Here’s Why Filmmakers are Abandoning Crowdfunding Platforms in Favor of NFTs

NFT


For years, independent filmmakers have turned to Kickstarter, Indiegogo, GoFundMe, and the like to raise funds for their passion projects. From critically acclaimed action comedies like king fury to award-winning horror movies like the babadookcrowdfunding has helped make many cult classics come true.

However, times are changing in the entertainment industry. The COVID-19 pandemic has transformed television, music, and film industries that relied on in-person presence back to a semblance of what they once were, forcing creators to think outside the box when launching new projects. .

Enter NFT – a new, strong and growing ecosystem that lives at the intersection of art, technology and finance. Now musicians, actors, designers, and more find it possible to fund various projects using blockchain technology. And as the weird and wide world of non-expendables continues to grow, filmmakers have begun to wonder how they, too, could bypass traditional funding avenues to reach a new demographic of digital-native patrons.

Who finances movies through NFT?

NFT movies have been all the rage lately. Of award-winning actresses like Jennifer Esposito, Reese witherspoonand even larger than life Anthony Hopkins By becoming active at the intersection of film and NFTs, interest in the new and burgeoning sector of the NFT market is steadily increasing.

Beyond household names, though, possibly the best use case for financing a movie via NFT comes from being a pioneer. photographer and filmmaker Julie Pacino. A director who had already firmly planted herself in the Web3 ecosystem, she decided to finance her next feature film “I Live Here Now” not through traditional channels, but by merging her passions into an NFT project.

with your project inn keepersPacino launched a collection of 3,356 photos captured during the testing process i live here now. And, as if just to add more substance to their efforts, shortly after the fall of NFT, the prominent independent film distribution company Utopia joined Pacino to help produce his feature film.

Of course, Pacino isn’t the only one looking to finance a movie with NFTs. Just a few months after Keepers of the Inn began circulating, yes theory announced plans to release a 10,226-piece NFT collection that would allow fans to partner with them on a budding cinematic adventure.

Focused on an impossible journey to complete the first long-distance triathlon in Antarctica, ice man movie easily caught the attention of the NFT community. Yes Theory had cemented its reputation for unique and unorthodox efforts, and this allowed the American digital media brand to consider NFTs rather than agree to a $1.25 million production run to complete The Iceman. In particular, this was only a small surprise to his community.

Even beyond independent films and documentaries, production studios of various sizes have also begun to claim the power of NFTs. Perhaps having seen the growing NFT-driven content market since the I like Yuga Labs Y scrawlRooftop Production and Karlab Studio (the masterminds behind Dance and Despicable Me 2 and 3) have set out to change the way movies are made.

With PLUSH, a French film to be released sometime in 2023, the two aforementioned production companies will harness not only the power of NFTs, but also that of the community to finance and create an animated film. Intending to create a 50,000-piece collection, the creators of PLUSH aim to make whoever collects their tokens a co-producer who, in turn, will receive a portion of the film’s profits, access to special screenings and more.

PLUSH’s collector incentives are certainly unique, but they exist as part of a common thread in NFT’s movie funding efforts. In other words, NFTs are not simply one-time transactions. Unlike other traditional financing methods, NFTs challenge the status quo of the provider/consumer relationship.

What’s most intriguing is that NFT-powered movies can engage with their audiences in ways never thought possible, often rewarding viewers, opening up communication directly to target audiences, and more.

Why leave traditional funding methods like Kickstarter?

Fundraising runs deep in the cryptocurrency industry. Traceable to The ICO craze of 2017, crowdfunding has long been a primary use of blockchain technology. Today, instead of coin offerings, Web3 companies struggling to launch a funding round regularly turn to NFTs.

Traditional crypto funding is still definitely a thing, but as the NFT ecosystem continues to grow, a wider variety of creative studios and entertainment companies are supporting themselves by launching NFT collections. And why shouldn’t they? If you’re struggling to ship products in a Web3 marketplace, why not use Web3 tools?

Beyond Web3 or digital native companies, creatives of all kinds are designing business plans in favor of NFTs as their primary source of revenue. But what incentives do independent film projects have to leave Kickstarter for NFTs?

First of all, NFT projects have the potential to make a lot of money in a short time. Success stories of “such and such running out in minutes” or “this and that made $1 million through secondary sales in one day” have continued to motivate creators to accelerate their NFT collections.

NFTs also allow creators to maintain authority over their projects. As with The Iceman, Yes Theory expressly dictated that NFT’s efforts would help ensure that the team behind the death-defying project would retain creative control of the film.

Iceman Project/Yes Theory

Since project teams can consolidate control and retain rights, they can also transfer this power to their fan base. By adding a participatory element to creative direction, as well as receiving business licenses and profit kickbacks, collectors can become a real functional part of film projects.

But if the more financially inclined prospects aren’t enough to entice filmmakers to reconsider NFTs, the community aspect demands attention. Let’s face it, NFTs are great for boosting a community. We’ve seen it over and over again generative avatar (PFP) projects. While some opt for free and open communities, NFTs can easily act when membership moves to an exclusive community, further driving demand.

But better yet, the community and the fan base of a project are the same. While these communities are often focused on PFPs or play-to-win game collections, artists, photographers, and filmmakers have also found ongoing success by corralling their own communities into one central place, usually Discord.

One such creator that has been successful in the community building aspect of NFTs is miguel faus. Having entered the NFT space with the intention of becoming an active part of the NFT community, it seems Faus found it easy to amass a fan base.

However, Faus is more than just a collector of NFTs and an advocate for blockchain technology: he is also a noted director and filmmaker. Faus is seen as a member of the NFT community on Web3, which helps explain why his film project puff has already gained significant organic traction. On this development, he said that he had raised more than $650,000 of his $950,000 budget for puff through NFT sales, in a interview with Cointelegraph.

Of course, Faus’s successful experience with NFTs is not universal. Sure, as a filmmaker he’s had years honing his craft, which is no doubt a big part of why he’s gained notoriety as a trusted creator in the NFT space. But the fact that he was able to sidestep the many pitfalls of NFT crowdfunding may be Web3’s biggest claim to fame.

The Pitfalls of NFT Crowdfunding

For better or worse, NFTs tend to present creatives with a kind of shiny object syndrome. Seen as the “hot new thing”, organizations can and do get lost in the hype cycles, not really understanding the implications of their entry into the NFT ecosystem when they launch a Web3 crowdfund.

Some find resounding success, while others fall short of even their most secretive goals. Perhaps this is due in part to the lack of precursors. There is no solid plan to build a lasting NFT. This means that would-be NFT moguls need to take the warnings seriously, so that they can avoid the mistakes of those who came before them.

It is of the utmost importance that creators and businesses do their due diligence when launching an NFT project. Faus spent months researching NFTs and insinuating himself into the community before launching an NFT project into his virtual lap.

Many celebrities have attempted to enter the NFT space without testing the waters. And most of the time it’s bite them again, and are seen as nothing more than money-hungry salesmen for cash. Consequently, aligning yourself with your potential collectors is key, especially on Web3 where trust is sometimes in short supply. Always remember that launching an NFT project is as much about money as it is about telling the relationship story, so it won’t hurt to prepare for the adventure.