films, owning shares and profiting through NFTs. The plethora of possibilities present in NFTs are endless and left for us to explore more. 

The introduction of NFT has allowed for investors to play an active role in bringing films to life. In addition, NFTs allow for exclusive rights to promotional materials and collectibles which can tap into the existing market of media collectors. This possibility goes beyond the realm of TV shows and films as it expands into the region of gaming too. 

Beyond the endless bounds of possibilities NFTs have to offer, the current landscape is not without its sceptics. Many have argued that the sustainability of the NFT market is propelled by celebrity endorsements rather than the intrinsic value they possess which has raised concerns regarding the potential bubble burst.

One prime example is the NFT Gold Rush by Jimmy Fallon and Paris Hilton in 2022. The astounding prices fetched by celebrity-endorsed NFT despite their original digital content have raised eyebrows regarding the legality of the investments. According to NonFungible.com, the average price of NFTs were at $150 in the third quarter of 2022.

NFT has drastically redefined the way filmmakers interact with their audience. They have allowed for direct communication with fans which has disrupted the traditional film distribution models. One example is Zero Contract, a Hollywood blockbuster where they embraced a direct-to-consumer NFT launch on Vuele and had garnered around $100,000. NFTs has also won the hearts of fans as the unreleased footage auctions and limited edition art book sets were highly favoured and well received.

As the popularity in NFTs continues to rise, their role in the film production financing is also expanding. The Forest Road Company’s $20 million NFT fund is helping indie filmmakers monetize their content.

Though the landscape of NFTs sounds rewarding and promising, it is salient to note that the industry also poses its own set of challenges due to the volatile market and the unpredictable fluctuations driven by speculation. 

The minting process of NFTs can also incur high charges which at times reaches prohibitively expensive levels. Hence, as stakeholders navigate through the realm of NFTs, they must be mindful to balance the promises of this digital frontier with its potential pitfalls. 

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