Hollywood is investing heavily in bitcoins whether it’s Fox Entertainment has announced a $100 million creator fund for NFT space or Legendary Entertainment launched two new exclusive NFT collections to sell NFTs related to Godzilla vs. Kong in which the two monsters are fighting.
In addition to providing a new funding source, bitcoin is also changing how the entertainment industry does business. For example, many companies are now using blockchain technology to create new platforms for content distribution.
It is an ideal platform for content distribution, as it eliminates the need for intermediaries such as distributors or content platforms.
Previously, films were distributed through a reasonably centralized system in which a few major studios controlled most releases. However, this is changing with the advent of digital distribution platforms such as BitTorrent and VOD services like Netflix.
These platforms are much more decentralized, allowing filmmakers to release their films directly to audiences without going through a studio. In addition, it gives filmmakers much more control over their work, bypassing traditional marketing and distribution channels.
Earlier every assumed that the Hollywood industry and Bitcoin may seem like two worlds that would never intersect. However, the rise of Bitcoin and other cryptocurrencies has begun to influence how the entertainment industry does business you can learn with BitQS.
Smart contracts are already being used to finance other projects in the entertainment industry, such as video games and music albums.
However, films are a particularly well-suited use case for this technology. It is because films typically take a long time to produce and release, during which the value of Bitcoin can fluctuate greatly. It means that investors can see a return on their investment even if the film does not do well.
Surprising Ways that Bitcoin is Influencing Hollywood
Bitcoin’s impact on Hollywood is far-reaching and unexpected. In addition to being a source of funding for new projects, digital currency is also changing how the entertainment industry does business.
One of the most significant ways that bitcoin influences Hollywood is by providing a new funding source for projects.
In 2021, “This Machine Greens: Bitcoin and the Future of Clean Energy” a documentary film became the first-ever film entirely funded with bitcoins. Similarly, Fox entertainment has announced an animation series to make on the blockchain platform in which investment would be made through a crypto fund.
In traditional financing models, studios or production companies approach investors with a project and request funding. However, with bitcoins, anyone can fund a project by investing in it directly. Viewers can also fund the movie production, which they are interested in watching in the future.
This would expand the investment horizon of Hollywood and common people would also be a part of the production. They can become active investors rather than just passive media consumers.
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Why is Bitcoin Influencing the Hollywood
First, the industry is global, and Bitcoin is a global currency that removes the barriers along with middlemen or distributors among different to get maximum outreach and profits.
Secondly, piracy remains the greatest risk to the entertainment industry. Blockchain technology guarantees secure content delivery.
The entertainment industry is often associated with luxury goods and services, which are precisely the kind of things that people are willing to pay a premium for using Bitcoin.
4 Major Cons of Bitcoin in the Hollywood Industry
#1. Bitcoin is not Legal Worldwide
Bitcoin could make it harder for Hollywood studios to accept payments from people who live in countries where the currency is not legal.
Any government that does not regulate Bitcoin, and there is no way to guarantee that it will exchange the money for goods and services.
#2. High Transaction Fee
Since there’s a high transaction fee in bitcoin transfer, can make it a costly affair in the distribution process.
#3. Highly Volatile Market
Bitcoin is a highly volatile currency as compared to any fiat currency like USD, so a single dip may lead to huge losses because the entertainment industry’s investment is very high.
#4. Untraceable Piracy Industry
Bitcoin could also make it difficult for Hollywood studios to protect their films from piracy if bitcoin is only used as currency and Hollywood doesn’t move to blockchain technology.
In that case, people may be able to use bitcoin to pay for pirated copies of movies and stay anonymous without getting tracked.
Final Wrap-up
Hollywood is one of the most influential industries globally, and its impact on popular culture is undeniable.
While there are still some challenges to overcome, such as high transaction fees and volatility, it is clear that Bitcoin has the potential to revolutionize the way the Hollywood industry does business.
With more and more businesses and individuals beginning to accept Bitcoin, it is only a matter of time before the cryptocurrency becomes mainstream.
Lastly, with the boom in NFTs, people are getting more inclined toward acquiring digital assets, which would also be transformational for the entertainment industry.
