FILMGRID – Decentralization in The Movie Industry Guarantees Freedom of The Art.

INTRODUCTION

Technology is evolving each day and blockchain is attracting more and more curious minds into the scene each day. Each and every industry is now being positively influenced by the blockchain technology, thanks to its decentralized, immutable nature.

Blockchain, as a decentralized digital ledger, is a way to verify and record each and every transaction over an encrypted, secure platform. It provides businesses with much-needed transparency. Blockchain technology aims to reduce transactional friction by democratizing oversight over digital assets.Some of the industry verticals which have embraced blockchain are healthcare, supply chain, manufacturing, transportation, banking and finance, government agencies, real estate, entertainment and much more.

Of these, this article will throw light on the ways in which blockchain helps the film industry overcome the challenges it faces.In the 21st century, the film industry is immensely benefited by the blockchain technology as it supports the global network of the audience, distributors, and content producers.

It provides a great opportunity for all the stakeholders of the film industry comprising of small and independent producers, traditional distributors, modern-day internet-based content streaming platforms, and global studio powerhouses. Lets take a look at a revolutionary platform FILMGRID an ideological project, seeking to create a business redundant platform that provides a fair innovative alternative to movie business; removing intermediaries from the creative and producing processes.

ABOUT FILMGRID

Filmgrid is an ideological project, seeking to create a business redundant platform that provides a fair innovative alternative to movie business; removing intermediaries from the creative and producing processes.Filmgrid is a peer-to-peer platform for commerce, streaming and financing of independent films and series over the Internet. Of decentralized nature, removes all movie theaters and film distribution companies as intermediaries, allowing a fair distribution of profits among the film’s creators, which at the same time allows for a reduction to the cost of the offer to the public.

Blockchain Architecture

During the period the DApp lives in the Etherum Network, we will be developing Filmgrid Blockchain, an Ethereum fork, on which the consensus algorithm Proof Of Work (PoW) will be changed to the consensus algorithm Proof of Elapsed Time (PoET), turning it into a Permissioned Blockchain. This way, this Blockchain’s need for miners is eliminated as the computing power is provided by the Filmgrid peers network.Every device that runs Filmgrid’s DApp is a potential source of computing power.

The PoET algorithm gives the opportunity to do processing in the backend of the device, randomly chosen, with a low power consumption while watching a movie. Users will have the option to enable or disable this function at will.Filmgrid will provide server power for certain functions of the DApp and the off-chain interconnections, such as the video files retrieving or social network activity.

A KYC module will also be implemented, in order to differentiate the type of user in the platform, the more faculties within the platform, the more information is requiered.Filmgrid will provide server power for certain functions of the DApp and the off-chain interconnections, such as the video files retrieving or social network activity.

A KYC module will also be implemented, in order to differentiate the type of user in the platform, the more faculties within the platform, the more information is required.

The application will offer all the services needed for this to be integral reality:

The Billboard

A movie marketplace where creative users may offer their movies, and viewer users can buy them and stream them.

The Pitchboard

A podium where film projects can seek funding either by obtaining it from the Filmgrid’s production fund, pre-sales or collective production.

The Critique BayA

social network environment that promotes the connectivity between all the users and the spread of ideas.

Filmgrid will use the power of blockchain technology to manage transactions and hosting the smart contracts that will secure funds, voting, and other important aspects that make Filmgrid unique.

Fair Trade Commerce

The whole point is to get here. It is well known that as many big industries, the movie business is far from being fair, FILMGRID constantly hear about movies making millions of dollars in the box office, but what we don’t hear about is that money remain in the intermediary’s pockets.

Not to mention the shameless product placement movies are put through.In a traditional Hollywood-like business model, income is produce with the sale of theater tickets, digital and physical video copies, licensing to SVOD services and others. The typical scenario for profit distribution will include a Recoupment Waterfall, an accounting technique designed to provide control to the middlemen, hence the manipulation of profit.

For a movie with a hypothetical income of 101,473,573.86 USD, it would look much like this:

It takes a few years for the recoupment to be completed, the producers pool is the last to see any income. The producers pool is made not only by producers, but also by some creatives that negotiate a percentage of revenue, such as directors, writers, actors and others.Every deal is unique for each movie, it depends in the names behind the project, but it usually respects the presented figures.

Disruption

FILMGRID wanted to disrupt the industry?

FILMGRID meant everything about it.

FILMGRID come up with an innovative business model, cutting out intermediaries, aiming for the moviemaker to be the one who make the most profit.

In the proposed business model, FILMGRID have three income sources within the same platform: Premiere sale, Screening sale and Home Cinema sale.In either case, Creative Users members of the Creative Team begin to receive income from the first sale. The decentralized application and the smart contracts will take care of all the automated operations and income distribution, respecting the configuration from the team registration.FILMGRID have now the opportunity to offer the users, international movies at an accessible price for almost anyone; and at the same time, a fair alternative to movie makers.

The suggested prices for each sale option are:

PREMIERE => 2.85 USD

SCREENING => 1.9 USD

HOME CINEMA TICKET => .56 USD

With these prices and using the types of income of the typical scenario, we can run our hypothetical case, for the same movie, using Filmgrid.

Even though the total income was dramatically less than in a typical scenario, the revenue received by the Creative Market was bigger.

About The Filmpass Token

Filmgrid’s utility token, Filmpass (FILM), is designed to be the means of payment for buying and renting movies and series episodes within the platform.

Token Details

1. Standard => ERC20

2. Name => Filmpass

3. Ticker => FILM

4. Decimals => 18Max.

5. Cap => 1,000,000,000 Tokens

Contract => 0xdadfd3814684a3a08a001500a98eef74f4ac1712

Token Distribution

The FILM token distribution consists of four sales, each one unique and oriented for different markets. Out of the 1 billion FILM tokens, 800 million will be distributed in total; 200 million will be kept to be distributed among Filmgrid and the founding team.