How Filmmakers Can Monetize Their Art Using NFTs
July 9, 2022
How does streaming or distributing your film (full-length cinematic productions or shorts) via blockchain sound? Doable? Or, does it seem easier said than done? Filmmakers in the entertainment industry are keen to hop on the NFT bandwagon, either to get profit through NFTs or to mint their own NFTs, by minting their films or digital arts to the blockchain. Indeed, as a filmmaker, NFTs provide an interesting opportunity to earn massively from your works.
For instance, in 2021, digital artist, “Beeple” set a record for the most sold digital-only art at Christie’s Auction house generating about $70 million. Another sterling example is how Niels Juul, an executive producer of The Irishman, founded their NFT Studio to make the first feature film funded by minting NFT tokens.
The entertainment industry is undoubtedly evolving. Thanks to digital streaming services, many artists and filmmakers can use their creative ideas to make magic, to the sensory delight of audiences, and further, activate fans! This said, many filmmakers fail to understand the value and potential to generate profit that NFTs possess, which leads to indecisiveness as to how to integrate NFTs into what they do.
Not to worry, this article, and Umba Daima network and community, is here to lend support and shed light. We will consider how NFTs can offer monetary incentives to filmmakers.
The Problem with Digital Filmmaking and Monetization
There is a lot of top-notch film content out there, drawing audiences worldwide and keeping millions on the edges of their seats. But the film industry is a tough one. While there are tons of movies, series, and shorts being produced every year, the fact remains that filmmakers are competing with each other for funding and the attention of the masses.
It’s become infinitely easier to produce movies with the latest technology (think smartphones and low-cost computers), still, many filmmakers struggle to earn a living, despite their hard work. For instance, filmmakers are paid one cent per hour on streaming platforms like Amazon.
Another problem is ticket sales. COVID-19 had a significant impact on the entertainment industry. Many filmmakers and film companies had to suspend their blockbuster releases in the cinemas. This also affected small production houses and individual filmmakers. With the pandemic almost gone (fingers crossed), habits audiences have adjusted to remain, fewer people are returning to the cinemas to watch movies and prefer alternatively to stream them from home.
As a filmmaker who depends on ticket sales to make a profit and build a reputation, this is a massive slap in the face. Even when these movies reach the big screen, many filmmakers struggle to break even. However, NFTs can offer an avenue for filmmakers to transform their works into unique digital artforms to engage audiences and earn additional funds.
Ways Filmmakers Can Monetize Their Films via NFTs
Minted NFTs exist on a transparent, secure blockchain ledger platform. Blockchain technology has proven quite efficient despite the odds and can benefit filmmakers seeking to promote their films. Using a real-case scenario, let’s explore three (3) excellent ways filmmakers, and artists can monetize their art via NFTs.
Providing limited access to your NFT
In a bid to become an NFT filmmaker, it is essential you start small, and then scale up. For instance, you can make a 5-minute short film with an excellent blend of genres to captivate your audience. Instead of mass-producing your film; make a limited number (for example 50) of original copies as NFTs. This allows you to control the supply. One benefit of a limited supply is that you can promote demand for your work through scarcity. If you decide to price each work at, say, $1,000 on an NFT marketplace, you’ll earn $50,000 for your short film. You can learn more about how to price your NFTs here. Cool stuff! Isn’t it?
Crowdfunding utilizing NFTs
You are not a big shot in the filmmaking business yet, but with your short film release, you start to attract an audience, including those early birds who’ve supported your short film NFTs because they feel the value will rise, and those who value your work for pure artistic love. They will both be vested in you creating more minted NFT masterpieces in the future. When trying to fund your next big film project, consider some or all of these valuable tips:
- Create a fanbase where users can interact with other exciting projects you have on the way.
- Sell NFT collectibles from your short films, which help increase hype around your film projects.
- Provide limited access to social media influencers such as YouTubers with large followings in the NFT space to bring more attention to your work.
Royalty payments on sold NFTs
Many people will buy your work because it’s a unique artform. Others snatch the NFT with hopes that your work will appreciate in value over time, like a hot basketball rookie card! If you become a famous filmmaker in the next five years, the 50 people who bought your film may decide to sell their NFT at an appreciated value. If someone sells for $10,000 then they’ve made a healthy profit! While the early supporters of your digital art are raking in profits, you are also collecting royalty percentages (usually up to 10% of unique artwork sold) every time your work is sold to another party. Of course, with every sale comes more royalties.
The recent and ongoing growth of NFTs is impacting several sectors, including the entertainment industry. NFT monetization now provides avenues for artists and filmmakers to earn lucratively from their craft. You do not have to code, or make your own blockchain technology, to become crypt-active as a film creator. You can build on an existing blockchain, minting your film or art as a limited number of unique NFTs. You have the ability to control the value and demand for your unique work. Networks such as Umba Daima are here to support you on your journey to becoming a successful filmmaker.