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Berlinale 2018: Why the Blockchain Could Fundamentally Change How Business is Done in the Film Industry

Berlinale 2018: Why the Blockchain Could Fundamentally Change How Business is Done in the Film Industry

I recently wrote this piece for the film community at NoFilmSchool.com.

A new company is using the blockchain to help eliminate waste (and shady people) in the film industry.

[Author’s note: Prior to reading this article, it is advisable for readers to peruse the Wikipedia “Blockchain” entry or the briefer definition of Blockchain in Investopedia.]

Technology and the film industry have had a historically rocky relationship. 20 years ago, Blockbuster ruled the at-home video market and famously (or infamously) rejected the opportunity to purchase Netflix for a mere $50 million. Today, Netflix has a $120 billion market cap and is poised to dominate the film industry for years to come.

Yes, market leaders like Netflix and Amazon are surely experimenting with algorithmic programming and Artificial Intelligence (AI) in attempts to take humans out of the screenwriting equation to give viewers what the companies think they want. But there are other forms of technology that can help improve the independent film business and even have the possibility to revolutionize how films are made—and more importantly, how production staff from actors to directors to below the line crew are paid. 

Enter FilmChain, a project started by BigCouch co-founders Irina Albita and Maria Tanjala. The goal of FilmChain is to increase accountability and transparency in the murky independent film financing world by using blockchain, the underlying technology behind Bitcoin. However, during their presentation at the Berlinale’s European Film Market startup pitch event, the pair were quick to debunk the myth that blockchain and Bitcoin are one and the same. Let it be known, they aren’t! As an oversimplified way to distinguish them, Bitcoin is a digital cryptocurrency, and the blockchain was developed as a decentralized way to record and account for Bitcoin transactions which has now expanded to use for a variety of commercial applications.

FilmChain is a revenue collection and allocation platform operating on blockchain technology that aims to service film and digital content creators by collecting revenues and automatically distributing them to stakeholders. If successful, FilmChain will mean that one can say goodbye to loads of middlemen who take a piece of the pie during the filmmaking process. 

The benefits of the blockchain to help film distribution processes are many: global transactions are typically costly, frequently people don’t get paid for the work they do, and the accounting books on numerous independent productions either is non-existent or riddled with errors.

Manuel Badel of Badel Media in Canada discussed other strong points of how blockchain technology can improve the film business:

  • IP protection - proof of ownership
  • Digital rights management - registration, tracking, royalties
  • Contracting - automation and smart contracts between stakeholders
  • Collaboration - scriptwriting and product design
  • Micropayments - tokens, crypto, crowdfunding, royalties, recoupment
  • Content distribution - decentralization, trust, and disrupted distribution. 

Who will gain?

Who stands to benefit from this FilmChain technology? Anyone who works on a production!

What makes “smart contracts” revolutionary is that they are triggered automatically. For example, say you are a screenwriter based in America and your contract says you will get paid $10,000 on the first day of production of a film produced and set in China. Once that first day of production happens, your $10,000 will automatically be triggered and you will get paid. Contracts could be set up such that, for instance, three individuals confirming that production started on a specific day would be all that is necessary to send an instant payment halfway around the world. 

Who will lose?

And who stands to lose from blockchain technology being implemented in the film business? Shady film financiers who don’t make good on the payouts they owe, therefore stealing money from others who rightfully deserve it.

Of course, shady film financiers may never voluntarily utilize a system such as this one, but if FilmChain (or similar platforms) become the norm, then staff members on productions that do use this technology would stand to benefit. Film financiers would benefit too as the myriad bank transfers and other international payments they send would become much less expensive as the systems become automatic and tech-enabled.

FilmChain won’t be implemented overnight. But it and similar projects surely present a hopeful future. Anyone who has ever been screwed over by a shady financier or producer, or even has just waited far too long to get paid for freelance work, stands to gain if blockchain technology is implemented into the film business. 

 

 

The Berlinale: A film festival experience like no other.

The Berlinale: A film festival experience like no other.

If there is one film festival that I love going to, it is the Berlinale. Yes, Berlin is absolutely freezing in the winter, but it is also incredibly cozy. There is a je ne sais quoi about Berlin that I frequently try and fail to put my finger on. First off, it is incredibly less expensive than most other European cities. This means that you can live a bit of a high life for a few days while there. The films I saw, including The Lost City of Z and Viceroy's House, were of course among the best in the world. The film market, was also buzzing with people from all over the world who want to buy the world's best films. And, of course, the parties at night are unlike any other. From the BFI to various Polish parties I attended, a few days in Berlin is just as good as going to a warm, sunny place. 

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As IndieWire writes, "As ever, the annual fest is playing home to dozens of feature films and short offerings, with picks aplenty from both modern masters and fresh faces. The Berlinale often breeds some of indie film’s most unexpected and unique standouts, so if it’s at the fest, it’s likely worth a look."

My favorite documentary at the festival was For Ahkeem, about an African-American girl growing up in St. Louis. Shot over many years, the film highlights many of the struggles of growing up in America. The Berlin Film Journal writes, "For Ahkeem follows Daje Shelton, a young seventeen-year-old girl who is struggling to find her way in a social environment enriched by a feeling of cultural failure and the constant struggle that accompanies the process of dreaming for a better life. At the beginning of the film Daje makes a statement: “People been labelling me a bad kid all my life. You don’t have to really do nothing, people just expect it. So you start to expect it yourself.”

It continues, "By claiming this, Daje sets the tone for the documentary, making the audience aware that her story is unique but also part of a bigger picture of what being young and left behind means. The film begins at the moment Daje gets expelled from school and sent to a court-supervised high school, which is her last opportunity to graduate and get her degree. It’s painful to witness fight -or-flight survival mode Daje can’t seem to escape, however by following her in a conscientious, intimate way, the documentary makes an important point about the cultural trauma of what it means to grow up in a world where it is very likely that you will be shot before you reach adulthood."