“An Irish Goodbye” won the Academy Award for Best Live-Action Short Film this year. The work was done by FIrst Flights, a “Film3” company that makes movies through crowdfunding.
The film was produced before the company introduced NFTs, but the company is fully committed to Web3, as evidenced by its recent funding round for its upcoming short film.
data don’t lie
NFTs have become well-known outside of the cryptocurrency industry, being recognized by far more people than industry insiders think. However, Hollywood is just beginning to explore the possibilities of blockchain technology and Web3. It is important to recognize that there is room for further progress ahead.
NFTs create a unique one-to-one relationship between buyers and issuers, helping build communities without relying on multiple vendors. Businesses have come to understand the power of community over the last few years, but have struggled to quantify its ROI.
It’s often said that “data doesn’t lie,” and at least that’s true when it comes to the success of the entertainment industry. Many people think that 1000 loyal fans are enough to be successful, but few get really useful data.
While working at video distribution site Vimeo, I gained valuable insight into the importance of community when it comes to user acquisition, audience base building, and video distribution. At the time, Vimeo had about 1,000 channels and about 3.6 million subscribers.
Niche content and community
Through research, we’ve found that mass channels that appeal to a broader audience are more likely to lose subscribers. The average churn rate was 28%.
Mass streaming channels also had a low lifetime value per user, around $21.
Meanwhile, community-focused streaming channels focused on specific niche subjects had a much lower churn rate of 12.7% and a lifetime value of $50.
Niche channels also have higher engagement rates, with an average viewing time of 506 minutes. Mass entertainment channels, meanwhile, had just 73 minutes. Moreover, subscription fee hikes had no impact on churn rates for niche channels, but churn rates for general entertainment channels spiked.
These data confirm the powerful impact of community engagement and underscore the importance of community building for creators, especially those with niche content.
Niche content represents communities tailored to the interests and needs of specific audiences. Similarly, independent filmmakers creating niche content can connect with audiences who share their creative vision and values and build their own communities around their work.
A turning point in filmmaking
As the film industry leverages Web3 technology to create communities and monetize niche content, creators have unprecedented leverage over big distributors and distributors.
Web3 technology helps filmmakers overcome major challenges such as funding, intellectual property protection and audience engagement. Armed with such tools, creators will be able to build leverage in today’s streaming race like never before.
Photographer and filmmaker Julie Pacin faced difficulties in financing her unconventional film I Live Here Now. Refusing to give up on her, she decided to finance her through NFT issuance. The attempt was a great success. Pacino was the first to fully finance a movie with an NFT.
The nonprofit Decentralized Pictures announced Miguel Faus as the first-ever winner of the $100,000 Andrews/Bernard Financing Award supported by blockchain technology at the Sundance Film Festival. This makes Faus’ film Calladita the first European film to be entirely funded by the NFT strategy.
Founder of creative studio The Squad is the driving force behind the ‘Film3’ movement, an NFT-led initiative that aims to transform the film industry by providing a fairer platform for those underrepresented. The leader is Jordan Bayne.
so that creators can create
We finally have the technology that has the potential to transform the way communities interact and participate in the economy by empowering creators, fostering collaboration and innovation, and building a more equitable economy. I put it in.
While NFTs are still a relatively new concept, their impact on communities and economies is already beginning to be felt, with creators benefiting directly from their work and resolving power imbalances that have existed in the creative industry.
As the film industry faces difficulties, including fears of writers’ strikes, more and more creators will seek new ways to entertain and generate income. The rise of Web3 technology and NFTs offers a perfect alternative to traditional content production and distribution models, giving independent filmmakers a more direct relationship with their audience and more control over their work. It can be so.
With the film industry at a crossroads, it is important to embrace these new technologies and explore their potential to enable them to build more meaningful and sustainable relationships with their audiences.
A new era in filmmaking is upon us.
Supporting creators in that process leads to new experiences that fit our passion.
Mr. Andrea Berry: Head of business development at Theta Labs, a distributed video distribution network.
｜Translation and editing: Akiko Yamaguchi, Takayuki Masuda
｜ Original: NFTs Are the Ultimate Disruptor of Hollywood’s Entertainment Status Quo