Now imagine this…
You are a well established filmmaker. You decide to make a 2 minute short film and sell a limited run of 100 authentic digital copies via NFT. Each copy of the film is sold for $1000.
Upon release, you immediately sell all 100 copies of the film for $1000. You’ve already profited $100,000 from your 2 minute short film.
If you’re wondering who in their right mind would pay $1000 for a short film, remember that what they are paying for isn’t just the film. It’s an investment in an asset that they believe will appreciate over time. They are really investing in you, not paying to watch your movie.
Skip to 5 years later. You just made a big studio film and have reached new heights as a director. The value of those 100 NFTs has now increased 10 fold. On the digital market, each copy of your short is now worth $10,000.
Here’s where things get interesting…
You get to collect a royalty percentage from your NFT every time it is sold second hand. That means when someone re-sells your film in the future, you take 10% of that sale (or whatever amount is specified).
Let’s say that in year 5, all 100 copies of your film are now re-sold from their original sellers at $10,000 a pop. That generates $1,000,000 in total sales, and your cut of it is another $100,000.
Now you’ve made $200,000 off of a single short film. And this momentum can theoretically continue for the rest of your life.
Keep in mind – this is just one very rudimentary example. There are plenty of more nuanced strategies as well.
Perhaps you pull still images from your movie and create a series of collectible posters. Or you release a secret director’s cut of your last film, exclusively as an NFT.
You could even include real-world perks in addition to the digital artwork. Just like how Kings of Leon are including lifetime front row seats to all of their concerts, you could do the same for your movie premieres.
The possibilities are really endless....Noam Kroll
