Filmgrid's core ideal is to disrupt the movie industry in favor of the moviemaker, not the suit. Of rebel heart, its principles are the base for its business model design, decentralizing as many aspects of the movie industry as possible. The adoption of Blockchain technology will allow us to build an unstoppable application, that shares Filmgrid beliefs.
Filmgrid does not depend on a third party for production nor release decisions, it depends only and always on the users, placing the trust in the Blockchain; leaving intermediaries interests out of the equation.
And even though there are rules, no one controls it.
For those moviemakers that have made a digital movie (and/or hold the copyright for it) and want to capitalize their project, we have the Billboard, a storefront for movies of all type, length, kind and style.
It's really simple, actually.
The moviemaker registers in Filmgrid as Creative Users, if the movie is a collaborative work, the involved Creative Users must form what is called a Creative Team, then upload to the Billboard the Movie; once in display, a Viewer User buys a digital copy of the Movie, and, through the application, the Movie can be downloaded or streamed and viewed as many times as the Viewer User decides.
There is also a movie rental option for titles available in the screening mode in the "Billboard", in exchange for a “ticket”, the user obtain the right to play and watch the movie for 48 hours from the moment of payment.
If there are Creatives with a cool movie project, or a very good idea for one, they can use Filmgrid's Pitchboard to fund it. All there is to do, is upload a description, an image, giff, teaser or trailer video and a budget to participate.
It's not quite crowdfunding, yet it relies on the crowd. There are three options to do so:
This way, the project is committed only to the Viewers, and never to movie moguls.
The Production Fund management, the voting and the dispersal of funds will be secured by Smart Contracts in the Blockchain, assuring the veracity and appropriate usage of the funds; every Creative User member of the funded Creative Team can trust the platform will release their respective payment, therefore everyone can focus in making a great movie.
Developing the project Filmgrid using blockchain technology is the logical move to make, the decentralized nature of this new technology is a perfect fit for the principles/tenets behind Filmgrid. Furthermore, it can solve problems that traditional centralized technology cannot, particularly issues of censorship, intermediaries interference or trade transparency for example.
Perhaps its greatest attribute is the level of trust that it allows to generate between users. This trust is the base for the proposed business model.
With the intention of being productive as soon as possible, the first two years, business will take place on the Ethereum network, the DApp and the Smart Contracts will run on top of the blockchain. Gas costs will be cover by the platform, not the users.
Extract from the Ethereum Project web site: ethereum.org
"Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference.
These Apps run on a custom built Blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property."
During the period the DApp lives in the Etherum Network, we will be developing Filmgrid Blockchain, an Ethereum fork, on which the consensus algorithm Proof Of Work (PoW) will be changed to the consensus algorithm Proof of Elapsed Time (PoET), turning it into a Permissioned Blockchain. This way, this Blockchain’s need for miners is eliminated as the computing power is provided by the Filmgrid peers network.
Every device that runs Filmgrid's DApp is a potential source of computing power. The PoET algorithm gives the opportunity to do processing in the backend of the device, randomly chosen, with a low power consumption while watching a movie. Users will have the option to enable, disable or pause this function at will.
Filmgrid will provide server power for certain functions of the DApp and the off-chain interconnecions, such as the video files retreiving or social network activity.
A KYC module will also be implemented, in order to differentiate the type of user in the platform, the more faculties within the platform, the more information is requiered.
Smart Contracts are self-executing contracts (programs), stored on the Blockchain, which nobody controls and therefore everyone can trust.
In addition to the DApp, we will make a few core smart contracts that can provide certainty, and automation for a better customer experience. Smart Contracts that will live in the Filmgrid blockchain (but not limited to):
The Vault. Its function is to secure the Production Fund, which can only be dispersed after the results of the popular election indicates so.
Pitchboard Ballot. Assures a trustworthy Popular election when the users choose the projects to be funded.
Funds Dispersal. The funds will be delivered only according to the production plan set by the Creative Team.
Filmpass Token. Utility token that allows users early access to movies at the premiere streaming.
To provide integrity verification for movie files, we will store the data off-chain and store a hash of the data on-chain. This guarantees that the data is not being modified while protecting the blockchain from becoming bloated.
We are exploring the benefits of IPFS, to implement in the near future.
The whole point is to get here. It is well known that as many big industries, the movie business is far from being fair, we constantly hear about movies making millions of dollars in the box office, but what we don't hear about is that money remain in the intermediary’s pockets. Not to mention the shameless product placement movies are put through.
In a traditional Hollywood-like business model, income is produce with the sale of theater tickets, digital and physical video copies, licensing to SVOD services and others. The typical scenario for profit distribution will include a Recoupment Waterfall, an accounting technique designed to provide control to the middlemen, hence the manipulation of profit.
For a movie with a hypothetical income of 101,473,573.86 USD, it would look much like this:
It takes a few years for the recoupment to be completed, the producers pool is the last to see any income. The producers pool is made not only by producers, but also by some creatives that negotiate a percentage of revenue, such as directors, writers, actors and others.
Every deal is unique for each movie, it depends in the names behind the project, but it usually respects the presented figures.
Remember we mention Filmgrid wanted to disrupt the industry? We meant everything about it. We come up with an innovative business model, cutting out intermediaries, aiming for the moviemaker to be the one who make the most profit.
Now, before any greedy thoughts, let's consider that this brings the opportunity to dramatically lower down the cost for the viewer, increasing volume sales.
In our proposed business model, we have three income sources within the same platform: Premiere sale, Screening sale and Home Cinema sale.
Buy movies with filmpass during the premiere to get exclusive additional material, and always, watch them first.
Missed the Premiere? A couple of months later the regular version of the movie is back for sale at the Billboard.
If there is interest in the movie, but not into buying it, buying a ticket with filmpass gives the user 48h hours of access.
In either case, Creative Users members of the Creative Team begin to receive income from the first sale. The decentralized application and the smart contracts will take care of all the automated operations and income distribution, respecting the configuration from the team registration.
We have now the opportunity to offer the users, international movies at an accessible price for almost anyone; and at the same time, a fair alternative to movie makers. The suggested prices for each sale option are:
With these prices and using the types of income of the typical scenario, we can run our hypothetical case, for the same movie, using Filmgrid.
Even though the total income was dramatically less than in a typical scenario, the revenue received by the Creative Market was bigger.
Note. To have a better detail of the scenarios, figures and pricing methods, please read the whitepaper.
The purpose of making an Initial Coin Offer, is to finance the development of the Filmgrid platform and to gather the initial Production Fund amount that will be used by the first Creative Teams voted winners by eligible users, during the first year of operations. This fund will be protected by the smart contracts that have been described previously.
To add value to the Filmgrid experience, the user is offered to buy the scoop of the film during the premiere sale, including the additional exclusive material; then we tranfer this value to the utility token Filmpass, since premiere film can only be bought with it.
The price for a movie during the Premiere Sale will be derminated by the Creative Team, since the value of the token may fluctuate and the length of the movie will variate, an honest assesment should be performed before pricing the movie.
We are looking to gather the needed funding for the different stages of the project development:
Once we have the Full Viable Product, we will run an Additional Coin Offering, directed for the cinephile and creative public, that is not related or does not yet know the crypto world. This amount is devoted exclusively to form the initial Production Fund.
The token distribution will be divided in three phases for different levels of participation. Discover which one fits the best for you.
Applying our beliefs about movie industry in a fair business model.
Adapting and enhancing Filmgrid to Blockchain Technology.
This .space web site has been created to record and inform the project.
Structure and developing of our White Paper version 1.0.
Project registration on ICO listing specialized websites.
Public Relations, SEO, Social Networks and online publicity.
First round of token distribution for private investors.
Filmpass Token Distribution in an Pre Coin Offering (ICO).
Filmpass Token Distribution final and long round begins.
Developing the DApp and Smart Contracts and public release of the code.
Minimum Viable Product with the Billboard and early Pitchboard.
Worldwide promotion of Filmgrid Decentralized Aplication.
Start the development of the Filmgrid Blockchain and configuration.
Well, all the work that has to be made to realease a top quality product.
Filmgrid Blockchain Platform Version 1.0 Release.