Fyooz to revolutionize the film industry
Film is perhaps the most capital-intensive art form, which is why independent film in particular is suffering from current market dynamics. By Fyooz-ing film production, Fyooz will make history by giving the film industry and culture new vitality and impetus.
Hollywood is already listening and in a recent chat with Hollywood movie director Marc Forster, he said.
“Fyooz will be revolutionary for the film industry. Imagine a movie world, with new ways of fundraising. Someone who believes in a filmmaker has the opportunity to easily offer support and then benefit from their success. Movie directors and producers gain tremendous and powerful independence. Fyooz gives them the freedom to create and produce the stories they feel are important to this world.”
Economic Importance of Fyooz to the film industry
From an economic perspective, the greatest opportunity for the film industry is to diversify and invent new revenue streams, rather than focus exclusively on producing one product: the film itself. The tokenization capabilities of blockchain make it easy and inexpensive to derive value from many different aspects of film production. Via tokenization, not only does the film itself have value, but also actors, various goods, symbols and ideals in and around the film can have value, opening up new fundraising avenues.
At the same time, filmmakers can free themselves from the existing film production value chain, primarily dominated by a few large players who own the access to investment capital, talent and distribution, which in turn restricts artistic freedom, diversity and quality. By extending the revenue options and the potential investor pool to a global audience, independent filmmakers can begin to extricate themselves from the limitations imposed by the existing value chain.
Tokenization enables the creation of a direct channel between the issuers of a token and the audience who buys the token. This means that in addition to the speculative element of investing in a film, the purchaser of tokens can gain access and privileges. Film producers can offer access to benefits such as exclusive content, participation in events, meet and greets, or voting rights for decisions in the context of the production of the film. In addition, the audience can invest in more emotional aspects of a film, such as actors, fictional characters, filming locations or other assets, such as props, cars, paraphernalia. The broadening of options creates a new opportunity, based on emotion, closeness and connection.
The Challenge and the Solution
The possibility of assigning financial value to abstract concepts such as ideas, characters or brands can be an enormous opportunity for the film industry. Below we list many examples of how tokenization can solve some of the independent film industries’ toughest challenges.
New Sources of Revenue
The price-performance ratio between a visit to the cinema and other leisure opportunities is no longer acceptable for a wide audience. The shift of film consumption to the home reinforces this trend. More so than ever due to the current global pandemic, film consumption is home based. Film revenue is still mainly generated through the box office. To counteract the dwindling proceeds, films can no longer be viewed as a single product. By tokenizing film-related goods that also have financial value, film production sells more than just its end product. Films then become a platform for launching many different products and companies. The best part? Symbolic assets have no production costs and are independent of logistics and middlemen, so the additional revenue stream comes with almost no additional cost or effort.
Investors and Liquidity
Historically, film investments have always been a long-term investment with little predictability of the ROI. Apart from isolated crowdfunding projects, there has been no innovation that improves access to investment, and certainly no attempts to increase liquidity — neither through exit strategies nor secondary capital markets. Without an exit option, the potential investor pool is significantly limited. Illiquid investments are therefore less a matter for “investors” and more for “patrons”. With the introduction of the Fyooz marketplace, where even a film idea or concept can be a tradable commodity, millions of new potential investors are accessible. Thus, early on in the production cycle, filmmakers can assess the viability of a film project. If a token sale for the film’s concept is successful, the film producers receive pre-financing for the project and can offer a larger ROI for early investors if the film is successful. Since the film project can be traded on the Fyooz marketplace, like a share, there is always the possibility to enter or exit the project with financial means.
Owning the Audience
Filmmakers have no direct access to their audiences, a considerable risk in today’s world where streaming providers own the viewers. With Fyooz, filmmakers can now build their own audience well before the film is launched. Martin Kistler, Founder of Ignition Creative, when speaking about Fyooz said:
“This type of community generates huge value for the production, allowing micro-investors, fans, actors and friends of the production staff all unite behind the film’s success. The world is full of amazing filmmakers without direct access to their audiences. With Fyooz, filmmakers now have the opportunity to make their own audiences”
Most will even advertise, some passionately, their association with the film through their own channels, expanding the audience even further. Owning the channel by the audience shifts the balance of power considerably.
Marketing Tool within the Narrative
Filmmakers, distributors and marketers have accepted a dividing line between art and commerce, between content and marketing. Today, filmmakers are largely excluded from using marketing tools in their narrative. Bringing narrative techniques into marketing brings significant advantages for commercial success. Just as television has long since used the potential of value-added services for broadcasting, the inclusion of tokens for sale, and the associated added values in the narrative, opens up a completely new potential. Product placement serves as an example: A real product like a movie car can be embedded as a token in the narration, around which value-added services can be built. For example, the token owners have the right to participate in the draw for the real movie car.
The film business is still the domain of the privileged. Film is an expensive art form and is subject to fierce competition. In the film industry, practically everyone has to do an internship — and since the offer to work for free is unaffordable for many, participation in the industry is already closed off to a privileged few. Life in the film metropolises is also expensive. Because of this homogeneity, the film industry produces more and more of the same, applying to both people and the products of the film industry. The new financing options offered by Fyooz open the doors to new market participants: Filmmakers, investors and all sorts of talent, benefiting the entire industry.
Securing celebrities for a film entails significant upfront investment, putting significant strain on the budget. As long as the celebrities have not yet issued their own tokens, there is a great opportunity for film producers — by securing shares in the star tokens — that can be released as part of the film production.
Since the token means access to stars, products and content, it becomes a fetish/fandom object through which one can demonstrate their love of film and share it with friends.
Shared Event Experiences
So far, the film industry has given little thought to how to extend the value chain to events related to films. Pre-financing through token sales can highlight popular events that are networked with other arts or platforms. For example, possession of a film token can authorize entry to a live concert by the band that writes the movie theme. The world of experience and the character of the event can thus be expanded far beyond the actual film experience.
Extension of the Story
Not only can the world of experience be expanded, the story surrounding the film can also be elongated. New utilities related to the film can be continuously introduced and communicated. This permanently provides feed for the media and thus increases the attention span for film production.
Connectivity and Community
People are looking for connectivity and community more than anything else. Token owners are connected. And they are committed. They are much more than passive followers. They are believers. The film production brings with it a sense of community. Imagine the premiere of a film packed with highly committed token owners.
Extension of the Value Chain
Everything is linked. The value of an actor’s token largely depends on the production of the film and vice versa. A city that promotes film funding can use the income from a city token sale to attract film productions. Tourism in turn benefits from more films being produced in a given area. In a few years, hotels from a city that serves as a film set may accept a Film or Star Token, as well as fiat currency. Thinking outside the box, it becomes clear that it is in the hands of a film production company to extend its value chain into other areas such as tourism.
The film industry example shows how blockchain and cryptocurrencies have the potential to revolutionize entire industries. Fyooz brings money and liquidity. Fyooz symbolizes belief in ideas, brands and art. Fyooz turns a product into many. Fyooz extends the story. Fyooz connects and breaks boundaries at the same time. Fyooz turns film production into a global ecosystem and extends the value chain far beyond what is the norm today
Author: Remo Prinz, Co-Founder Fyooz