As streaming becomes king, blockchain can help filmmakers retain control

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The films and TV shows we watch are now controlled by streaming platforms. TV networks and Hollywood studios are buckling up for a mighty streaming battle where exclusive content is key.

Streaming deals with producers typically involve fixed fees and a notorious business model where no viewing data is shared. This means reaping limited benefits even if a show is a big hit and blindly planning the next show without data. In a world dominated by exclusive streaming, the question for creators is: which platform do you choose? Then, depending on your choice, can you still build a big global franchise given these conditions?

In the short term, as long as producers get their project financed and have the creative freedom to realize their vision, betting all their chips on one platform may not matter. However, in the long term, the warning signs are clear: creators of original content may become overdependent on the new media oligarchs.

Where should producers pin their hopes and dreams? For answers, we look to the next wave of technology: blockchain.

Blockchain’s impact

Blockchain will bring about a paradigm shift in how the economics are shared and negotiated in media. The concept—a global peer-to-peer database that cannot be hacked—is a fundamental game changer.

While the obvious application of blockchain is virtual currency, the implications are much wider. It works for any industry where centralized platforms act as gatekeepers for data, impose onerous terms, or reduce efficiencies.

We can’t expect this evolution to happen overnight. Like the early days of the internet, the UI/UX experience today is still poor. Scalability is still not optimal. However, like the early adopters of the internet, filmmakers who educate themselves and embrace change will be strongly positioned for the future.

Blockchain will give filmmakers more control over their destiny in the following ways:

Flexible financing

Filmmakers can finance their projects by selling tokens to investors and fans in return for a share of net profit. This will reduce the need to lean on platforms for funding, giving producers better negotiating leverage and a cost-efficient alternative to equity.

Clear ownership records

On the blockchain, producers can make an immutable record of who collaborated and contributed to a project. Based on the contributions, payments can be structured to be fair, instant, and transparent. This will lead to less litigation disputes over time.

New revenue streams