WHAT’S WRONG WITH THE FILM INDUSTRY TODAY?
The existing model of film distribution was created decades ago and hasn’t adapted well for the Internet age.
Changes in distribution technologies and consumers’ behavior result in falling number of films being sold to local distributors. If a film is not sold to a local distributor in a certain country or if it was sold in the past but the original license has expired, it’s not legally available for the audience there and can’t generate any revenues for its rights holders.
Then, why don't content owners make their films globally available online? Because, there are other problems.
All the existing Video-On-Demand platforms control both the information and the cash flow, which puts content providers in a disadvantaged position. Content owners have no way of verifying any royalty reports provided by platforms and can only accept them without questioning.
Royalty reporting and invoicing are complicated and time consuming – both for the platforms and the rights holders. This burden is especially heavy for independent companies with limited administrative resources. It also leaves a lot of room for human and machine errors.
Today’s global VOD-market is strongly dominated by a handful of gigantic and highly centralized companies. They have full control of content promotion and visibility at their virtual stores and strongly prioritize the most current commercial mainstream fare from major studios, leaving more edgy, independent, classic, foreign language and other niche content lagging behind
Can Blockchain-Video-On-Demand fix these problems?
CINEZEN is a decentralized peer-to-peer (P2P) marketplace, which employs blockchain technology to revolutionize online film distribution:
Any user can buy or rent films from any rightsholder which joins the marketplace. The rightsholder’s share of the revenue is paid by user directly to the rightsholder’s wallet.
Every store can sell or rent any film available at the marketplace, according to the basic terms of the smart contract defined by the rightsholder.
Any user can enter any store and select those which suit them best. The store’s share of the revenues is paid to them automatically by the smart contract. Any user can start his or her own store.
Our strategic goals are outlined below. We are progressing at a high speed and so far, we are on schedule.
Cinezen Blockchain Entertainment founded
First BVOD license agreements signed at Berlin Film Festival
MVP version presented at Cannes Film Festival
Beta version launched for public testing. The first 200 films are uploaded and made available
Series A investment round completed
Production version with 1000+ titles launched
In October 2018 we launched the first ever transactional Video-On-Demand platform, running on blockchain.
In the beta version the users are able to rent movies, paying both with ether (ETH) and fiat payment methods such as credit cards and PayPal. This version is a Proof-Of-Concept for both the film industry and the crypto community as it demonstrates how the process works and helps film companies adapt to crypto economy. It also helps us to build a community of early adopters and to receive very valuable feedback from our first users.
Sam holds a degree in Applied Mathematics from Moscow University of Economics and Statistics. He moved to Gothenburg, Sweden in 1991 and worked as a software engineer and a CTO for several Swedish companies until 1996 when he started a film distribution company Maywin Media / Cinema Without Borders, which became a leading force of independent and arthouse film distribution in the territory of former USSR where it released over 600 films in the course of 20 years. Sam also produced and co-produced 5 motion pictures and hosted a prime-time TV show about modern and classic cinema.
Pavel holds a Bachelor's degree in Mathematics and Computer Science, and a Masters degree in Software Engineering. He has more than 10 years of professional experience in different domains including the telecom industry. Before founding Cinezen, he worked for Telia Company developing one of the biggest VOD platforms in Scandinavia. Pavel is a blockchain enthusiast and member of the Gothenburg Ethereum community.
Staffan is a Chartered Accountant with over 30 years experience in audit and corporate finance including employment in one of the Big Four audit firms in Sweden. He holds a Master's Degree from Gothenburg School of Business Economics and Law. Staffan is also a co-author of several popular books monitoring business management and administration.
Head of content
Evgenia holds a degree in Mathematics from Lomonosov Moscow State University and is now studying at The All-Russian state institute of cinematography. Before joining Cinezen she managed business processes reorganization projects and participated in launching of several international special projects in a large logistics company. Previous to that she worked as a strategic and operational consultant in one of the Big Four auditors company. Evgenia is a cinephile, when not watching movies she is talking about movies.
Head of marketing
Erik is a writer/director of feature films, TV drama, commercials and a marketing strategist. Academic experience includes studies at NYU in directing, screenwriting at UCLA and radical innovation at MIT. His feature work has been theatrically released and distributed by major media channels and streaming services around the world. His commercial work has been awarded for creative excellence at festivals as The One Show, AEA, EPICA and Cannes Lions. As chief marketing strategist he has created strategies for brands like Volvo and the government agency Swedish Transport Administration.
Cloud and distributed systems specialist
Henrik has over 10 years of experience as a developer, specializing in distributed systems architecture. Previously, he worked at the San Francisco startup NodePrime (acquired by Ericsson) handling security and database internals for the company’s hyperscale datacenter management platform. He was also part of the founding team that built Appspotr (publicly traded as APTR).
Head of business development
Alireza holds a Master of science in engineering degree from Chalmers University of Technology. He has more than 10 years of professional experience working in Telecom, Telematics and the Finance industry. Before joining Cinezen he worked for a 2.5 EUR BN hedge fund, responsible for development of a trading and execution system. Previous to that, Alireza worked as a senior development consultant for top tech companies like Volvo Group Connected Solutions and Ericsson.
Blockchain and back-end developer
Dzmitry has a Bachelor’s degree in Computer Security and he got his Masters degree from Chalmers University of Technology. He has 10 years of working experience in top tech companies including Ericsson and Jeppesen where he work on comprehensive projects related to infrastructure and security.
Ruben Östlund is arguably the most internationally acclaimed contemporary Swedish film maker. His latest film “The Square” won Palm d’Or at 2017 Cannes Film Festival and was nominated for Oscar and Golden Globe. His other accolades include Golden Globe nomination and Jury Prize in Un Certain Regard section at 2014 Cannes Film Festival for “Force Majeur”, FIPRESCI prize at 2008 Miami Film Festival for “Involuntary”, as well as Golden Bear for Best Short Film at 2010 Berlin Film Festival for ”Incident at a Bank”. His films won totally 14 Swedish national awards Guldbagge in various categories.
Nick Holdsworth is a writer, journalist and filmmaker with 25 years’ experience of covering Russian and Eastern European affairs. He has served as Moscow correspondent for the (London) Sunday Telegraph, the (London) Times Higher Education Supplement and Eastern Europe correspondent for The Hollywood Reporter and also Variety. He is currently Moscow correspondent for France 24, the international French public TV channel. He divides his time between Moscow and Bristol, UK. A fluent Russian speaker, he has also lived in Prague and London.
Harris E. Tulchin is a veteran producer, author, studio executive, entertainment lawyer, and law professor, who has produced or executive produced over 15 motion pictures, co-authored a book considered one of the bibles of the motion picture industry entitled "The Independent Film Producer’s Survival Guide," and, as a graduate of Cornell University and Hastings Law School, has practiced entertainment law since 1978 and is a member of the California and Hawaii state bars.
Magnus is an ICO Advisor and Senior blockchain developer with experience from several successful blockchain projects. He has experience as an early advisor, and Lead developer (token, ICO and platform contracts) of the highly successful 30M$ ICO Shipchain, as well as token contract security auditor (for example DBCC token that rasied 16M$ presale), and ICO advisor for several other projects.
We are negotiating with over 350 rights holders around the world. The reaction to CINEZEN is immensely positive. Here are our Licensors confirmed by September 2018:
No, it’s just like with the Internet - you don’t need to know technical details to use it. Buying films on CINEZEN will be as easy as on any other VOD platform. Or buying a cinema ticket online.
For every transaction CINEZEN will only receive a small technical fee. This fee will be fixed and not depending on the end-user’s price, as CINEZEN is not a part of the P2P sale, but merely a technology provider. The rest of the money will be split between the content owner and the sales point/store, as defined by the rights holder (we recommend 80/20).
Every end-user transaction will be instantly split, and every part paid directly. There will be no central body accumulating funds and no financial transaction between the platform, the stores and the content owners.
To stream or download the films the end-user can currently pay both with a crypto-currency Ether (ETH), PayPal and credit cards. We are planning to implement integration with the most popular mobile crypto wallets and to add more payment methods in the future both fiat and up-and-coming crypto currencies such as TON, Libra etc.
The rights holders are paid in Ether automatically and directly into their electronic wallets. They may either exchange Ether to USD, EUR or any other fiat currency themselves using regulated crypto exchanges or delegate it to CINEZEN and get paid in USD or EUR. We are planning to add automatic exchange functionality in the future. We are also establishing collaboration with world-leading collection agencies, such as Fintage House and Freeway, who can handle and convert Ether revenues for their clients.
Our goal is to make every film globally available but until this goal is reached CINEZEN will make every film available only in the territories where the distribution rights are licensed by respective rights holders. In all the other territories the film will be “invisible” to the audience.
Yes, we are using the best industry-standard DRM encryption integrated with blockchain and smart contracts. At the next stage of development, we are planning to introduce decentralized encryption that will take content protection to an unparalleled and currently non-existent level.
In a crowded marketplace of SVOD content, the need for curation has become increasingly important to allow films to breathe and find their audience. Of equal importance, the rights management of instant payments -- generating revenues for rights holders in different countries (whether they are contractual rights holders or non-contractual rights holders, i.e. crew members) -- requires a trustworthy platform. Our panelists will examine these issues in detail and provide a working framework on how these rights managements systems can possibly be implemented for a successful launch.
Presented by a few observers and early adopters as the technology that will soon revolutionize practices in all types of businesses, blockchain has also made its entry in the current debates within the film industry sector, notably as part of the discussions organized in the scope of major film festival markets.
Blockchain panel 'Transfairency Anatomy of a Blockchain Distribution Strategy' will consider the opportunities provided for the industry by Blockchain technology, and how businesses can ‘unchain’ from traditional models. Panellists include Sam Klebanov, founder of Cinezen Blockchain Entertainment, and Lori McCreary, president of the Producers Guild of America and CEO of Revelations Entertainment.
Cinezen Blockchained Entertainment AB, ASKIMS FORNBORGSVÄG 12B, 43642 ASKIM, SWEDEN
+46 707 21 47 71