Russian Movie Industry Goes Crypto
The Russian movie industry is going crypto, with two major blockchain-based projects for investment in local and global film sectors revealed recently. Fyodor Bondarchuk, a well-known director, actor and producer, announced Cinemico, a blockchain-based investment platform launched in collaboration with entrepreneurs Alexander Chistyakov and Leonid Boguslavsky.
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Everyone Can Be a Movie Producer
The platform is being advertised as “creating a new link between viewers and film companies as everyone can now become a full-fledged producer in large movie projects.”
The first film project to be funded on the platform, a sequel to Prityazheniye (Attraction), directed and co-produced by Bondarchuk, has already been announced.
However, potential investors will have to wait for about three months before the platform becomes fully operable and they are able to invest their cryptocurrency in the project.
Attraction, a sc-fi action movie, was released in early 2017 and grossed $18.6 million USD, becoming one of the year’s most successful local releases.
Beta Version to Go Live Soon
Actor and producer Konstantin Khabensky has an even more ambitious goal as his project, Cinematix, aims to operate on an international scale.
Khabensky teamed up with Nikolay Yevdokimov, a well-known crypto entrepreneur and co-owner of ICO facilitator ICOBox and promotion service for mobile apps Appintop, and Ilya Zibarev, chairman of the board of major local lender Russky Standart.
According to the road map on the company’s website, a beta version of the platform is expected to be available this July. The first projects selected for funding on the platform by Khabensky’s production company are to be announced before the end of the summer.
In the fall of this year, Cinematix plans to add projects from North America, Europe and Asia, allowing users to invest in those regions’ film industries as well.
Cinematix claims that, although the movie industry is overall a risky business, thanks to the platform, any user will be able to collect fees from exclusive rights to projects they have funded, which, in case a project is a success, could be “comparable to profits of top film producers.”
Most Films Still Funded by Government
The founders invested $1.5 million in Cinematix and expect to raise another $20 million in an ICO this summer. Financial data for Cinemico have not been revealed.
The arrival of these two projects in Russia was apparently triggered by overall problems with funding film projects. The lion’s share of cash for Russian film producers comes from the government, and competition for it is fierce and not always fair, as many complain. Meanwhile, private funding is insignificant and limited mostly to highest-profile projects.
It remains to be seen, though, if blockchain will be able to revolutionize the film industry’s funding models, adding transparency and accountability, as the founders of Cinemico and Cinematix hope.
Is blockchain technology a viable platform for raising arts and film funding? Tell us what you think in the comments.
Images via Hollywood Reporter, Pixabay