Blockchain technology could be the answer to many of the questions troubling the entertainment industry, Igor Khmel believes.
Mr. Khmel is the CEO of BANKEX a company uniting the blockchain with Banking-as-a-Service to transform capital markets. Banker can transform many asset classes into a digital system, which provides it with liquidity, flexibility and security.
Entertainment and the blockchain? They’re a perfect fit, Mr. Khmel explained. Hollywood produces movies and negotiate with theatre chains who screen them. Studios pay performers. In both situations it doesn’t always go smoothly, as adverse payment processes, expenditures exaggerations, ignored licensing terms and other behaviors stifle external interest and slow capital flow through the entertainment industry.
Think of the movie industry as its own ecosystem that can be managed by smart contracts. Every stakeholder, from the big star and studio head down through agents, theatres and other contractors have their payment stipulations entered into a smart contract, which does not get activated until all parties sign on. The ultimate is that as soon as an admission is paid and recorded every party gets their cut.
“The technology makes for a clear and smooth distribution of money,” Mr. Khmel explained. “The smart contract is an engine for collection as per an agreement.”
BANKEX’s goal is to become a reliable part of the movie industry, Mr. Khmel said, adding it centers around the Moviecoin. Created in partnership with Christopher Woodrow, producer of the hit films Hacksaw Ridge and Birdman, the Moviecoin automates reconciliation and distribution so everyone quickly gets their fair share. Intellectual property rights can be quickly transferred and financial gatekeepers are prevented from hanging on to funds for longer than necessary.
The blockchain can also make it easier to invest in content creation, Mr. Khmel suggested. Traditionally, content investors find it difficult to exit. If that investment was made in Moviecoins, they can easily be traded on a secondary exchange like so many other asset types.
“Normal methods are hard to use but finances can be easily trackable on the blockchain,” Mr. Khmel said.