Anthony Hopkins’ new film is going to premier as a non-fungible token (NFT) on a new platform called Vuele.
The creative world was the first to adopt the concept, and it has already led to some record-breaking milestones. However, this is the first time that a full length feature film will be offered up for sale as an NFT.
“It creates scarcity in copies of the film and protects against piracy,” Dugdal told Deadline. The NFTs are likely to appear on Vuele in late July or early August. They will include the film along with extras at different price points, yet to be determined.
NFTs are collectibles. This means that the NFT copies of will be treated as a limited edition version of the movie. According to Rick Dugdal, the producer and director of the movie, there will be four or five ‘drops’ of the movie.
Each of these drops will be exclusive, limited-edition versions of the film and collectible content. Users can buy or bid on these items using cryptocurrency or regular credit cards.
And, here’s a quick look into how this works.
Traditionally, a film requires a label partner, distribution channels, and multiple parties across regions for a release. As an NFT, the film can be directly released on the blockchain, maintaining a ledger of all its owners.
The token is cryptographic, meaning it has established a unique identity and a confirmation of digital ownership. For fans, it means absolute uniqueness in the files they are purchasing, adding more value to the digital commodity.
"As opposed to Bitcoin, which is fungible and can be exchanged with millions of other Bitcoins, NFT's proposition of being unique makes it a collector's item or an investor's paradise," Vikram Subburaj, co-founder and CEO of Giottus cryptocurrency exchange told Business Insider.
"It is worth noting that NFTs are only proof of ownership and do not prohibit adoption or copies of the art on the internet or otherwise. That is, there is no IP associated with it other than claims to verifiable digital ownership," he added.
NFTs represent only the digital form, and artists are free to sell their creations in the physical world as well.
The creator faces two likely scenarios — blockbuster earnings or nothing. Like nascent cryptocurrencies, NFTs are yet to take off as a mainstream utility, and their profitability is unpredictable. But it offers a look into the future, where independent artists can show their work to the masses without relying on third parties.
In terms of monetisation, it's pretty simple.
An NFT is created by ‘minting’, which is the process of developing and placing the file on a blockchain. Ethereum is currently the go-to blockchain because of its smart contracting ability, which can automatically maintain and update the ownership ledger.
Once minted, if the NFT is sold for ₹100, the creator earns the sum directly. If the first owner resells the NFT after a year for ₹2000, the creator gets a particular percentage of the sum as a royalty fee. Hence, his earnings for the second transaction will be ₹200 --if we assume the royalty fee is set at 10%.
And, the creator will continue to earn royalties as long as the NFT is being traded.
"For example, an original song from AR Rahman can be 'owned' uniquely on a blockchain. When the demand for the song goes up or becomes valuable with time, you can sell it with a considerable gain to the next owner, much akin to how we sell a plot of land or a house," Subburaj added.
Hence, the initial investor or buyer can also make money on the blockchain while protecting the creator's assets from piracy or illegal distribution.
The blockchain also helps ensure that the art or creation is permanently archived and cannot be tampered with, automatically creating another level of authentication that can withstand time.