Startups

Cinematix.io is Introducing ICOs for Film Productions

Making movies from scratch can be a tough pursuit, especially for independent filmmakers. Gathering capital to perfectly execute the filmmaker’s vision can be troublesome since they aren’t backed by giant production studios with award winning accolades. At times, it can take a whole decade before the independent filmmaker and producers can climb out of pre-production. Elsewhere, 4 to 5 out of 10 films fail. It is time for the film industry to take breathe a little fresh air. Cinematix.io has come up with a unique way to fund films and cover most of their production costs. Except here, there are no big names, connections nor any policies to adhere to. Investors will secure shares of the film through the CINX token. Cinematix is introducing ICOs for films.

Market Analysis: Why now?

The US is leading the Film industry with a wide margin. Interlocking connections between the sports, news, and the entertainment industries allow collaborations and endorsements that are visible to the public. According to the Motion Picture Association of America, the number of movies produced in the country average around a total of 600. As of last year, the film industry brought home nearly $7.8 billion.

Russia has been basking in its film industry’s success too. Over the past few years, there has been a significant increase in the number of films produced.

The number of viewers who watched Russian films in cinemas in 2017 was the largest in 25 years. The country has evidently seen a rise in interested filmmakers and thus, a patron like Cinematix could help the industry skyrocket to a whole new level.

Next, Bollywood. Another thriving film industry, Bollywood has remained an integral part of the Indian experience since its inception. Filmmakers in India are not only encouraged, but are also widely accepted and celebrated along with their attempts to produce good entertainment. On average, Bollywood brings home about $2.8 million. The notion that Bollywood may soon dethrone its western counterpart from the top spot is still up for grabs.

European countries including Paris, Britain, Germany and Spain have shown an increase (200-500 films) in film production over the last decade. Moreover, China is another Asian country to top the charts in film production. This shows that film production is well spread out over the globe, making it all the more relevant for blockchain technology to intervene and revolutionize the way films are being made.

How it Works

  • Placing an application: a project may place an application on the platform, giving users the chance to see the full details of the project i.e team, genre, scenario, prospect before signing on board. Cinematix.io will automatically create a page of this project and assign a token for users to buy. Buying this token will mean that the user supports and funds the project. All calculations will be carried out using the CINX token.
  • Professionals review the application: Film industry experts will then give insights, predictions and suggestions to projects, making it easier for users to choose their pick of the bunch.
  • The campaign: The platform will then launch a campaign to support the project, allowing users to exchange project tokens for cryptocurrency. If the project reaches the minimum threshold of received support, the project is sent into pre-production. Participants also get tokens according to the amount of crypto they offer.
  • Production: Funds have now been gathered. At every step, funds are spent transparently, with token holders being given exclusive reports on the progress of the film and their money is spent. The relationship between the holders of the tokens and the project team is regulated by a smart contract. Funds are allocated using the CINX token.
  • Rental: After post-production and added touches, the film is finally available to be rented. The profit received from the film will be divided amongst token holders and contributors, according to pre-defined rules and regulations of the smart contracts.

Benefits

  1. Universal Technical Solutions: the platforms automatically forms a smart contract between investors and film producers that ensures binding security.
  2. Legal Support: The ICO for the film along with its terms and conditions are there for the users to review.
  3. Cost: The cost of conducting ICOs for films is significantly reduced.
  4. Audience: The platform serves as a market for potential investors to spectate and act accordingly. Most of the marketing and promotion that the project needs as a kick-start is readily provided by the platform.
  5. Screenwriters, Producers and Directors: Without any big names attached, the platform is a convenient medium for people interested in the film industry to pursue their dreams.
  6. Investors: A portfolio containing diverse projects.

RoadMap

Cinematix is still in the early stages of its development. Details of their ICO and funding have yet to be disclosed. The Russian startup was founded by Konstantin Khabensky and Ilya Zibarev, specialists in the field of film and cinema.

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Noefal Ahmed

Software developer, graphics artist and crypto enthusiast. Noefal is a performing artist and covers blockchain startups for BlockPublisher. Email: noefal@blockpublisher.com or contact the editor at editor.startups@blockpublisher.com

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