MOVIESCHAIN - BLOCKCHAIN-BASED DECENTRALIZED FILM DISTRIBUTION PLATFORM

INTRODUCTION

OVERVIEW

The proliferation of portable cameras and video editing software today has created new opportunities for both aspiring and established filmmakers. It is now possible to film an entire movie using only GoPro or an iPhone. However, this ease of production for filming, as well as reduction in costs, does not address the continuing need for a direct connection between independent filmmakers and their audiences. 

Currently, most of a film’s budget and revenues go to distribution and marketing third-parties instead of directly to filmmakers. While many filmmakers today turn to crowdfunding to secure funding, and in spite of the availability of crowdfunding platforms, thousands of small companies that produce independent films are still not able to monetize their creativity. This lack of funding leads to many talented filmmakers and screenwriters turning to exhibition venues, such as YouTube and other video blog platforms, for revenue.

OVERVIEW OF THE FILM INDUSTRY AND DISTRIBUTION CHANNELS

FORECAST GROWTH FOR THE ONLINE FILM INDUSTRY

Currently, global box office growth rates are gradually slowing down. The Motion Picture Association of America (MPAA) reveals that over the past five years, the volume of global box office revenues is growing at an average rate of only 1.5% per year, with 60-70% coming from international distribution (Figure 1). This decrease in film revenues can be explained by several factors, such as growing economic problems in particular regions, the informatization of society through more widespread Internet use, the growth in sales of mobile devices, and the global spread of Internet piracy, as well as changes in media consumption habits due to generational shifts in both developed and developing countries.

According to IHS Markit, around 164,000 movie theaters are in operation in the world, an increase of 8% from 2015. More than 90% of these theaters are digital. The leader in terms of growth in number of theater screens is in the Asia-Pacific region, which has increased 18% since 2015 (Figure 2).

IHS Markit data further shows that, in 2016, the number of premium format cinemas also increased by 11%. This growth in the number of premium format movie theaters demonstrates that viewers want to watch films in comfort, as well as watch films chosen by the individual viewer. And nothing can compare to the comfort of home, the ease of purchase, and the selection of films that online movies offer. All of these factors combined indicate a strong future for online movies.

As audiences decline at traditional movie theaters, the Bureau of Economic Analysis indicates that the online video entertainment industry is one of the leaders of economic growth (Figure 3). Online video streaming platforms, such as Netflix, Amazon, Hulu and Fandor are fundamentally changing the film industry. MoviesChain by TVzavr’s project for online independent films distribution is therefore directly targeting one of the fastest-growing markets for further growth based on long-term trends in the global economy.

OVERVIEW OF THE FILM INDUSTRY MARKET 

The countries with major film production can be sorted into four key groups, according to the number of films that are annually produced: 

1. Group A (500 films a year): This category is composed of the global leaders in the film industry — the United States (U.S.), China, India, and Japan. Note that the largest faction represented is composed of Asian countries. However, the U.S. film industry is the largest in the world, both in terms of the number of films produced and the volume of box office returns. The Bureau of Economic Analysis reports that the share of the U.S. film industry, including television, accounts for 3.2% of the country’s GDP. In comparison, the share of engineering and agriculture industries are only 1.2 and 1.3%, respectively. Moreover, U.S.

The world’s biggest motion picture companies are also all located in the U.S.: Warner Bros., 20th Century Fox, Paramount Pictures, Sony Pictures, Walt Disney Company, Columbia Pictures, and Universal Pictures. These major studios actively invest in film industries in other countries, with the goal of increasing revenue and overall strengthening their international positions. It is worth noting that U.S. filmmakers are increasingly choosing to make films in Scandinavian and Asian countries as well as Canada. The main reasons for this are tax breaks, compensation payments, and grants from local support funds.

PROJECT TIMELINE 

TOKEN OPERATIONS

TOKEN SALE 

ZVR will be launched on the Ethereum blockchain as ERC tokens. 

After a certain number of tokens have been sold, the cost of tokens will gradually increase over time. The ZVR Token sale will take place from 2018 Q2 to 2018 Q3. The exact date of token sale to be announced. The softcap will be $5 million, and the hardcap will be $30 million. Acceptable cryptocurrencies that can be used during the process of Token sale are: ETH and BTC. The price for tokens will be determined when the Token sale launches. All unsold tokens will be burned. In the case that the revenue from the Token sale is less than $5 million, then all collected funds will be returned to the original owners.

TOKEN DISTRIBUTION 

100 million tokens will be issued:

• 70% will be distributed during the initial sale 
• 5% will remain in the reserve fund in the case it is not possible to purchase tokens on the secondary market for the reward program 
• 2% will be set aside for the bounty campaign 
• 23% will be transferred to the initial investment team 

All allocations will be changed proportionally, keeping the same percentage of allocation for initial sale, reserve fund, bounty campaign and allocation to the team, if less than 70 million tokens are sold during the initial sale.

Distribution of funds received from the original token release:

• Marketing-50% 
• IT Development-20% 
• Operating Expenses-20% 
• Legal Support-5% 
• Board of Directors and Advisory Board-5%  

DISTRIBUTION 

After the Token sale, the tokens will be cross-listed on cryptocurrency exchanges, potentially Bittrex, Poloniex, Kraken, and others.

MORE INFORMATION VISIT :

WIBESITE : https://www.movieschain.io/

WHITEPAPER : https://www.movieschain.io/whitepaper/

TWITTER : https://twitter.com/movies_chain/

FACEBOOK : https://www.facebook.com/movieschain

TELEGRAM : https://t.me/movieschain

AUTHOR-

PUTRA969695