How Blockchain Continues to Reshape the Film Industry

The film industry has been making significant strides largely because it is accustomed to evolution. As a result, the Business Research Company recently projected that the global film and video market could reach $328.49 billion by the end of 2025, representing a 6.5% growth from 2024’s $308.47 billion. From film discs to the rise of streaming giants, each shift has brought significant changes to this sector.

Interestingly, blockchain is also making waves, offering solutions for financing, distribution and content protection. This is a perfect example of how perceptions surrounding crypto are quickly changing. And you don’t have to look far to see how far-reaching this influence has become. Even mainstream conversations about the Bitcoin price USD reflect how digital assets are no longer confined to niche corners of finance.

These assets have entered pop culture, business strategies and now creative economies. For film filmmakers, this shift introduces a new way of connecting with fans, tracking royalties and funding projects. The beauty is that the blockchain-film crossover is more than theoretical because it’s already driving real projects. Read on to discover just how exactly this is happening.

Democratizing film funding through tokenization

For a long time, financing movies has been complex. It often involves content creators relying upon production companies and wealthy investors who expect creative control and large returns. This can mean giving up a piece of your vision just to get a green light. Remember, creating just one major Hollywood production is not a walk in the park.

According to Nashville Film Institute, you may need, on average, $100-$150 million to make a feature film. That can be expensive for small and medium-sized studios. However, with blockchain, these organizations can take advantage of Initial Coin Offerings (ICOs) to raise funds in ways that were never possible. An ICO is a type of fundraising where a new cryptocurrency is offered to the public in exchange for cryptocurrencies like Bitcoin, Ether, or even a fiat currency.

Think of it as a crowdfunding event for blockchain-based projects, where investors buy digital tokens, often hoping for future value within the project’s ecosystem. This way, it becomes possible for your audience to invest in movies they believe in, while you retain more control.

Take the case of the Happiest Place on Earth drama film, for instance. Directed by Greg  Yaitanes and produced by Blumhouse, this movie is about a dysfunctional family that reunites and plans a trip to Disney World to help them confront their past and present struggles. It was financed through an ICO on the Foundation blockchain platform, allowing investors to purchase NFTs representing their film revenue shares.

Transparent royalty tracking and revenue sharing

Every content creator can agree that one of their biggest frustrations is not getting paid fairly and on time. Money trickles down through several layers, from distributors to production houses to agents, and by the time it reaches the creators, it’s often reduced. And this is actually why a good number of creatives have more than one single source of income.

In one of their Getting Real conferences in 2024, the International Documentary Association (IDA) noted that only about three people out of 80 could sustain themselves solely on income from their own films. This could perhaps be the reason why technologies that improve the royalty collection process, like blockchain, are receiving a massive welcome.

Blockchain improves royalty tracking by taking advantage of smart contracts, which self-execute once predefined conditions are met. Once a movie generates revenue, such as streaming rentals, those funds are split and transferred instantly to everyone involved without going through intermediaries. Given this improved efficiency, blockchains with robust smart contract abilities like Ethereum have been attracting many content creators.

Fan engagement and ownership through NFTs

Fan culture has been part of the film industry since time immemorial. In the early days of cinema, fans would gather to talk about their favorite films and exchange their opinions and thoughts with others. This was important because it helped advance movies to new audiences.

But with the internet and social media rise, things have changed, and fan culture has gone mainstream. Hashtags, for example, have become a common way for fans to track discussions about their favorite films and franchises. The more reactions your movie receives on social media platforms, the more likely it is to become successful. But this is not the only way fans want to connect with the films they love.

Thanks to blockchain technology, fans can now own part of the creative process and even profit from it. This is where non-fungible tokens or NFTs come in. They are unique digital certificates representing ownership of a one-of-a-kind asset, like exclusive behind-the-scenes footage, stored on the chain. Unlike interchangeable crypto assets, each NFT is distinct and cannot be exchanged directly for another.

This is why studios and creators are turning to these tokens to build communities. Quentin Tarantino made headlines in 2021 when he announced plans to release seven unseen scenes from Pulp Fiction as NFTs. The NFTs were unique because they had content viewable only by their owners.

At a time when filmmakers are seeking efficient compensation and effective ways to connect with their fans, many could turn to blockchain to get started. Through its decentralization, even fans can participate in the entire creative process, providing good grounds for blockchain’s further spread in the film industry.