Will movies be funded by audiences and fans of filmmakers worldwide? SSFF & ASIA think so, and that’s why.
Short Shorts Film Festival & Asia is constantly supporting up-and-coming filmmakers all over the world. With the changing climate of the cryptocurrency era, SSFF & ASIA wants to break down how this shift in funding can benefit those looking to break into the industry.
SSFF & ASIA teamed up with Visual Voices Inc. to launch their latest project, NFT Global Cinema Market, to educate filmmakers about the dark secrets and expectations of cryptocurrency. The changing landscape is something all filmmakers and fans of cinema should be aware of, as it will more than likely be the future of filmmaking.
At the webinar “NFT and Cinema”, festival president Tetsuya Bessho was joined by Taichi (Director of EDLEAD) and Takahito Kagami (CEO of CoinPost Co., Ltd.) to talk about new filmmaking methods in the Web 3.0 era.
You can watch the full discussion on blockchain and NFT technology in modern filmmaking below, and we’ll highlight our takeaways from it.
The Internet has made it easier for everyone to consume media and content. Every day, more and more content is uploaded to Instagram, TikTok and YouTube, while filmmakers start to feel frustrated by time-consuming and seemingly never-ending film production.
Speaking about the current state of film production, Kagami said, “When something is difficult to make, we usually expect better results because of the time and money we spend. By connecting the creators and their fans, it will make the production process easier and will cast light [on] many creators.”
Taichi said, “Until now, there was no verbalization of the process of filmmaking, and Japan tends not to speak clearly. But when this generation changes and uses NFT, it is possible to optimize production.”
The industry is going through a major shift as cryptocurrency and online media become more and more dominant in our world. The film industry has always struggled to keep up with the times, and director Taichi believes it is time to make the industry more flexible for upcoming filmmakers.
“It is the question of how we will adapt and change [the industry] to the 21st century, and how NFTs come into it all, Bessho said during the film festival. One way to make production easier for filmmakers is through crowdfunding or selling NFTs.
Tetsuta Bessho at SSFF & ASIA online closing seminar NFT×CinemaCredit: With permission from SSFF & ASIA
Crowdfunding vs NFTs
Until recently, films had to be traded as copyrighted works or financed entirely from the filmmakers’ pockets. But crowdfunding and NFTs give the artist the power to get their films funded by the public and backers.
It’s important to understand the differences between crowdfunding and NFTs when monetizing your production.
According to Kagami, “Crowdfunding is a contract between individuals and films. Make it a sell-and-buy contract.”
Crowdfunding is an indie filmmaker’s typical way of financing a film, but it’s usually limited to a local community. Unlike crowdfunding, NFTs can be sold globally, allowing filmmakers to connect and interact with a wider audience. NFTs belong to a semi-anonymous community of supporters.
“Individuals can participate in problems and issues while making films together,” Kagami said. “The leadership side can make operational changes that directly and continuously provide and receive benefits.”
Kagami said of selling NFTs to fund a project, “When you co-produce an animation, even if the audience rating for the first series wasn’t good, knowing that there are fans will allow them to continue making seasons.”
Credit: With permission from SSFF & ASIA
How do NFTs change the manufacturing process?
Funding is a big problem when it comes to filmmaking. It is one of the most difficult processes of pre-production. Investors will hesitate to give a lot of money to a project if they don’t think they will get the money back. But NFTs can help eliminate some of the stress of finding funding that many indie filmmakers are all too familiar with.
“With NFT, it is possible to know the people who have participated from the beginning, so when there is a large profit from the box office, it is possible to set up a large return to early investors,” Kagami said.
There is a huge market for those who are interested in NFTs and want to help filmmakers without committing to investing a large amount of money.
“Films are made by people. By using NFT technology and its techniques, each artist can be valued more,” said Taichi. “For example, the cycle of film directors having to find sponsors to finance their films will be broken down.”
Since NFTs can be sold to anyone worldwide, the market for investors is ultimately larger. Kagami explained, “Centralized managers are absolutely necessary for filmmaking, but creators want to try more things and search for like-minded people. I think it will be important to create an environment where we can network.”
The future of filmmaking involves audiences participating in the creation of work they want to see. Studio executives will not have as much power over what is made or not made because the funding comes from the public.
The four characteristics of NFTs
When considering creating an NFT to fund your project, Kagami said there are four characteristics to keep in mind. These four characteristics are:
Uniqueness – NFT should be distinguishable from other digital data.
Negotiability – ownership becomes clear and global trade becomes possible.
Interoperability – enables the use of content across different services.
Programmability – set automatic rules to create a smart contract.
The investors in a film’s production and the community interested in supporting filmmaking have great value in the future of the industry. Kagami believes that the unique innovations in community management are based on the creator’s own rules for NFT.
Taichi said at the end of the panel, “There is a chance for every artist to become famous.”
Bessho added, “You can be the player to watch,” by purchasing the artist’s NFT.
You can check out The Rhetoric Starproject to learn more about creating NFTs to fund your future projects. This is a new adventure that everyone is learning to navigate together, but don’t be afraid to take that risk and start the conversation in your film community.
