The entertainment industry is rife with profits, attracting industry giants like Amazon, Netflix, and other streaming services.
There are many opportunities for the use of cryptocurrency in industries with so much consumer demand, including the movie, video game, theatre, and music industries.
Cryptocurrency has revolutionized the video game industry by introducing NFT collectibles and rewards.
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| Tokenization Explained: Will Crypto Revolutionize the Entertainment Industry?: eAskme |
In the online casino industry, cryptocurrency makes it easier to process payments with fast transactions and low fees.
Yet, although profits are visible in the entertainment industry, not many individuals are willing to invest in it.
While there are numerous reasons for this, a major reason boils down to transparency.
Hollywood, the music industry, and other realms of entertainment have a history of being vague with accounting.
Money in these industries seems to be going nowhere, and artists are not paid legal dues for their jobs. However, with the advent of cryptocurrency and the emergence of tokenization, all of this is about to change.
This article will explore tokenization and answer the question of whether it can revolutionize entertainment.
What Is Tokenization?
Tokenization involves transferring the rights of ownership of an asset to a digital form.
Simply put, it's the process of creating recognized digital ownership of a real-world asset, such as cars, houses, etc.
One of the most popular forms of tokenization today is Non-Fungible Tokens (NFTs).
Tokenization is also popular because it can split the ownership rights of an asset. This means that many people can jointly own an asset that cannot be split, such as houses, cars, etc.
While this might look like owning shares, it goes far beyond that.
The most significant difference between owning shares and tokenization is that tokenization doesn’t need an intermediary.
Since creating tokens happens on the blockchain, it doesn’t need the help of any banks or the government.
Another difference is the flexibility of tokenization, which isn’t limited to physical assets and funds. Abstract concepts like time can also be tokenized.
Tokenization is so broad that a popular saying is ‘anything can be tokenized.’
Will Tokenization Revolutionize the Entertainment Industry?
To understand whether tokenization will revolutionize the entertainment industry, you only need to consider its benefits.
If this innovation's benefits to the entertainment industry are worth it, it will change the industry.
Some of the apparent benefits of tokenization are outlined below:
Transparency:
For an industry where the money looks like it only flows between very few hands, tokenization will change all that.
Since tokens work with blockchain technology, you can expect transparency since a blockchain is a public ledger.
This means that you can see where the money goes. The blockchain will record if movie funds are used to prepare special effects.
The public will also be aware if part of the movie funds is used to finance adverts.
Video game developers can also get fans to fund a video game through tokens.
When this occurs, the transparency of the blockchain will make fans aware of what the developers are doing with their money.
They’ll be able to tell if their funds are being used judiciously or if they’re being wasted.
Fans Can Get Involved:
Many movie and video game franchises are dying today because fans are going away.
This could result in the producers moving in a different direction from the fan’s wishes.
It could also come from fans losing interest in the new movie or video game that’s been produced.
Either way, the franchise will die since the fans are no longer involved.
However, things are different when you tokenize a new movie or video game and get fans to purchase those tokens.
When this occurs, the fans want to know what’s going on with their investment.
Besides bringing the fans closer, it’s an opportunity to get them involved in the production process.
Yes, tokenization allows fans to finally have a say in how things will turn out.
So, you can say goodbye to movies or video games that end in ways that don’t make sense.
Investor Funds Can Easily Flow:
The movie industry is one that’s dominated by a few corporate entities.
These entities keep a monopoly on the industry, so no one else can have a share of the profits.
So, investors willing to ignore this industry's obscure fund usage couldn’t join even if they wanted to.
With tokenization, these investors can easily fund whatever movies they wish.
Instead of only a few major companies and studios getting the right to fund certain movies, anyone can do that.
Sometimes, great movie or video game ideas are shelved because the major companies or investors don’t want to invest in them.
This could be sequels to a game, a movie series, or even an entirely new movie or video game series.
In the end, these major companies are just after the money.
So, if there’s not much money to be gotten from a movie sequel or a new video game, the idea dies.
Whether the movie actors or video game developers are interested in it, the innovative idea would die without funds.
However, things can be different when fans are allowed to get involved. These movie or video game companies can sell their tokens, and the fans can happily invest in them.
This can allow many great movie or video game ideas to come to life.
Have There Been Any Movements Regarding Tokenisation?
Tokenization has many benefits, and many movie producers have seen this.
So, some of them have already begun investing in it.
One such individual is popular movie actor, producer, and director, Wesley Snipes. Snipes has partnered with Liechtenstein Cryptoassets Exchange (LCX) to tokenize a movie.
This tokenization fund is known as the Daywalker Movie Fund (DMF), worth $25 million.
The DMF will allow investors worldwide to invest in Wesley Snipes's production studio, Maadi House Studios. With this, investors can have a say in the movie's production.
Conclusion:
Tokenization is an idea that many investors and producers are looking forward to.
Its presence allows these individuals to circumvent the lack of financial transparency that plagues the entertainment industry.
It also lets fans get involved in producing their favorite movies and games.
So, if you’re wondering if tokenization can revolutionize the entertainment industry, then yes, it can.
Many people are looking forward to these changes already.
If you still have any question, feel free to ask me via comments.
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