From Reels to Blocks: How Blockchain is Reshaping Production Companies

Lights, Camera, Blockchain! The New Era of Film Production

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When Greenfish was first launched in 2021, one of our priority missions was to utilise next-generation technologies to transform the way Production Companies store, distribute and monetise their content. The objective, to enable those who create content to retain some level of control.

For over two years, Greenfish has been in a deep R&D phase, deciphering how the blockchain and Web3 technologies could enable Content Creators and Owners to secure and control their IP value, across the media ecosystem, for the lifetime of the content.

The world of content production has always been dynamic, teeming with creativity, excitement, and continual evolution. Yet, it's no secret that the industry is laden with challenges, including securing intellectual property, managing digital rights, ensuring fair royalty distribution, and maintaining efficient production workflows. The industry's transition to digital media has further compounded these challenges, giving rise to issues like piracy and complex global distribution.

But there's a silver lining that not many Production Companies have fully been introduced to yet: blockchain technology.

Blockchain technology is best known as the underpinning mechanism for cryptocurrencies like Bitcoin. The noise over the past year has focused on NFTs and DAOs. However, blockchain and Web3’s potential applications extend far beyond digital currencies, particularly in the media production industry.

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Here's why it can be transformative:

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1. Enhanced Digital Rights Management

The conventional methods of managing and protecting digital rights are susceptible to errors, fraud, and inefficiencies due to their reliance on intermediaries and manual processes. Blockchain's transparent, immutable, and decentralised nature enables production companies to create a secure digital rights management (DRM) system, providing a clear trail of ownership, usage, and rights transfers. With the use of smart contracts, rights can be automatically transferred and payments can be made, reducing administrative overhead and potential disputes.

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2. Protection Against Piracy

Piracy continues to plague the media industry, posing a significant risk to production companies' revenues. By tokenizing content, blockchain allows for the creation of unique, verifiable digital assets, thus making piracy more difficult. Tokenized content can be traced, and its ownership verified, making unauthorised distribution easily identifiable. This method could revolutionise anti-piracy measures, preserving the value of digital content.

Utilising a new blockchain protocol called Eluv.io for media storage and distribution, enables immediate, real-time, hyper-efficient global streaming capabilities, solving many of the piracy challenges for securing content across digital distribution.

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3. Automated Royalties and Resale Rights

The traditional process of distributing royalties is often time-consuming and lacks transparency. Blockchain offers a solution via programmable smart contracts that automatically distribute royalties each time a piece of content is used or resold. This ensures that all stakeholders are compensated accurately and promptly for their contributions, fostering a more equitable ecosystem.

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4. Streamlined Production Workflow

Production workflows involve various stakeholders and phases, each having unique needs and objectives. Coordinating these elements can be a logistical nightmare. Blockchain offers an answer with its ability to provide a transparent, tamper-proof ledger for project timelines, contracts, budgeting, and more. This level of transparency and accountability can significantly enhance workflow efficiency.

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5. Unlocking New Revenue Streams

Production companies can tokenize their projects on the blockchain, selling tokens that represent ownership shares or future profit participation. This innovative approach allows for the unlocking of new revenue streams, and even the crowd-funding of projects. Furthermore, it enables fans to become investors in their favourite content, driving engagement and fostering a closer connection between creators and consumers.

For those Production companies not keen on sharing ownerships amongst their communities, Greenfish has developed a Framework to enable Content Owners to decide how they wish to monetise their content (both archive and current content), enabled through a combination of blockchain technologies to ensure real-time, real-money (FIAT) payments can flow through the Framework, directly into the digital wallet accounts as dictated by deal terms integrated into Smart Contracts, as defined by the owners of each individual piece of content.

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6. Facilitating Global Distribution

The global distribution of digital content involves complex licensing agreements and international banking. Blockchain can simplify this process through its decentralised nature and support for cryptocurrencies. This allows production companies to distribute their content globally and receive payments from anywhere in the world, bypassing traditional banking systems, and reducing transaction costs.

At the current juncture, the production industry is at an inflection point. The COVID-19 pandemic has accelerated the shift towards digital content consumption, leading to a surge in demand for digital content.

Streaming platforms like Netflix, Amazon Prime Video, Disney+, and DAZN have been extremely active in acquiring production company content, acquiring exclusive rights to stream content produced by external production companies, funding original productions, using in-house production units or collaborate with external production companies or acquiring Production Companies, a more direct route giving them them a vast library of existing content to stream but also the infrastructure and capabilities to create more original content.

These strategies reflect a general trend in the industry towards vertical integration, where streaming platforms are seeking to control every aspect of the value chain, from production to distribution. By doing this, they can have more control over their content, reduce costs, and differentiate themselves in a competitive market.

This high-stakes, competitive environment has led to what's been dubbed the "streaming wars," with platforms vying to secure the best content and talent. With more players like Apple TV+, HBO Max, and Peacock entering the market, this trend is set to continue, potentially driving up the cost of content even further.

Yet, the challenges associated with digital content production and distribution persist. Blockchain technology presents an opportunity for production companies to tackle these challenges head-on.

Embracing blockchain technology can provide production companies with enhanced control and security over their intellectual property, more efficient and transparent workflows, and new avenues for revenue and global distribution. By doing so, they can foster a more sustainable and equitable ecosystem for all stakeholders.

The future is here, and for production companies, it's built on the blockchain. The question is, are you ready to embrace it?

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