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IFH 585: What is the Controversial Indie Film NFT Franchising Method? with Cameron Van Hoy

Cameron Van Hoy is a veteran in the entertainment industry. After a stint acting, he wrote and produced films such as Treasure of the Black Jaguar, Tooken, and Sharkproof. He really came into his own producing the hit horror comedy Tragedy Girls, which hit theaters around the world and has gone on to become a cult classic.

His debut directorial feature, Flinch, was released early this year to great acclaim and theatrical distribution before finding a digital home with the tech giants of Amazon, Apple, and Google. The film continues to accumulate a loyal following and Van Hoy has an affinity for gritty stories documenting love, family and crime in an epic and timeless way.

Cameron created the indie film called Flinch that was are released and franchised via NFTs. It’s a controversial method, but we are aiming to be trailblazers of the industry and help mitigate the controversy surrounding NFTs by releasing it with a solid foundation.

It stars Daniel Zovatto, Tilda Cobham-Hervey, Cathy Moriarty, Tom Segura, Buddy Duress, David Proval, Steven Bauer, Michael Drayer and more. It is a crime thriller that tells the story of a young hitman who lives with his mother and a girl who witnesses them commit a murder.

The backbone of any film growing a supporting audience is the community behind it. NFTs survive and thrive off of their communities. We are creating 9,999 original art pieces that are representative of characters in the universe. Community members will have the opportunity to purchase these for a set amount each. The funds from these NFTs will go into making the sequel to Flinch. Upon selling all of the NFTs, the film immediately goes into preproduction.

A dedicated audience of nearly 10,000 have an interest in ensuring the film succeeds. Those who hold these NFTs can be verified and are rewarded for doing so. After parties with the cast and crew, special Q&As with the director, early access to the script, visits to set during shooting, and red carpet premiers.

They gain exclusivity. Additionally, as a reward, 50% of the income generated from the movie will go into a shared community wallet. The NFT holders can vote on how to use these funds. They can use it to market and promote the film, create additional IP (comic books, TV shows, etc.), or whatever else they want to do with it! It gives holders “skin in the game” of the art and movies they love.

Joe Doyle (Daniel Zovatto) is a young hitman following in his father’s footsteps. Quiet and reserved, he is observant and careful, making him very good at what he does. While studying his new target, city council member Ed Terzian (Tom Segura), Doyle develops a distant crush on the councilman’s assistant, Mia (Tilda Cobham-Hervey). After she walks in on her boss’s assassination, Mia is caught by Doyle who must decide whether to let her go or to dispose of her for good.

As Doyle aims the gun at her head, Mia doesn’t flinch, bringing him to a crossroads. Unsure of what to do, Doyle brings Mia to his home where he lives with his overbearing mother Gloria (Academy Award Nominee Cathy Moriarty), and holds her hostage until he can gain some clarity.

Doyle’s boss, Lee (David Proval) and his son, James (Buddy Duress), start questioning Doyle about the missing girl, and slowly he comes to find that Mia might not be entirely who he thinks she is. This brings Doyle to make the ultimate decision: does he kill the girl who didn’t flinch?

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Cameron Van Hoy 0:00
When I came in, I quickly realized I'm not going after anyone that's in web two. I'm really going after people on web three.

Alex Ferrari 0:07
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Cameron Van Hoy 1:00
Good, how are you?

Alex Ferrari 1:01
I'm good brother. I'm good. Man. Thank you so much for coming on the show you guys reached out to me about what you guys are doing in the NFT space in the indie film space. And apparently, I have now become the podcast to go to for this stuff. Because I have been doing a lot of these NFT episodes lately. And it's just interesting, man. There's some really cool stuff that filmmakers are finally cracking the code and the technology and everyone's trying new ways of doing things and figuring things out. I mean, it's very, it's it's internet. It's the internet circa 2001. I think with the space.

Cameron Van Hoy 1:35
Yeah, I certainly is. And it's I think it's I think it's the most exciting thing to happen to independent film in a long time.

Alex Ferrari 1:44
Yeah, absolutely. Well, we need some help. That's for damn sure. Drop out there. It's rough out there for the independent filmmaker. So before we get started, man, how did you and why did you want to get into this insanity? That is the film industry?

Cameron Van Hoy 1:57
Well, movies, you know, I love the movies I I always loved storytelling and filmmaking and films and drama from I was very young. I started off as an actor at a very young age, like, you know, I grew up, I was one of those kids in theater and doing all that stuff. And then I this was in San Diego. And then I got an agent and I was on a show called Hey Arnold. And I did some movies. I was I was in this movie when I was 14, where I rob a bank and Burt Reynolds is the police negotiator and Nisha

Alex Ferrari 2:35
Cop and a half?

Cameron Van Hoy 2:37
No movie called Pups.

Alex Ferrari 2:39
Okay, okay!

Cameron Van Hoy 2:40
Movie called pups. And so like I had an introduction to Hollywood then. And then of course, I always had a video camera. I was one of those kids that grew up with a video camera. And then I moved to New York, went to the High School for Performing Arts, continued studying drama theater, really fell in love with movies. They're like World Cinema. Up until then, you know, I was in love with Rambo or Indiana Jones, or just all the great movies that we grew up with. Sure, sure, and Disney movies and all of that. And then in New York, it was at the Brooklyn Library that I started renting like all the great movies and I was going to the theater school, I'm surrounded by the culture of New York City and really dove into like World Cinema and just fell in love with the movies and was making little films with my video camera. And then I decided I was going to move to LA to make movies and so I moved to LA and I've been out here making films ever since.

Alex Ferrari 3:39
Very cool, man. Now what what made you decide to go into the NFT space with the new film Flinch? What are you doing that's unique in this in this space with NFT's?

Cameron Van Hoy 3:53
Yeah, so I guess Okay, so I made flinch pre pandemic, right, I was making it leading up to the pandemic. And then we were doing post production through the pandemic. And you know, the world really changed during that time. And then I also even before I knew anything about NFT's I knew that I wanted to own my movies. You know, I had done a film previous to this movie called tragedy girls, which did really well was in the festivals that had a great cast Josh Hutcherson Zenit Craig Robinson Zenit Alexandra Shipp, to horror comedy was received incredibly well. It's on Hulu now, you know, have a deal with Hulu. But I you know, before that I did a film that I sold to Netflix or licensed to Netflix and like it just I saw the business get tougher and tougher for independent filmmakers and the streaming deals worse and worse. And then you have these like other companies that come in licensing movies for like 10 to 15 years. It's just not the deal. Suck and so When I knew I wanted to own my films, and I just was like, There's got to be a better way. And I was familiar with filmmakers like Jim Cummings and other people who were owning their films, putting them on iTunes themselves, putting them on Amazon themselves, which seemed really great the idea and spirit of ownership, and like distributing yourself and you know, the technologies here, now we can get our films out there, you know, on our own, we don't have to sell them. But But still, the economics of that is very tough. Those streaming services, those tech platforms don't give you any data whatsoever, right. Their fees are egregious, or just I think, maybe egregious is too strong of a word, but it's not great. And then I learned about and I've been in crypto for many years, just buying Bitcoin and Aetherium and tons of other coins for many, many years. So I've always a believer in blockchain. And from early on and was very excited about I always kept my ear to the ground. And I heard about NFT's and this guy named vol. Ravi Kahn, I like to listen to his podcast sometimes. And he was talking about how the technology of NFT's is really about communities, owning projects, and through that community ownership and involvement, the value that can be created and what that really means for the future and how the future will look more like a world where projects are owned by communities developed by communities, the values are turned back to those communities. And that this is a real paradigm shift. And that was my aha moment. And I said, Wow, you can replace a movie studio with an NFT community. Right? Because when I first heard about NFT's, of course, I'm thinking through the framework as a filmmaker. But you know, my first gut reaction was like, well, the movie can be an NF T. That doesn't work, right? Yeah. Yeah. Yet, yet. Sure. Yeah. But I was more excited about the idea of community. And so I looked at flinch. And I said, Okay, well, I'm releasing this film. And I want to do it as a franchise to crime film, and I wanted to do it as a three part crime franchise. So I said, You know what, I'm gonna release it to an NFT community, I will take the film, I will release it to an NFT community. And then when the mentors complete, we go and make part two, and then hopefully repeat. And that was the initial like thought, it's like, okay, I could build a franchise with a community via NFT's. And then when I started really getting into it, and learning about the space and seeing what was happening in the film, NFT space and just the empty space in general, it started really taking shape. And it's incredibly well.

Alex Ferrari 7:33
So our it's so explicit. So if anybody and by the way, anyone listening who doesn't understand what blockchain or an NFT's are, there's multiple episodes on the show that you can go back to and just do a search. Because I don't want to just every episode explain what it is, in every episode explain blockchain, which is difficult to understand for, for a lot of people. So it's, you got to wrap your head around it. You know, I've, I've done a tremendous amount of research on in blockchain and NFT's I've, I've sold a few of my own ft. NFT's. And it's really an interesting space. But again, it's just very much like circa 2001. Internet, like people are just like, what's a web page? How is the web page working? Like, how can I get how can I get paid to do this? There's so many different technologies that are just starting to try to get ironed out. And there there is literal. I mean, we're in we're in dialogue. Right now, in the scope of technology, like we're in dialogue, we're at a really fast mode, and but we're still not a DSLR a DSL or, or cable or ether, you know, like none of that. So what our internet is our versus the internet analogy versus where we are with NFT's and blockchain, there's still like, really, there is a block in the technology to get it to where we all know it's going to go in 10 years, but it's getting there. It's even in the last three years. It's, I mean, NBC just did a five part series on blockchain and crypto, you know, so it's, it's becoming a more, it's becoming much more in the zeitgeist. So you decided to build a community around a movie? How did you find as the original movie?

Cameron Van Hoy 9:14
I find is that the way that I financed any of my other films with private equity? And some yeah, I've done things that tax credits foreign sales, this particular one I did with private equity investors that I'd worked with on my previous films.

Alex Ferrari 9:28
And then And then while you were in post is when you decided, hey, I'm gonna, I think we're going to try to do this NFT thing. So are you are you, how you distributing this film?

Cameron Van Hoy 9:37
So part one exists as like a utility for this project and for the community. So I've put it on iTunes, I've put it on Amazon. I've also built my own decentralized cinema for this project, which works on Polygon even though the NFT's will be on the Etherium network. So anyone who is in the web three ecosystem and has a smart wall All of our crypto wallet, they can connect to our site, send over to Matic tokens and have access to watch the film there. And also by doing that you are on our whitelist in order to mint or NFT's. So I have like a web three way to watch the film. And then I've put it out domestically via web two platforms like Amazon, iTunes and places like this.

Alex Ferrari 10:21
So what so everybody understands what web three is. Web three is basically the NFT crypto blockchain space. Right? Yeah, I say that. I'm just saying, Yeah, because people I get you, I understand where you're at, but like a lot of people listen to like, what are they? Are they talking another language? Because if we, if we just start going straight geek, we can go hard, and then everyone's gonna just turn off because they're not gonna understand what the hell's going on.

Cameron Van Hoy 10:46
There are it's very interesting. So what I'm finding in the spaces, yeah, there is a whole culture and economy and community in web three, right? There are people with smart wallets, crypto wallets, and Aetherium and blockchains and NFT's and they are operating and they're buying NFT's. They're getting involved in projects, the ecosystem really exists around Twitter and discord, your people are finding out about product projects on Twitter. And then they are joining those projects discords getting on whitelist, which is access to buy the NFT's early on oftentimes for a cheaper price. It's like that, you know, going public moment for a project. And they're, they're, you know, changing their profile pictures, they're building together, they're participating in games together. One thing that we've been able to do, since we have Part One complete as we do movie nights for other NFT communities, because this ecosystem, we're talking about this economy, whatever you want to call it, it's very, like you said, it's closed off, it's hard to get into, you have to take the time to understand the wallet, set up the wallet the right way, get some eath in your wallet and start buying and trading. And then you start realizing the community aspect and how these communities rally together build value by hyping up other projects, so their own projects, and then in turn, you know, their price of their NFT's are rising, and people are playing that game by buying multiple energy, right? So there's a lot of people in that world already. I shouldn't say a lot. It's probably a drop in the bucket. But it's a thing. It's a world. And so, you know, people are building games and Metaverse is in film franchises like what we're doing and clothing brands. And there's insane amounts of value being built around these things. Of course, I think the larger goal is that these things that communities build, eventually are utilized, explored, understood or purchased by the general public, right? But but within this community they're building and so when I came in, I quickly realized I'm not going after anyone that's in web two, I'm really going after people in web three, you know, so it's like, I'm going to a bunch of NFT de gens or tech forward thinking people and saying, Hey, let's build a franchise together. You know, and this is part one, you can watch it. And if you like it, you can be a part of building out this larger franchise. So yeah, that's how I've kind of approached it.

Alex Ferrari 13:07
Do they have part ownership if they buy the NFT?

Cameron Van Hoy 13:10
So the way that it works is they get governance access and value, right? So obviously, anyone who has the NFT owns their NFT. Right? That NFT's on by that are NFT's are generative characters that exist in part one, two and three of the franchise, right that generative. They're criminals, crooked cops, Femme Fatale, we are crime franchises. And so if you hold if you own those entities, you own the IP rights to that character. What we're doing is the franchise the larger ecosystem is allowed to use any of these characters at any time within the films that we're making the games and then any other ancillary that we derive from it. But you as the holder of the NFT also have the IP rights over that character. So you can go make a spin off about that character if you want. Oh, really? Yeah, you can make a YouTube podcast channel where you're interviewing people in Avatar of that character, you can make your own Instagram account around that character and speak and post in the voice of that character. You can do anything you want. The only thing we ask for is like Movie Studio is a first right of refusal with a first look deal with anyone models and NFT. So if you've developed your specific character to a point where you feel there's an audience and a story and lore, you want to go develop it, you come to us first and see if the community wants to use its community funds within the wallet to finance whatever project you're doing with your character. So that's kind of the ecosystem around the NFT's and then there's the central franchise that the project makes. So we already have Part One complete we're going to go into part two we do that with the community. They're involved in the creative process they have access to control the creative meetings, these things are token games you have to hold an NFT in order to get in right so witness watch partake in the discord like I'm there all the time communicating with everyone and there was a real team, it's building and people are coming up with lore and ideas and all sorts of stuff happening. We have like location channels where people drop Location images and ideas and car images and soundtrack, concepts inspirations. So it's really like creating communal creativity. And then a percentage of whatever comes back from these films, the value from their exploitation goes back to a community wallet, that the community governance, so it's the return of value back to the community. And the community can decide if they want to save by the floor price of the NFTs, which is subsequently just boosting their profits like returning it right to themselves almost like a buyback in a way. Or they can put it towards more marketing to get the word out there about the project in a larger way. Let's say we've made part two and we watch an early cut of it and decide that we want more action, well, we can decide to go back in and do some pickup days with that community wall. Right. So that's, that's how the ecosystem works. And then the goal is to make a native token, so that within this franchise ecosystem, we're just you know, X movie, we license Part One and Two to Netflix, say, in a year, Netflix wants to get on the web three thing, they license these two films from us put them on the front page, and it's just throwing numbers out, it's a million dollar deal. They're excited about web three. Well, a percentage of that million will just come right back into the ecosystem going wallets and if we have a native token can just be exchanged for that token and air dropped into everyone's wallets. Same with what three exploitation, right? Like if the film continues playing, or we are able to build out like a play to earn game and there's, there's some form of cash flow from that those native tokens can just automatically no one has to do anything, because of smart contracts in the blockchain, just drop into everyone's wallets. So the goal is that you create this ecosystem and like a real, real value, ultimately, so that's

Alex Ferrari 16:50
So then, so then, if I if I can translate, you're building a community of like minded people who are interested in this franchise, they're, they're buying the NFT's by buying the NFT's, they are not part of this community, that's their entry point to the community. There are smart contracts that state everything, you just said that, you know, blah, blah, blah, blah, blah, all that stuff. So then if, let's say, you get a million dollars from Netflix, great. A percentage of that, I think, is I think I read somewhere 50 50%. Like goes. So if it's $500,000 goes straight into the community wallet for everybody to kind of govern. And then 500 goes to the you guys that set this whole thing up, which is fine. actually convert more than fair. So then, let's say there's a video game spin off, that video games spin off as bought by by Blizzard for $20 million, 10 million goes to you 10 million goes into the community wallet. And then we start building out what and then everything else other ancillaries other exploitations of the movie, whatever they might be, when that money comes in. It goes in splits 5050 goes into the into the community, and then you start building from there. So you it is in the best interest of the community hold the token holder or the excuse me, the NFT holder to promote the living hell out of this to try to get the word out because the more people buy, they have more control of what's happening with the project. But they don't get a percentage. They're not part owners of it. They're part owners of the community. In other words, is that that's that's the that's how you guys putting it together? Yes. It's a very interesting concept. How many? How many NFT's do you have for this film franchise?

Cameron Van Hoy 18:36
Doing 9999 Yeah,

Alex Ferrari 18:41
Okay. Are they all mented already?

Cameron Van Hoy 18:44
No, we haven't done anything.

Alex Ferrari 18:46
Oh, you haven't ment that anything? Yeah. So you're slowly going to be

Cameron Van Hoy 18:48
You just been building our community. So like, obviously, in this space, it's very important to build your community first, it's very hard to just drop something and have it mapped out because you don't have any awareness at first. And the other incredible thing that I've learned about the space is that you're able to build communities of people that want to get in on these whitelists, as they call them, we call ours a hit list, because it's about a hitman, obviously. And so there's real value in getting in early. And so you start getting all of these people that are doing exactly what you're saying. And they don't even hold the NF T's yet. But they're building and passionate about building and supporting and promoting and marketing because having that early access means you're gonna get a lower mid price, right, you're gonna be one of the early adopters. And so we've been able to build out a really large, powerful community like we are one of the leading films in the NFT film space at this point. And, and I think that's because of you know, I don't know what it's because exactly, I think we're doing things right. I think we're using the technology in the right way.

Alex Ferrari 19:49
Well, I think it's also I think, from seeing what I saw of your of your work I mean, it's solid, it's a it's a well, it's Welsh as well directed well shot has a good cast has it's a great genre. So there's, you know, it's not like a period drama piece. Like, you know, it really hits within the niche of people who would be tech savvy, would be interested in a crime franchise. You know, they wouldn't be interested in the dog says, dog sakes that saves Christmas movie. Like that's not probably the NFT ideal. So it is genre based and everything else you I mean you got time so Gordon and your movie, right? I am like the biggest fan of Tom segura. frickin love Tom.

Cameron Van Hoy 20:29
Right! He's amazing. Yeah, he's amazing. We've got Academy Award nominee, Cathy Moriarty, who's got Danny's avato, who's an incredible young actor tilde Kevin Urvi. Putting duress is in the movie. I mean, it's a wonderful cast. It helps us a lot like being able to enter the NFT space and drop the movie and show them say, Hey, this is this is what you're signing up for. This is the team that's surrounding this project that's going to help to spearhead this in the right way. Yeah, it's been really helpful for us, I think we're the first that's done something like that,

Alex Ferrari 21:03
Would you would it eventually, in I'm just gonna like pie in the sky here. Eventually, when the technology gets to where we want it to get to in the in the blockchain and NFT space, would it be simple, it wouldn't be this would be a workflow, let me know I want to just throw it this workflow at you and see if it works. You would create a community based around an IP, whatever that IP is, and you can have images sizzle reel, whatever it is to sell and finance the film through NFT's and smart contracts and get funding that way, make the movie, then release it on the blockchain, where then anybody who buys or rents or accesses it, when they pay all the money automatically gets split among all of the investors and yourselves as a creators, all automatically. And then as new revenue comes in. The smart contracts handle all the distribution, and there is no funny business. There's no Hollywood accounting, there's none of that while and there's no middleman

Cameron Van Hoy 22:08
Is that that's where we're going. And it's all all the systems are in place. The only one that is probably just not profitable yet is the distribution side of it simply because that smart wallet most people don't have smart wallet yet. And they're not operating in this web three world. But what is perfectly in place at this point is communities minting providing the liquidity to the project and then supporting and building together. That's there right now. That's happening. I think over time, as more and more people become native to this yes, then that distribution will we'll probably see a flip at a certain point where more people are connecting wallets to watch things than they are using the username and password to get in to watch stuff. And when that happens. Yeah, it'll be it's going to be awesome.

Alex Ferrari 22:57
But it'll be it's we're still a little while away, because we just need mass adopt adopt, you know, adopting of this technology.

Cameron Van Hoy 23:06
So, and for us, it's important, like, Look, our goal would be to get, you know, like 500 screen release in AMCs for the next year. You know what I mean? Like, and I'd love to see the community like tweeting the hell out of them saying, Hey, we got party ready, let's, let's roll them out name. See, that's a very tech forward thing, you know, with these communities, I imagine a lot of these big corporations and companies are going to want to have a pulse on what's happening with three more and more. So as this continues to grow, and and I want that I want the film to play in theaters. I wanted to play with a major stream where I want it to be accessible to everyone. And I think the community wants that as well. Right? Because that provides more awareness for our project more value back to the community. So we're not trying to say you can only watch it in web three. But yes, but I do believe over time, more and more people will watch within Web three, and then that what you're talking about transparency will become the norm.

Alex Ferrari 24:00
Yeah, it'll become the norm. It's something that's so I think the studio's will be pretty terrified by it. And distributors will be terrified by it, because it kills the basically, you can start I mean, when you imagine if the Rock who could finance a film if he wants to does this and goes down the road all the way and does everything we just said and he pulls in a couple 100 million himself. That's a better deal than he's getting from studios. It's gonna get to that place, I think, I think eventually will

Cameron Van Hoy 24:34
Not only will it get to that place, but there's something new happening here, which I think a lot of people don't recognize, which is NFT's themselves are a new art form. As it's entered here, there are stories being told to these entities, there's games being played for these entities, just the process of purchasing NFT's, making them waken an avatar representation of who you are giving them life giving them names and backstories. And then like purchasing multiple types of NFT's based off of their rarity within collections, and then the groups that are formed around those specific NFT's. And then serums. Many times like with the port apes, as an example, like ours, our version of a serum is gonna be a burner phone, because in the film, the central character uses a burner phone to get their jobs, there will be a burner phone that has a variety of jobs smuggled across the border, take care of this person, be the getaway driver for this job. And you'll be able to mint one of those burner phones, then if you want to advance your character and have tea, you will have to burn the burner phone, which is getting rid of that NFT sucking it off of the market. But then you advance your character. And this sounds crazy to people who are not in web three. But there's a lot of fun in it for people, it's important to new form of entertainment, and game and investing that we haven't seen before. And I think it's a whole other market outside of just the movies, just what's happening with characters and serums and playing them against each other. And where that can go is a new thing. And then there's this secondary royalty that comes into the project from that in and of itself. So you start looking at a franchise, it's something that has multiple verticals, there's the movies, but there's also just the NFT's are a thing. They're more than just a way to provide liquidity to make the films

Alex Ferrari 26:42
Right. You know, no, it's really interesting, because it's it's the equivalent of where we were, you know, again, I'll go back to like, when people were afraid to put their credit cards on the internet, you know, that they were like, that was the technology like now everybody just literally opens up an app and buys whatever they want, and it's at your doorstep. But I'm old enough to remember where there was no internet. That's how old I am. But But during that, yeah, exactly. So but you look fantastic. So so no, but the but I still remember, like people were like I can't, there was like full full news sections. And like, don't put your credit card on the internet. This is what happened. So that was a complication. I think I think that as we move forward, and if these are pretty complicated right now, everything's a little clunky, the technology is a little clunky, you really need to have your tech in order in order to even buy. I mean, Coinbase has helped a little bit if you want to buy Kryptos, it's become a little easier to buy crypto with with your credit card, which that that's only within the last couple, what, two, three years that hasn't been like that way always. So it's becoming a little bit easier. From what you're saying in regards to the investment and you know, getting residual back and all that kind of stuff and gaming within the NFT space. It's kind of like, you know, you're playing fortnight or Roblox or something like that. But the money that you're buying or selling and making is real money, it's crypto. And you can actually use that in real world purchases while you're playing in the web three space. Is that is that a decent analogy?

Cameron Van Hoy 28:23
That's, that's that is the whole premise of web three is ownership. Right? Web two was reading, right? Right, what one they say was just read, you can just kind of dial up and read things when two is username and password to get into a centralized organization that held and owned everything and you can comment like and share posting videos is a two way street, web three is connect your wallet and own.

Alex Ferrari 28:49
So in, in theory, what we're talking about is that a movie project could be for lack of a better word, a stock, a company that you're investing in. And in the, in the grand scheme of things, let's say I'm investing and I want to get a piece of a piece of you know, there's a piece of the residual payments back kind of like dividends. So I let's say I put in $100 is that, you know, let's say this NFT, there's a lot of shares. So it can go around millions of people to purchase it, let's say, then, as you invest, the movie goes out, it's your best interest to promote it because it's your stock, you're part owner of this. So you're gonna put it out so then the marketing costs start to go way down, because now you're putting it all out there. So it's kind of like creating a word of mouth on a project, but you're getting paid for the word of mouth marketing, and then you can invest in that and then as the movie just continues, it's it's it's pace from now until whenever the world ends, and the computer stopped working. There's a residual payment that is set up through the through the smart contracts that automatically win money. He's made, it goes right into your account. And you could start investing into any kind of projects you want. So if you wanted to invest, quote, unquote, into a Marvel movie, let's say the next Avengers comes out and you can invest $100 In the next Avengers, you might be able to pull $100 back out eventually, or vice versa. But it's an a part ownership of the project as opposed to the norm. The normal way of doing things is that there's a studio that owns everything gets all the gets all the benefits of it, and barely even plays the the creators like they pay them upfront, but they generally don't get paid afterwards because of Hollywood accounting, and so on. So is that a setup?

Cameron Van Hoy 30:41
It's democratized venture capital is democratize, investing and ownership is democratizing filmmaking. And like, it's just democratizing these things that used to be so you know, there's no way into them. They were operating these giant centralized organizations, whether it's a music label, or a movie studio or right, you're a clothing brand. I mean, you see a lot of these projects now that are building clothing brands, and people are going to wear those clothing, because the more again, that they're promoting that as they're walking around, that's, it's it's a direct connection to the value that NFT that you hold, which has a marketplace that you can sell it at any time and see what the market is valuing that at. So yes, communities work together and provide value back to themselves immediately. That's the paradigm shift of it all, you know?

Alex Ferrari 31:31
Yeah. It's it's pretty, it's pretty exciting. I mean, it's a pretty exciting idea. Again, some of the things that we're talking about are available now. But not everything we're talking about, because the technology is not there yet. But this is where everything is going. There's no doubt in my mind that this will happen within the next 10 years, if not faster.

Cameron Van Hoy 31:51
No, I think it'd be faster. I mean, we saw all the streaming. I mean, all the Yes, streaming companies, tech companies, social media platforms just destroy all media or bookstores like old retail, it's somewhat what how long did that take? 10 20 years, right? I think this will move quicker. I think web three will rattle those cages, because again, this is about ownership. So if you don't provide that to people, you have a very hard time iterating. And then also your point about communities and the power that they have for marketing? Well, it's it's almost similar what happened again, with the social media phase of web two, where the people who had the followings who got the likes and got the comments. And they were they became very valuable, right? They were the marketing juggernaut now, so much so that most companies want to spend more on that than they are in traditional ads. Right? That's going to be the other shift that happens where people are going to value communities and projects and brands that hold communities. That's going to be the next wave, right? Because once you start realizing like that you can directly receive value from the things that you're supporting and liking. I mean, that's, that's a skin in the game as a drug that's going to be hard to take away from people once they have it.

Alex Ferrari 33:03
Right! And it's kind of like we're crowdfunding was when it started. But crowdfunding doesn't give you any ownership.

Cameron Van Hoy 33:10
Crowdfunding is patronage, you know, crowdfunding is this is completely different than that.

Alex Ferrari 33:15
Completely. Exactly, exactly. It's more like equity crowdfunding, which is like you're getting a piece of the pie by donor, putting money into the piece. And there's a, but this is done, not by contracts, but by smart contracts, which are interesting.

Cameron Van Hoy 33:31
Anyone, you didn't have to trust the company to make sure that the funds go here. It's, there's no, it's trustless it just happens.

Alex Ferrari 33:39
And I think that is how that's going to how the governments of this world are going to allow this to continue is fascinating to me, because they're literally starting to, I mean, once you decentralize money, which is the power of a government essentially used to control their money. Yeah, you know, it's, it's pretty interesting.

Cameron Van Hoy 34:01
I was buying Bitcoin at a very low price. And I was afraid of this every step of the way. I was always I was a big believer in Bitcoin and blockchain but I was every step of the way, just going, they're gonna they're not going to allow this right for that exact reason, right dominance over the dollar. And it's so interesting how all these combos ultimately become like an economic even political conversation certain point because it's such a thing. But you know, they haven't stopped it yet. It's very hard to stop. And I hope they don't because, you know, America has always been strong because we've been able to innovate. And I mean, look what um, tax it right, they gotta get the they gotta get their tax dollars, let them tax it, but hopefully, they let the innovators just, you know, play within the rules, but but, you know, continue to grow and develop,

Alex Ferrari 34:46
I think, I mean, yeah, just El Salvador just made Bitcoin their national currency. So that's pretty insane.

Cameron Van Hoy 34:54
Yeah, yeah, it is. It is for sure. I mean, I think America's stance has been pretty cool with it also. Far scary games there seems to be pro Bitcoin and watching. We'll see how it shakes out. I think it's I think the cats out of the bag.

Alex Ferrari 35:09
Oh, no, you can't you can't put you can't put the genie back in the bottle with this. But now Now we got we got institutional investments into Bitcoin and into crypto coming in I mean, we're talking about like, you know, there's there's funds, there's crypto funds by major, major financial institutions, so they're all gonna get into it. So in we're talking about crypto a little bit guys, because that's kind of like the blockchain is the base, but in order for money to be made, you can't send dollar bills back and forth.

Cameron Van Hoy 35:39
Yeah, through swift systems or through these old systems with middlemen, right, like it's just it sucks value out of it. It's, it's it's friction.

Alex Ferrari 35:50
Exactly. I mean, where you can have a where you can have a crypto wallet that's earning you five to 10%. In Me, I mean, I have I have crypto right now that's earning 5%. That's better than any bank just sitting there. Now mind you, the crypto is a little bit volatile. So that's that's just a little, just a little on the points.

Cameron Van Hoy 36:11
But you know, there's another cool thing to speak about as well that's happening. It's also a paradigm shifts and a revolution outside of blockchain, which I think is two things happening in conjunction with each other as enabled. What's going on here to be so strong, which is Twitter spaces, Discord, right? It's again, it's the communication, it's the ability to communicate. But within Twitter, there's these things called Twitter spaces, which is so much of the in the NFT world called Alpha sounds like such a general I'm a film guy just talking at a theaters now. But you know, people get together in these Twitter spaces, it's like clubhouse, and they're talking. And they're just communicating, sharing ideas. And that ability for us to share ideas so quickly. Just communicate and like work together and pick up on trends and execute on those trends. Is fire right? It's really amazing. And then these these platforms like discord that allow communities to be whole and work together and organized with channels and like execute on things as groups, but from around the world. I mean, Twitch at this point has a team of filmmakers, Blockchain developers, collaborators and marketing people, devs, moderators, mods, I mean, just so many people from all over the world, and we are every single day like it just doesn't end it becomes like hive mind, where there we're using the discord as the centralized operating space. We did a table read for someone else's screenplay and a lot of directors writers people send me their scripts to look at and now my go to is always just jump in the discord get involved. So we've always called filmmakers that are jumping in there. One of them wanted me to read the script. I said, let's just do a table read with the community. We can talk and get it from the community right. And so they they jump in, we cast out of the community with one of the actors from flinch and amazing actor Michael Dreyer has been everything he came out, read the lead role in it. And then like the rest of the community was like, filled out the other roles. And we read this person's screenplay and gave them some feedback. And for them to hear it. We did it just like we're doing right. So it's like, we're working together to build and support each other. And that communication, that connectivity, coupled with like live value, whatever you call it, like the NF T's being able to, in live let the market determine the value of what it is that you guys are doing as a group. It's just wild.

Alex Ferrari 38:37
Yeah, it's pretty insane. Now, I also saw that you guys are doing practical, or real world products, like VHS and a couple other things. First of all, where do you get your VHS? And how are you getting done? And secondly, how is that connected to the NFT space?

Cameron Van Hoy 38:56
It's just merch. Yeah. Collectibles. So yeah, we made a VHS. We made a VHS. We've made VHS. VHS. We made a tape cassette. Yeah. And it because it has like a digital download. So you can also get the soundtrack digitally our soundtracks done by Miami knights 1984 One of my favorite synth wave groups, awesome. Fire. We've got CDs, posters, shirts, like and the community just bombed them and loves them and is wrapping them. So yeah, it's just it's merch like anything else.

Alex Ferrari 39:37
You know, it's connected but it's connected to NFT's as well. You have to buy NFT to get it or how's that work? No, no, just normal normal just normal merch. Merch is just accessible. So where do you get your Where did you get your VHS is paid. I have to ask.

Cameron Van Hoy 39:49
There's like one VHS manufacturer left in America. I think they're in America. Again. You want to remember off the top my head. But we dealt with that. Oh, we did a vinyl Press two we have vinyls of the sound. Yeah. Right. It's also tough to get like a good vinyl press. There's not a lot of companies that

Alex Ferrari 40:07
For independence, but like as I see vinyl everywhere now,

Cameron Van Hoy 40:11
Maybe for independence, I don't know. For us it was there was back halt, you know, and everyone was back halted, when might it be a COVID thing as well.

Alex Ferrari 40:18
But that's really that's so and it goes along with the kind of film you're doing. So VHS makes

Cameron Van Hoy 40:24
The movie, the movie flinch has a very 90s vibe to it. Right? It's like, it's got that vibe, and like a crime film from the 90s, you know, an era and a genre that I personally love. And so all of this plays into the aesthetic of the movie.

Alex Ferrari 40:39
Yeah, that's, that's awesome, man. Now, at the end of the day, what's the goal with the NFT's and the community, you just want to build out two more films. And then let's say let's say you get the other two films done. And you've got a three part you know, trilogy, what next? What do you do with this? One that's all played out? What do you do with this community?

Cameron Van Hoy 40:58
Now the goal is to do a full year, and then let the community just run wild with it.

Alex Ferrari 41:04
It's not just about Flint, you're building a community based around projects that you want to continue to build out and build out as a community.

Cameron Van Hoy 41:12
So I want to see flinch, go on and become this kind of epic crime web three franchise that was birthed of the metaverse, but enjoyed by the world, that the community is constantly adding to I think very soon the future is going to be like imagine a writer who wants to write for film and television now and they're not they're not in the film business, what do they have to do move to LA New York, write spec scripts, try to get an agent try to get them in front of people making these TV shows and movies and then get hired on to be a staff writer get their thing picked up to be turned to have. So I think the future is going to be binding 50 to a film franchise get in right lower for that franchise, get involved in the creative process of the franchise, get hired to write part eight of the franchise, and then maybe direct part nine, you know what I mean? Like you're gonna work your way up within these communities that you're actively involved in that you understand the lore and the characters of we're already seeing it and flinch. All sorts of creative people are coming in, that are actors and writers and directors aspiring or working and going, Hey, like, Let's build this together. And yeah, I'll read a role here. And can I put myself on tape for that? You know, and I'd like to write some lore for this character, I have an idea for part two. So I think it'll, I think it'll continue, I think that's the plan is that it becomes, it takes on a life of its own so much to the point where I can step away and go do whatever it is that I want to do next. Outside of the flinch thing, although my focus now is executing this successfully. But yeah, that's that's the vision for it. And that's why you give people IP ownership, so that they can spin off. Imagine a world where the way that like Blumhouse wants to go to a Halloween movie, they have to negotiate the rights for Halloween. Well imagine a future where they could just buy several NFT's from these characters and make films around those characters within the universe of free lunch. Right? If a studio wants to build a mini major, like, who knows, maybe it'll get there to that point where this IP has such value that people are, you know, you want to make your first film as a first time filmmaker, make it with in a franchise that already exists that you own an NFT and, you know, like it's it's kind of a different way to think about it. But I think you can get there.

Alex Ferrari 43:23
No, I agree. It's like, well, it's kind of like what Stephen King does with his his short films he gives you you can license his short films for $1 and make a short film out of it. I didn't know that. Oh, yeah. See if it's he's been doing it short stories, any of his short stories that are not already licensed, or you know, sold. You can license it for $1. And all he asks is that you send him a copy of it when it's done. So then you can so you can you can direct a Stephen King short film to get your stuff go. So it's a franchise, which is Stephen King's cool. And he's been doing that for, I don't know, 30 years. I mean, Frank Darabont did one when he was starting out that's how old this this Oh, yeah, that's how we got started with with Steven was Frank Darabont did the one short film for and Steven loved it and then he came up in the business and he called up Steven again. It's like, Hey, can I can I look at that Shawshank Redemption thing.

Cameron Van Hoy 44:20
Well, that's, that's awesome. And the man's a genius clearly, and that's what this tech is enabling. I think that's where these call them NFT franchises are gonna go. I think creative people, aspiring filmmakers and working filmmakers. I mean, imagine when a really cool filmmaker with a track record comes in and does Part Four on the franchise for us. The community hires someone dope to come in and take over the you know, it's like, and they take their crack at it. Like I think that's where this can all go. I hope it's work goes That's certainly what I'm gunning for.

Alex Ferrari 44:52
Yeah, it's really it's a fascinating placement. It's a fascinating it's a fascinating thing that's happening for independent film and I agree with you at this point. Probably the most exciting thing to happen independent film. This is worth it since I don't I mean, cat since the 90s. Essentially.

Cameron Van Hoy 45:10
I always say this, like the revolution isn't in digital technology. Everyone's like, oh, anyone can get a camera and make a movie. Now we've had that for 30 years. Yeah, I mean, like anywhere people are cameras are accessible. The revolution is going to be in this distribution and financing. We can make these things outside of the centralized systems, and hopefully, wonderful originality comes out of it, you know.

Alex Ferrari 45:32
Right, because you don't have

Cameron Van Hoy 45:34
Studios or they're afraid of originality. You know, they're afraid of everything.

Alex Ferrari 45:37
They're afraid of everything. And nowadays, you can't say anything, you can do anything. And you can be as outlandish as you want. You can go as far off off the reservation as you want on on these projects, because it's the only person you're beholden to is the community.

Cameron Van Hoy 45:53
By the way, that's what's working in this space right now. Anyways, okay, we're not seeing the Looney Tunes NFT's popping off, right? It's doodles, it's board apes, it's ZooKeys. It's like, you know, kaiju kings, it's original things, because they're able to provide ownership to people, it's when you provide that ownership, that you rally communities around them. And so we're already seeing the birth of originality. So I think it's going to be really exciting. As more and more films and filmmakers come into the space and use this tech in this way. The originality is going to be off the charts against the like the 90s. Again, we're just we're going to be come out with bangers left and right. That was dope, you know,

Alex Ferrari 46:34
Back back in the day was with me back in the day in the 90s. I mean, it was like every month, there was a new there was there was there was Robert and there was Tarantino and there was burns, it was Spike Lee and, and the list just goes on and on the list goes on the course, like every month. So it's like Aronofsky and like,

Cameron Van Hoy 46:55
Just like everybody weird little franchises like spawn and like the way of the god and like just

Alex Ferrari 47:03
Yeah, it was the wild wild west. Yeah, it was, and they could do and they could do whatever they wanted. Because it was kinda like what happened in the 70s when they when they let Spielberg and Lucas and Coppola and all those guys. They're like, we don't know what the kids want. You guys go all out, we'll give you the money. And that's basically how that all that cool originality. And now we're gonna get to that place as well. I have to ask you. So let's say a filmmaker wants to start this process. I got a project what do I do? How do I start this whole process like what you did?

Cameron Van Hoy 47:35
Well, you got to learn you got to you got to take the time to learn went through. Right. That's the thing is you have to and there's a lot of people that hate it's okay, I see vitriol in people's posts, even celebrities post about it. Like our artists who did our art is a very popular artist online. She's got a big following. For a long time. She's incredible talents, fetish Avena kindred are NFT designs. And she when she posts about it, like there's so many little NFT we're gonna hate you, you know, like just vitriol. And so I would just encourage anyone to like can't try to look past that look past the hype. There's a lot of crazy hype, we hear these stories about apes JPEGs, selling for millions and millions of dollars. And it's just like, what, and explore what the technology is, that's the first step is exploring, getting involved getting jumping to our Discord, just meet the people in their talk, you know, like try to take the time to learn it. It's probably one of the best investments that you can make in the world today

Alex Ferrari 48:34
Understanding the web, the web through space, but also then to just getting a general understanding of blockchain getting a general understanding of crypto if you don't want to read there's a ton of documentaries really great Doc's about this

Cameron Van Hoy 48:47
YouTube videos of the best authors. It's our matrix that's like plug in the back of your head and just like get like, just everything has culminated for us to just like have this leap this quantum leap as a society between blockchain communication those YouTube videos, I've learned so much from YouTube videos, if you can just like Be your own algorithm and like kind of search what you need and put the keywords and fine and then you get all the info that you need. I that's that's how I did a lot of my education in space was YouTube videos.

Alex Ferrari 49:18
Yeah, and there's and there's documentaries on YouTube about these spaces as well that just kind of like feed you're gonna give like a 30 minute doc on blockchain real produced because I watched all of them. I literally watch almost everything. I literally went and like for like three weeks I just went and just got I went down the rabbit hole on crypto and down the rabbit hole on blockchain and really tried to and I read books about it. And I really tried to understand what was going on with it because it just seems so exciting. And then it's like, okay, we're not there yet. But again, it's just like the internet circa 1990s. Man, it's just it's worth it. We'll get there. We see it. It'll get there much faster than the internet. It'll get there much faster than that. Stream ended,

Cameron Van Hoy 50:01
I think when you see what people are building in the space and the amount of value that's being created around projects, right? I think the creation phase is here. And I think it's just the early adopters are going to have a leg up because they're in a building. Right? So I think there are certain brands, many that are being established in the space that are going nowhere. They're going to be here for the for a long time. So yeah, I you know, I think it's happening.

Alex Ferrari 50:29
Now, I'm gonna ask you a few questions. Ask all my guests, sir. What What? What advice? Would you give a filmmaker trying to break into the business?

Cameron Van Hoy 50:36
You have to put all of yourself into it. You can't, you can't dip your talent. Really want to do it? You have to go on.

Alex Ferrari 50:51
What what is the lesson that took you the longest to learn whether in the film industry or in life?

Cameron Van Hoy 50:55
Make sure you have a really solid second act.

Alex Ferrari 51:01
This is as you get older, you you start thinking about the second act. You mean, like in life, or in or the actual project? And three of your favorite films of all time.

Cameron Van Hoy 51:15
Godfather one, Godfather two,

Alex Ferrari 51:18
That counts as one.

Cameron Van Hoy 51:20
I agree. I don't know. Apocalypse Now is coming to mind. So Coppola stuff. And then also third, it's impossible to say I guess, easy, right? It was very informative, for it was like a big part of my life, even though I wouldn't call it a favorite film. But it's one of those.

Alex Ferrari 51:39
It's one of those movies that when you watch it, it hits you. Especially if

Cameron Van Hoy 51:43
Yeah, that's the independent spirit. You know, like that charged me as a young man.

Alex Ferrari 51:48
That was the movie that scared the hell out of the studios with that came out and that was like a three or $4,000 movie or something like that, at the time, and it was going to completely independently it made millions and the studios were like, making Heaven's Gate. You know, like making bottling complete bombs, like wait a minute, we got to let these kids these kids know what they're doing. Let them go off. So and where can people find out more about your NFTs and what you guys are doing with Flinch?

Cameron Van Hoy 52:18
flinchthemovie.com is probably the best source for our Twitter Flinch NFT.

Alex Ferrari 52:24
Cameron has been a pleasure talking to NFT's in crypto and blockchain and all sorts of geekiness with you today, brother. Thank you again, man. I appreciate you coming on the show and helping you know hopefully inspire some other filmmakers to go down this space because it is an exciting space and that's why keep keep doing episodes about different aspects in different ways people are using it because there's not just one way there's multiple ways you can use this technology to to make your movie so I appreciate you my friend.

Cameron Van Hoy 52:53
I appreciate you and all that you do. I love I love the hustle and really glad to be here.

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IFH 489: Using Blockchain to Make Money With Your Film with Kim Jackson and Jake Craven


Right-click here to download the MP3

Learning about new and improved ways to navigate archaic structures in our line of business is always very interesting. So, this week, I wanted to take you on a deep dive into blockchain entertainment financing — refined by entrepreneurs and producers Kim Jackson and Jake Craven of Breaker.io.

Kim is a member of the International Academy of Television Arts & Sciences, co-owner of SingularDTV, and CEO of its umbrella company, Breaker Studios, where Jake serves as Vice President of Content Partnerships.

Breaker, founded in 2017, is a leading blockchain development and services company in the Media & Entertainment industry. It provides an innovative, intuitive, and user-friendly end-to-end royalty management platform for independent creators and distributors. Simply put, it uses blockchain and cloud-based technology to enable creators to maximize their revenue by automating revenue collection, backend accounting, and royalty payments while ensuring transparent reporting. 

I discovered Breaker when I stumbled upon Alex Winter’s award-winning feature documentary, Trust Machine: The Story Of Blockchain produced by Kim. Trust Machine trailerThe film explains how Blockchain technology is already being used to change the world, fighting income inequality, the refugee crisis, and world hunger. 

If you are new to Blockchain or have felt overwhelmed by all the information Google threw at you in an attempt to learn the rudimentary theory of Blockchain and cryptocurrency, check out Vinay Gupta‘s ‘A Brief History of Blockchain, Kim referenced during our chat.

Breaker’s concept is definitely the future of entertainment finance and, dare I say, global financial transacting. Being ahead of its time, Breaker is introducing products that allow for media revenue and royalty to be tracked via blockchain technology, which allows for an open-source network of data.

Basically, Breaker provides a better model for instantaneous recording and eliminating mistrust, especially for independent companies that want to sustain a business and revenue model for themselves.

I wish we had more time to continue the conversation because it was packed with filmtrepreneurial and blockchain knowledge bombs, and we could all do with the extra crash course. But I made sure to ask many important questions for you guys from today’s experts.

So, enjoy my conversation with Kim Jackson and Jake Craven.

 

Alex Ferrari 0:01
I'd like to welcome to the show Kim Jackson and Jake Craven. How you guys doing?

Kim Jackson 0:19
Great.

Jake Carven 0:20
Doing great.

Alex Ferrari 0:21
Thank you. Thanks for coming on. You guys are doing some really interesting stuff with your company breaker. And I saw them film by Alex winter about blockchain because I've now obsessed about blockchain pretty heavily and about NFT's and all that kind of good stuff. And, and then you guys reached out to me, and I was like, Oh, interesting. I like to see what you guys are doing. So for the audience who is not familiar with this new magical world, that is blockchain and crypto and tokenization. All this stuff. What is blockchain?

Kim Jackson 0:59
Wow, that's a ginormous question. So in relationship to media and technology and film, we'll I think we'll put it in that context.

Jake Carven 1:11
Sure.

Kim Jackson 1:12
Jake.

Jake Carven 1:12
Right.

Kim Jackson 1:12
Well, seeing that avenue.

Jake Carven 1:14
Yeah.

Kim Jackson 1:15
But essentially, blockchain is the technology that what we're all familiar with, as Bitcoin runs on, right. So Bitcoin is a cryptocurrency. And it operates on blockchain technology. So it's a at its simplest form, it's a protocol that runs programs. And so at a basic level, the programs Oh, that's why they're different than centralized systems is because this network is called decentralized. And that means where there's network, there's data and where there's data, there's network, unlike centralized systems that we currently work with. So when you apply that to basic concept to certain, maybe challenges and problems that different industries, like media, and film and television have, we have been building and are launching products that allow for media to be, you know, rights, revenue and royalty of media to be tracked via blockchain technology, which allows for a decentralized network of data. So I'm going to stop there, because Jay can go a little more specific into what breaker is, is building from that more general description.

Jake Carven 2:43
Yeah, thanks for a good intro into the big picture of blockchain. How I like to refer to someone's asking what is blockchain? What is a blockchain? It's really just a record of information. Right. And what makes it different from other records that we use, if you think Google sheets or Excel, or just databases, right, is that when when you enter in a new row of data, that information is encoded, so that nobody can go in and change the information later. So it's locked in place and set in stone. In addition, instead of the data being stored on one person's hard drive, or one company's servers, it's held and hosted, maintained by hundreds of people all around the world. So when we say decentralized, it's what we mean, it's there's people all over the world that are hosting and maintaining this network. And this is a record of information. So no one party is in control of that information. And it's all open source so that anyone at any point can go and view this record, they can pull up a website, and you know, put into information and actually see, you know, proof that information was logged and entered into this record. Now, it's all done using, you know, cryptography and long numerical chains that the average person can't decipher, or any person can say can decipher really. But what it does is it creates this opportunity where when you have data that's coming in from one source, instead of that data, just living on someone's computer, and then some human is like entering data and changing the information and sending it via an email. That information is automatically recorded and set on this public record the blockchain that people can go back to.

Alex Ferrari 4:56
So to simplify it is basically a database That has pages in a ledger, those pages are blocks inside of that chain. And they're hosted cop, there's 1000s of copies of that exact thing around the world. So even if you hack into my computer, and, and you know, try to do something, you can't, because there's multiple copies all around around the world, that could be verified by 1000s. And 10s of 1000s of people around the world as this continues to grow and grow is essentially and you can't adjust. And then like any chain, if you block it in the next chain, if you affect this chain, it will affect the rest of the entire chain. So that means it's literally locked in stone, digital stone and cannot be adjusted. So that's the security aspect of it. Is that a fair explanation?

Jake Carven 5:47
Yeah, absolutely. And I think I think most people, most people, you don't need to be tech savvy to, to, you know, reap the benefits of this or to appreciate how all this technology sort of works. You know, I think a lot of times, especially with the blockchain world, we kind of get a little too, we start talking about all the tech and code and all that stuff, when you know, really think of the internet and email, don't need know how email works in order to like, reap the benefits of email. So, you know, there's always this sort of element of the blockchain world where things get too technical too quickly. But we try and just break it down into kind of very clear concepts. And I think that's, that's an important element of just understanding that normally, when you send an email to someone, the record of that email is being held by the company who owns your email address, right? The email server like Google, if Google were to cease existing tomorrow, you would lose all of that information that's on your email, because it's stored by this private entity. So what blockchain does is takes that data and puts it up in a way where it's not subject to like one private entity who can take and use that information however they want or just disappeared, delete it.

Alex Ferrari 7:06
Fair, fair enough. Now, there are obviously the the origination of blockchain was with Bitcoin, and Bitcoin coming on. And that's when the whole concept of blockchain came to came to be, I think, in 2008 and December of 2008, if I'm not mistaken, and there are multiple blockchains out there because a lot of people think there's just this the one blockchain there's multiple blockchains out there, Bitcoin has its own blockchain, which is based around its cryptocurrency. But then another blockchain came out, which is arguably the silver to bitcoins gold, which is aetherium. And aetherium, was created as a blockchain not as much for money, though it has a component of that, but as a platform to kind of piggyback on is that, is that correct?

Kim Jackson 7:54
Correct. Yeah, it's its intention is to have more functionality and more dimension than just operating currency, which is Ethereum is the is the operating protocol that we're building our applications on top of

Alex Ferrari 8:12
now with, with Go ahead,

Jake Carven 8:16
I was gonna say, to go back to your analogy, instead of saying the theorem is silver to bitcoins gold, I think a better way to think of it is a theorem is the oil to bitcoins gold, because well, Bitcoin is a, you know, an asset that can be used as currency. Fair enough theory is, is a system for running applications and to be built upon.

Alex Ferrari 8:39
Now with that, with Ethereum, you because there isn't a monetary aspect of theory, there is an aetherium coin, which runs everything. So with, with the theorem did some of the issues that I've been hearing and seeing myself in the NFT world, is that it takes a long time for these things to get all these all these processes to get registered, because it takes time to physically get it on there. Also gas fees and things like that. Can you talk about that? Because that kind of goes into a larger conversation about what you guys are doing? And how are you going to kind of, because we're at the beginning, where I've been telling people there's like, we're basically in the internet 1994 right now, there, people are still trying to figure out how to build a website, people are still trying to figure out JPEG, because it's that, you know, I remember downloading an image that took four days to download one picture because no one understood JPEG yet. Things like that. Were in that world right now. So there are these kinds of issues that and that we're all figuring out and will be figured out in the next five years, if not faster, because there's so many people going in there. But what do you think? How do you approach and I can you explain gas fees and the speed and things like that with aetherium? Because there's just so many people jamming into it.

Kim Jackson 9:57
Jake

Jake Carven 9:58
Yeah. In order to understand, you know, if you're someone that that, listen to this and you're not familiar with sort of how blockchain actually works, when we say we're recording a new piece of information or data on the blockchain, what we're doing is you're submitting, let's say, transaction with this data. And then there are all these people that are maintaining this network in order to get people and this is what makes blockchain innovative, is, in order to get people to actually maintain that network of information. And to update it, you have to incentivize them, right, they're not just going to do it out of altruism. And because they like the idea of a decentralized network of information. So they have to get paid to maintain all this, right. And so they're just using computing power and their computers. But what happens is, they get paid a fee to update the blockchain to record your data, right, like you pay a fee for a notary public, if you will. And so those, that fee is what's called a gas fee. So when you go to transact blockchain, or you're going to use an application that is interacting with the blockchain in some way, you have to pay a gas fee in the form of cryptocurrency that goes to the individual who's actually like logging that transaction. So that's what keeps the system going. And moving forward, as you know, people are being incentivized because they're getting paid to do it. And, and that's, that's what we refer to gas fees. Now, there's a lot of development that's taking place and a lot of different approaches to blockchain technology and updates, the original mechanism of it was built in serve one purpose, but it had limitations. Were at a phase now where there's a lot of updates being made and switching to some different systems that are more efficient and cost less and are faster. And those are going to be implemented. And some of them are already implemented. Some we're going to be going in the next year, a couple of years. So the whole landscape is changing pretty dramatically right now in terms of just like the nuts and bolts and how of how it works. But for us, the key thing is looking at just that underlying the value proposition of just a blockchain and then this core concept that of what we like to call tokenization. What is tokenization?

Kim Jackson 12:35
Well, Alex, I want to say one thing. You have it, right? It's early days, it's like 1996 in blockchain right now. So it's like the dial up date. Oh, settings, take

Alex Ferrari 12:47
money for 100 bucks. 2400 baud? Yeah.

Kim Jackson 12:49
Yeah, exactly. So it's very, it's a very early, it's still early days. It really, really is. And so, you know, the, the architects of Ethereum are well aware. And they are, you know, they're there. You know, I listen to conversations on clubhouse that, you know, they pop in and out of, and, you know, they're, they're very much aware and their solutions that they're working on, and they're very confident in the future of the etherium protocol, being able to handle the number of transactions that would would be necessary for it to work properly for the general public. Just like the internet, you know, had to figure that out, too. So, yes, so you know, it's, it's, it's definitely a good horse to bet on.

Alex Ferrari 13:39
No, exactly. It's like, if you would have told me like, you know, this internet things really gonna take off. You know, I mean, I still remember dialing, you know, logging in with my AOL free disk that I got, yes, I got my free connection to the Internet.

Kim Jackson 13:54
Made the sound on sound effects. Oh, fantastic. It was, you know, you couldn't wait and we just sat there and we waited and a little chat rooms would come up in the windows, you'd be talking to people in like Vietnam and it was just like amazing Thai was was exceptionally good, incredible. Time. And then you had I put in my name and didn't work and you know, getting your email address. For the first time in a while. I tried like a zillion things. And then I ended up putting some really random thing in there. Just like, okay, I give up. And then of course, it took it so then that was my AOL. I Oh, well, address was something weird and random for a very long time. Yes, it's sort of like that. And, um, I recommend this really great about 25 minute video that Vinay Gupta recorded some years ago that essentially talks about the history of computer science leading to blockchain. And it is super, super important, especially those who maybe came a little bit later in the game and don't maybe have holes in their knowledge of computer science. Leading up to today it was extremely it's like one of those things that we have a required viewing for people who work with us. Because it's very important to understand this moment in time of computer science, which is where we are, which is extremely exciting.

Alex Ferrari 15:16
No, exactly. Please send me a link to that. I would love to put that in the show notes for everyone to watch as well. But I feel I feel that blockchain is as important if not more important than the internet. And it's just such a that's such a that and that is such a massive statement to say, I'm not alone in that, by the way, I'm sure there's many I think both of you agree with it. It's, it's seeing the vision of work and go it's not there right now. But seeing the vision of where that can go. They mean cryptocurrency and we could talk about cryptocurrency, and that is a long game. It's a long in 100 years, we're all going to be dealing with some form of cryptocurrency. I mean, the dollar paper money and all of that, is it. I don't I don't think that's going to happen. I mean, it keeps going for the next 100 years. I think that's very archaic way of doing things. This is and I think that the D five movement and the decentralization and all that stuff is great. But Jake, remind me Did you? Did you answer the question on tokenisation? No, okay. Okay. Okay. I was, I was like, I don't remember him answering it. So took a decision, because I don't know, that's a big part of what you guys are doing with breaker.

Jake Carven 16:22
Yeah, so you to bring it all back around to film and entertainment and how blockchain can be used in the entertainment industry. You have to think of this concept. And this is what when people hear of NF T's or they hear of, you know, different companies and tokens, what we're what we're really talking about is taking a piece of intellectual property and creating a digital identifier with it, which is what we call a token. So it is a unique code that is an address that is recorded on the blockchain that is then associated back to that asset. So what we're doing is taking, let's say, a film, and creating a digital token that represents that film, and the ownership shares of that film, same time. So instead of having just like a contract, then each person has their copy of the contract. And, you know, you kind of have to rely on attorneys to confirm all that. And then some, some accountant will look at it and determine, okay, this person gets this amount, what you're actually doing is you have this digital identity identifier that's recorded on the blockchain. But with that is in associated smart contract, which is another key concept in the blockchain world, which is you're taking the terms of, let's say, a film finance agreement, and you're turning it into a logical formula saying, if X amount of dollars, then it goes to this person, then any money after that goes to these people. And so now, when something happens, let's say there's a transaction or someone sends money to, or records it on the blockchain via a platform, that token, so the asset, right, the money flows back to that address, it's associated with it tied to that address, and then the code based on the smart contract knows how to then to split up the money and who to send it to automatically, because of the terms that you put in place. So what we're doing is looking at how we can tokenize an asset, right, take intellectual property, create a digital token that represents it, and the shares and the back end, and then also apply a smart contract where we can then automate the flow of revenue and the management of rights for that underlying asset

Alex Ferrari 18:48
in a complete transparent way where anybody can go in and look at it, as opposed to the shady world of distribution today.

Jake Carven 18:58
So instead of relying on, you know, an entity where it really comes down to some, you know, accounting associate, manually putting numbers in a spreadsheet, and even if everyone is acting with the best of attention intentions, they're still going to put you know, run the formula incorrectly or miss human error type number, you know, all this stuff, and it just so much error and so much money is lost, and, you know, all because of the sort of human and, and really archaic methodology and practices for entertainment, accounting and rights management, which is really hasn't changed since this all started in the turn of the century. Alright, so this, you know, a way of bringing this new technology to create more efficiency, automation, transparency, for what is otherwise a very inefficient process.

And that is your so some key elements that you Using our tokenization and then smart contracts, can you go? You mentioned smart contracts? Can you explain the smart contracts are to the audience?

Well, yeah, smart contracts are really, it's a set of code that is embedded on in the token. But really what that code is, you're taking the terms of an actual paper contract that you sign, and then taking the logic of like the flow of funds and who receives what and when, and then applying that into actual, like, logic, like math of. And that's what smart that's really all a smart contract is it's that logical formula, that is reflecting agreements between parties that are done outside

Alex Ferrari 20:45
like the waterfall, it's normal waterfall funds, yeah, on the back end, correct. First in like first in financers, get first monies in all that kind of stuff. But it's broken up through using basically smart contracts and blockchain. So when a happens, then B happens, and then once B is done, then it goes out to C, D, E and F. And then you can just lay out however you want the smart contracts to play out, essentially

Kim Jackson 21:09
correct so that when revenue flows in to that token, from the external sources, it automatically will get split into those buckets that you know, you know, this this shareholder that shareholder that member this, you know, that you have your writer and your director or your let's say, you know, you have guilds that need you know, all of it, you can do all all of the anyone who's sharing revenue, in a particular piece of content, or intellectual property. It will automatically when revenue comes in the revenue be pushed into all of those

Alex Ferrari 21:46
different entities. Because right now, there are a handful of companies around the world that do this but in a manual way, not an A and I have had those those companies on the show have spoken about that sounds great. Like they make sure all the you know the the unions get taken care of and, and all entities are very comfortable with that, because there's a centralized kind of almost escrow account that handles the money that has not been handled by anybody else. And they know that they're going to get paid because this entity is going to do it. But the way you're proposing it would be essentially humorless, in the sense of it's going to be set up in a completely transparent way where you can literally log on, check the check your site and go Okay, this is how it's coming in. But the question I have for you is, this is all of course, based on blockchain and cryptocurrency because that's how these these payments have to be moved through has to be moved through aetherium. cryptocurrency, correct. I mean, you're not writing checks, essentially, are not doing wire transfers, or are you

Kim Jackson 22:43
know, no, there is a mechanism that it can be turned into Fiat. It can be turned into, you know, USD. And so we're using a stable coin in this case, so that that deals with the fluctuation that will happen right with cryptocurrencies. So, you know, when revenues come in and something gets, you know, pushed into the token, it will be pushed into the stable coin. And then those stable coins can be held on to or transferred into, you know, exchanges,

Alex Ferrari 23:16
however you however you choose, so that, when you say stable coin, is that an actual name of a coin? Or is that just a generalized name of a coin that you are creating, to make sure that that if $10 comes in $10 comes out, as opposed to $10 comes in Ethereum bombs, or explodes? And then they got $100. Or

Kim Jackson 23:35
no, we didn't invent that. Okay. It's it's a mechanism that, you know, others it's an issue, right? That's a problem, right? You to pay people in crypto, just playing crypto, I mean, it's gonna rise and fall in a millisecond. So So how do you deal with that? So, you know, it's been figured out and, you know, Jake, you can shed some a little bit more light on that one, because I know you're, you know, we're working on our SaaS product right now. And, and that's one of the mechanisms that we use, but no, we can't take credit for.

Alex Ferrari 24:04
Because I've seen that, but there was a point that's a USD coin that's just basically tracks. So that's the point you're using, essentially.

Jake Carven 24:12
Yeah, so we use usdc. There are a number of other stable coins, but the core idea is, you know, it's getting the benefits of, you know, sending funds via the blockchain and but without the volatility or the risk of interacting with cryptocurrency, so it's tied to the value of the US dollar. And, you know, what we really look at is, and this is something that we encounter, you know, there's a lot of companies that have been in this space that came around, we've been doing this for a lot for a while now, men have really learned what are the pain points and some of the limitations to really for broad adoption of this technology. And so we build tools, taking those learnings and applying that. So you know, when you're a filmmaker You need to be able to exploit your film, anywhere where there's a revenue opportunity, right. And there's only if the number of avenues that you release a film is just growing, right? Because audiences are more spread out, there are more new platforms every day. And it's important to be able to, you know, reach those audiences wherever they are to find those opportunities to have your film stand out. So we've built a tool that we call it an on ramp, right, like fiatter, crypto on ramp, so you're able to collect payment in dollars, right? Usually, it's processed via bank account transfer, so a ch. And then our technology automatically converts that to a stable coin. And by doing that, once the funds are in a stable coin, then they can be sent to the film's token. And the smart contract can then do its job, send the funds to all the different participants, and they can then claim their share of the royalties and the revenue immediately. Right then in there. So we look at this sort of full chain of funds, and and how do we make it as smooth and easy as possible, while still still actually getting the benefits of the technology? At the same time?

Alex Ferrari 26:20
So and then. So let's say you have a Netflix deal, you've got some transactional on iTunes, and you sold Germany for a few 1000 bucks, let's say you did all those three things, you would basically have them send checks or wires, essentially into a an account that then automatically turns them into a stable coin.

Jake Carven 26:42
Well, yeah, so what it is, is you will in one way to think of the to kind of step back, when we talk about tokenizing a film, think of it in the way that we would go about and create like a ppm, right? If you're trying to raise private equity for a film, you need a private placement memorandum, which breaks down what is the equity structure, what is the person who's investing in the film, getting all that sort of stuff, and tokenizing, the film is taking that waterfall, putting it into the smart contract and deploying that. So it's recorded on the blockchain. So now you have this token that has been deployed, it's in place, and then begins time to like, Alright, let's start collecting revenue. So for Netflix, and if you're releasing from on iTunes, you're like going through an aggregator or distributor, those payments, most likely are going to come the NAC h transfer, right? A direct bank transfer. And so we are you, a filmmaker can then share the link to our payment portal, if you will, and that that distributor or license or can then submit, you know, remit payment, VA ch directly on that, and that those funds will then be automatically associated with the filmmaker with that film. Right. And so all of the like, you know, the manual, all the like, the counting stuff is all happening behind the scenes automatically, that international, probably, you know, there's a good chance that that might come the wire payment, but also, you know, bank transfer. So we're looking at, you know, how are the ways that filmmakers actually get paid today? And how can we evolve this technology to be able to

Alex Ferrari 28:26
address those different use cases, and you as breaker don't hold any of the money coming in. Because that's been one of the big issues with aggregators and things like that, that they hold the money and might miss spending money, money comes in automatically, with instantly once the money hits that account, turns into a kit at the stable coin, then goes down the waterfall into the thing, you guys never touch anything regarding. I mean, obviously, regarding whatever the payment is for your service might be taken off the top or there's a pain. I don't know how that works. How do you make money with this all?

Jake Carven 29:02
So I mean, we're providing this service, right, it's a software as a service. So you know, there's a mechanism of people, you know, paying for via, like, you would pay for any technology that you use. Got it. And so, but the goal, the the core goal for what we're doing, and this is something that goes back to something that you brought up, collection account management services, and one of the big, the big cards with them is that they are expensive, very often prohibitive, especially for independent film. So, you, us using this technology allows us to provide this service to creators at a much more affordable rate. Right then the legacy systems that are in place today. Very, very cool.

Kim Jackson 29:48
And then, you know, another goal that's worth mentioning here, is that, you know, is to have everyone in this ecosystem participate With blockchain technology utilizing this, so not just the content creator, but also the media companies who are distributing the work, because we talked with a lot of them, and we are approaching, you know, a lot of them at the moment in very exciting conversations because they're backroom accounting is extremely inefficient, cost them millions and millions of dollars, and they lose millions and millions of dollars all the time based on just either error or error, you know, error in accounting, or just the inability to really track stuff, especially when you start getting complicated with multiple, you know, territories that you can imagine a piece of content will go to especially like, you know, Netflix now and all across the world. So the long term goal is to, you know, really have everyone participate in, you know, with this software and building a bridge between the, between the two, because it can benefit both sides. It's baby steps, and it's it's new. So, you know, everyone has to start to get comfortable with the concept of telling the truth.

Alex Ferrari 31:16
Anyone who's anyone who listens to my podcast understands my feelings in regards to traditional Yeah.

Kim Jackson 31:24
Right with you all, it's one of the reasons that this is happening is is I got tired of being shortchanged, I get tired of not having revenue reports, not being able to report to my, my investors, and good, bad or indifferent, you know what I mean? Like you, okay, sometimes a picture doesn't, you know, do well, but at least you'd have numbers to be able to, you know, justify that and show why we don't even get that information. And so, when we learned about the potential of blockchain, on media and content, it's really what inspired myself and my co founders to, to do what we're doing right now. And realizing that it is a long game and realizing that we would be disrupting and interrupting, you know, quite quite a system. But just like the internet happened, it was undeniable, and people are not going to use that I'm not going to do that. It's one of those things where you're all we're all gonna be using it, whether we realize it or not. Someday soon. And so, it by introducing the power of this and the efficiency, I think that organically, I'm hoping this is my pie in the sky, you know, but, but I'm hoping that organically, everyone just adopts this. And then we don't even have to have a conversation about the truth anymore. It's just it just happens. Because it's just more efficient.

Alex Ferrari 32:45
Right? And that's what this whole. That's the whole beauty and genius of blockchain is that two strangers can do business without knowing or trusting each other. And that's been the issue from the beginning of the humanity high, since beginning of time, it was like, I want to give you my goat. And you're gonna give me a cow. But how am I sure you're not going to kill like, there's, there's no, there's no way of doing and that's why fiat money and gold and all these kind of things of getting, we've tried to figure it out over the years. But in this digital platform with blockchain, it completely erases everything.

Kim Jackson 33:24
And it's completely transparent. You don't have to have a like a moral or philosophical or ethical position, it's just gonna be in is it just gonna happen? Because it makes more sense. It's logical, you know, and this is, like, Jake said, it's math, it's man get down to the core of all of it. And it's math. And it's just with with the acceleration of technology and media in particular. It's going to make sense, just from a logical perspective, because how do you account for all this content? And this content sharing? I mean, it's like, it's insane how much is out there. I mean, just from the perspective of the viewer, I get we're over, we're overwhelmed with choices. And if you think about it, from a content creators perspective, the competition out there is insane. And the lifespan of your of your content now, is much, much longer and much greater, much grander than it ever was before. And it's going to just keep accelerating.

Alex Ferrari 34:17
Right, exactly. And I, you know, I'm in the weeds with this all the time. And when you're saying all these films are out there, most of them aren't getting paid. And it's not, it's either, you know, I did just not they're just not most most most of them are not getting paid, because of these kind of weird distribution agreements or shady practices or error, human error, as well, or Amazon's which is from 10 cents a minute, an hour to one penny, of streaming and things like that

Kim Jackson 34:49
get acquired and somebody else buys them and then they have a new department and then they have to transfer all that centralized data and I've got a new person and I'm looking at this first time and I don't know what I'm looking at. I Since it's insanity, it's really insanity. And when we talk to a lot of the, you know, CFOs and accounting types who put these media companies, you know, a lot of times the one departments are talking to the other. So the the department is doing distribution for television is not talking to the department is doing distribution for for traditional film and they have data that's separate and those that data should be connected, and it's not being connected, and it's in the same company within the same company. So the inefficiencies are getting the gap is getting wider and wider. And so they know that something's got to give because they're losing money. And so, you know, the blockchain is an incredible solution. And, you know, we're very, very excited and very motivated by the promise of blockchain. And, and, you know, it's very exciting that you guys and the listeners, and everyone, you know, get this and, you know, it's like talking, it's kind of boring on some level to talk about it a blockchain, because it's like talking about JavaScript, it's like, Who cares? It's like, what's going on underneath of the hood. But you know, what you really care about is, you know, what's, what's the bottom line for, for you, and what the bottom line is, is understanding the core that you're using is actually going to level the playing field, you know, take away, you know, the mistrust, and be able to give you instantaneous recording, these are very important and powerful things, especially for independent companies that want to sustain a business and revenue model for themselves. Because it's, it's almost impossible, you know, you'll get a bunch of funding, you'll make, you know, half a dozen movies, and then you're closing your doors four or five years later. This happens all the time. And so there's got to be a better model. And we're hoping with with this technology, we hope to be able to provide that to these, these filmmakers and these companies.

Alex Ferrari 36:52
Now, there's another thing I saw on your website in regards to financing a film, how do you use this technology in the financing game on how to get your independent project financed? Because there's some very, very interesting benefits that could possibly come from it?

Kim Jackson 37:10
Sure, it's a bit complex, right at the moment, it's not black and white, as you know. You know, I think if you're in a perfect world, and in the future, I can see that you can tokenize your movie, do a token raise just almost like crowdsourcing in a way. But the differences is that instead of getting a T shirt, you're actually getting revenue participation in that movie. And in real time, just like we're talking about through the same mechanisms we were just discussing. And that's in a perfect world. And that's what we we envision for tokat. In the future, it's not possible for various reasons, right? Right now, really, from that perspective of, you know, we can't be it, we can't hold money and be a bank for people like that there has to sort of be that separation. And so it's not as easy. And also, on some level it's crowdsourcing. So you're kind of faced with that same kind of situation with, you know, the Kickstarters of the world, right, in terms of like, getting people's attention, to be able to, you know, raise the amount of funds that you need for that your, your picture. And so, there is a mechanism that I could see in the future that would kind of combine those two efforts where people, especially if you're a well known filmmaker, and you have a track record, and people know, you, you're already going to have a fan base. And so imagine, imagine if there was the Star Wars token, like a mad magic. And but but all those token holders who were fans got to participate in the success almost like the NFT type of model. Right, right. But but from from more of an intellectual property and a revenue sharing model. So, Jake, yeah, I'm sure you got.

Alex Ferrari 38:52
It's like, it's like equity crowdfunding, essentially, almost. But using blockchain and tokens, it's called,

Kim Jackson 38:59
it's complicated because of ky seeing. And because of all of these, these these sec rules and regulations that are from like, 1948, or something that don't really apply to technology today. And so it makes things a bit challenging, but how about this for this specific moment,

Alex Ferrari 39:17
but what about IPOs? So wouldn't this be similar to an IPO? Well,

Jake Carven 39:23
it would be but we forget, I mean, we don't forget it. It's a very small pool of people who actually get to participate in IPOs. Right? It's not IPOs are not something that every person gets to participate in. We might be able to buy a stock after a bank purchases X number and then they sell it again.

Alex Ferrari 39:44
initial point an Ico excuse me, an Ico not an IPO but Ico when they like Dogecoin for God's sakes, or something like that when they put out a coin codepoint initial coin offering could that be kind of like a movie initial movie offer

Jake Carven 39:58
so well. That's the thing, I mean, that we're at, we're at the stage to go back to the knowledge of where we are in the evolution of the technology. Right? There's, we're at the stage where Yeah, it's, you know, 1996 internet, but the SEC has caught up enough learned enough about the internet, right, that they're on, on c span, calling it a series of tubes. But, you know, applying their existing framework to this, and causing a bit more, you know, you know, it's still an evolving process. So, you know, we've gotten to a threshold where, you know, 2017 2018, is where you had the sort of Ico boom. And that's where the technology was very new to a lot of the regulators in, in, you know, countries around the world. But now 2021, it's much more familiar, it's on the radar. So they've limited stuff to a point that you really not seeing those happening as much right now. The coins that are released very often it's, it's not something where people are raising funds through a release of the coins, where people are purchasing them, it's usually more, the new currencies or tokens are being utilized, where they have some utility to them. And they're being distributed to a community of people who can then you know, use them for different purposes, but it's not being used as something to you know, crowdfund in the same way that it was in 2017 2018. So you know, where we look at in terms of if you're a filmmaker, and you're going to raise money. And one of the big aspects is, where's the money coming from, and you can still go out and raise equity and get investors. But what happens more often than not is you're a filmmaker, you get an investor to help you with your first film, you make that film, but from the investor standpoint, the experience of being an investor in independent film is is so bad, because there isn't a lot of information, right? There's, you know, they don't, it's not even that they didn't make their money back. It's just like, there's the black hole, right? There's no data, there's no, it's very hard to get a sense of like, what's going on, you know, what is the act? How is money actually being used? Where's How is the film doing? What was the value of my investment in this. And so it becomes incredibly difficult to get people to investor invest in a second film. And you what we really see is this technology being a tool that creators can use when they go out to investors saying, look, using this, and the technology ensures that you're going to have this access to information. And, you know, we're addressing these sort of pain points that a lot of film investors encounter. And that makes the you as a creator. more intriguing, you know, option for someone to invest in, because there's this level of like, I don't have to trust that you're going to write me a check and pay me back. It's, it's we're utilizing technology that's going to automate all of that. So you're going to get everything as soon as we do. And that our aim is for that to be something that helps these conversations when filmmakers are talking to investors. And that's how it right now without getting into regulations, and sec stuff is a way today that it can be used as a tool to help with financing.

Alex Ferrari 43:20
Well, where can people find out more about what you guys are doing?

Jake Carven 43:26
Well, you can find out on I mean, on our website. So breaker.io is a website. For our technology side, we have a website called tools.breaker.io. We also have our studio side where we produce and finance our own slate of films. And that's breaker studios. And actually, I'll add that those films are our own testcases. So we're using this technology to manage the revenue in the rights for the films that we're producing ourselves. So we're not just asking people to use it, you know, and we're also not just technology people that are trying to build something for the film industry, because we think the film industry is cool and sexy. People that happened to be technology people at the same time, I'm an entertainment attorney. And I spent my career as a distributor working with new distribution mechanisms and new tools and platforms, and Kim's a producer in producing films her whole career. So we're also you We come from the entertainment side and have that background and knowledge that has informed how we guide this technology.

Alex Ferrari 44:34
And the old joke is how do you how do you make millions in the film industry? You start with billions. Yeah. You did. Actually. You don't? I mean, it's Yeah, I mean, and you say that you know you when you define the film industry, Alex Well, the film industry is very there's so many aspects There's the independent film industry. There's the people who, like Marvel. There's Disney, there's, you know, then there's the back back alley, you know, predatory distributors. There's so many aspects of the film industry on the just performance side, then there's the production side, then there's the this, there's, there's so many different aspects of it. But yeah, so you can't make money in the film industry. There are definitely places you can make money in the film industry. But

Kim Jackson 45:30
yeah, if you're a pirate, and you know, I've met them on all beside you're talking about I've met them in production, of course, we'll go We'll go What's your budget, okay. And then they do their own creative accounting on the production budget, so they can filter, you know, filter money over to some other entity, whatever happened. And you're like, you know what, I'm a line producer. I know how to count. I don't think you kidding me? And they look at you with a straight face. Like what do you mean,

Alex Ferrari 45:59
crafts? craft services cost? $20,000. a day on $100,000? movie? I don't understand. You know, $100 bagel?

Kim Jackson 46:12
Yeah, you have? Yeah, there's, there's four extras and you have, you know, $100,000. And for extras, like, you know, like, what? No, extra. So, you know, like these types of things. But yes, you have to be a pirate you do, you have to be a pirate. And, you know, I've definitely made a movies with my fair share of them. And I had to say it was a lot of fun. However, I want to make money, I want to make money, I want enough a business revenue source, you know, that's reliable, that allows me to sustain a business model for myself. And you know, one of the other interesting things that I always bring up to is a lot of colleagues who've been in the business a long time who have survived longtime survivors of you know, independent films specifically, you know, they are coming up against Where are the rights to these films that we sold 15 years ago, where are these are who owns the rights to these films, because they're expiring now and right, and technically, they should be able to, you know, repackage and redistribute these films, especially the sweetheart films that have, you know, an ability to be repackaged in a really, you know, classics or whatever, how or whatever you want to package it. And they're finding that they have no idea where the rights live anymore, because a lot of times the companies that they first sold to were bought, the libraries were bought and sold maybe multiple times, and the the resources that would take them to do the research is just not they're not it's not available to them. So they just kind of have to let things you know, go. And it's a it's a missed opportunity. It's a missed business opportunity, especially if you're a longtime, you know, producer, it's our director, you know, a creator it's, it's, it's a lost opportunity.

Alex Ferrari 47:56
And if you have smart contracts, that kind of voids that situation. if everyone's on a smart contract, like 15 years, it automatically goes to this person's account again, and blah, blah, blah, or whatever it is. All right. I mean, if everything in a magical world, eventually we'll get there. I think we're still years away. from everybody jumping on board, it could because it's, it's like the internet. And how long did it take? I still remember going on line and going Paramount calm? Nope. disney.com? Nope. Like there was I remember those times that there's How long did it take before everybody jumped online before anyone had a website? So this is the same thing I think it's gonna take it's gonna be faster than it did with the internet, though. And Bitcoin is kind of like, done a lot of the heavy lifting over the last decades. It's It's, it's, it's it's come out. It's like, they've kind of refined the idea. And now it's starting, I think he's starting to pick up a little bit of steam. Would you guys agree with all just blockchain and everything is that people are starting to become much more aware of it. Sure.

Jake Carven 48:56
Well, technologies evolved to a point that it's, you know, there are, there are certain hurdles that we encountered and chosen a team that limited our ability to do certain things that were are no longer hurdles, because technology is evolved. So it's growing and improving really, really fast. And that's a great thing. Because, you know, we see the potential use cases and the potential is becoming the actual very quickly.

Alex Ferrari 49:22
Yeah, I mean, if you remember 1996, and then you remember 2006. I mean, YouTube was a year Oh, you're you're too old. And the compression of video was horrible. And it took them another five or eight years before. Oh, look, 720 p. It takes time for this to go. But I think that's I think it's a very exciting time. And I think what you guys are doing is really exciting. And there's there's a lot there's a big learning curve coming. There's a lot of hurdles we have to get over. for everybody involved including the old school dinosaurs and the new young kids coming up who understand is much better than your flitz.

Kim Jackson 50:04
But, you know, don't Don't sell yourself short. I mean, you know, we were there in the beginning. So we have more knowledge, you know, because we were at the sort of the, the beginning of the internet craze. And sure, I think that being around for that and witnessing that and sort of being turned on by it, you know, kids today they just automatically come into it. They don't know they don't understand. They don't this they did not get, you know, like I had a bag phone. I had a phone in my car that was in a bag. Like That was my I was talking about this past weekend with somebody like cell phones was like this giant if anybody

Alex Ferrari 50:39
wants it in a bag, if anybody wants a reference to that watch lethal weapon. And at the end towards the end of lethal weapon, Danny Glover is outside on a bridge talking to rigs on one of those phones.

Kim Jackson 50:51
One of those phones and it was like the $900 a minute like it was really it was seriously like you get you only it was an emergency situation, you know. But you know, the internet was it's very interesting, you know that the whole thing? I mean, I I was in college and I was dating a guy who was a computer science major at BC any I always joke he bought me my own URL for like Valentine's Day and I was like, What is? Where were the flowers? What is the nerdiest the nerdiest,

Alex Ferrari 51:22
dirtiest romantic gesture in the history of?

Kim Jackson 51:25
I have my name calm? Because of him? Yeah. Yeah. And like, there's a million Kim Jackson's on the planet. I mean, I've ran into him. I've had people email me saying, Can I buy my Oh, you're out? Because I I'm like, No, I kidding. Like, that's amazing. But I have my own URL. But I mean, you know, back in the day, if I would not have thought of that, I would not have even thought it. I was like, what's the URL? What do you mean,

Alex Ferrari 51:50
I was lucky enough. I bought Alex Ferrari calm and like late 90s. So I was I was I was, I had a website, business I had, I had an online business in the 90s. I used to make, I've sold this a couple of I used to make like, five, six grand a month. The problem was my server bills were five or six grand a month. Because of bandwidth, bandwidth.

Kim Jackson 52:14
Yes. So that's where we're at now. Yes, this is where we're at right now. And, you know, it's super cool to be talking to you. You're so knowledgeable about it, Alex, and it's really awesome. Because you know, more than you let on that you did. So.

Alex Ferrari 52:32
Like I said, I've been doing a lot of research about this, because I'm really fascinated by the whole concept. I do think it's, it's the future of it's gonna it's gonna affect so many different industries, ours, our small little corner of the world, which is we think it's really big, but the film industry is so small comparatively to medical records and, and just yet, and just just infrastructure on like tracking food and, and manufacturing and finding parts and everything will be on the blockchain eventually, eventually GE medical records everything, everything.

Kim Jackson 53:03
I mean, imagine like, that's one of the examples, I use a lot of medical records, because we will say I don't I don't quite understand. And I say well think about like, you go to the doctor, and then your insurance changes you and you got to go to another network. And that network didn't talk to that network, and you got to fax your faxing, where it's to 2021 were faxing medical records right over to another thing and they didn't get it, you get there and like, we never got the fax and you're like getting it to fax. And I mean, you know, it's like insane the inefficiency and data sharing in the health industry. I mean, it should just be a decentralized network, you can just go Okay, which is a little scary, because then, you know, give the Think about that for one second. I mean, there's some security, and some, you know, privacy things that would have to be it for me to be comfortable to. And by the way, there are blockchain companies who are working on the security and the privacy issues around, you know, the fact that it is decentralized, and you know, anyone could find the hash tag that would be this long that you would have to understand that there's, you know, Jake's hash tag for that particular thing. Unless he told me I wouldn't know that but people don't quite understand that but but and when people's names and more private information is gonna start being shared. I think, you know, it's good to know that there are blockchain companies that are working on the on the privacy and security protocols around that because it will be necessary.

Alex Ferrari 54:34
Now, just really quickly, those What do you think of the NF t situation because I mean, I've done I've done three episodes, I did a series of episodes on NF T's because I was fascinated with them. And once I understood what an NF T was, which is basically a digital baseball card. Like Okay, got it. It's a baseball card. It's a comic book. It's what it is. So I put up some NF T's just for fun and sold out. I was like, wait a minute. How does this work and In my NF T's that I sold, where I have the distinct honor of having the very first filmmaking tutorials ever uploaded to YouTube. Cool, I have a series of six of them. And they were all up there. And I showed the link and everything and they I sold the first three and then I uploaded the other three. And I've had, I had interviews with the the guys that a lot of wanna, who NFT their, their, their feature, and they're not selling their distribution rights, but there's, you're able to buy basically shares in their movie. And then whatever money comes in, gets out there. And then Kevin Smith is selling his entire distribution for his latest film on that, whatever he's doing there. What do you guys think of NF T's and how it affects the film industry? Just out of curiosity? I know, that's not what your company does. But this is just a curious question, Jake.

Jake Carven 55:48
Well, you know, and it's funny, I wouldn't say that we don't do anything with NF T's because NF T's are tokens. And we operate in tokens, right. And so while we see greater application of fungible tokens to a film, where you're creating the, you know, Jake's movie token, and you're creating 100 of those, and each one represents 1%, of the total share of Jake's movie token, it's still a token. And I think that the core concepts that you need to understand to buy and interact with NF T's are the core concepts you need to understand to use any blockchain application. And so to that regard, it's uh, you know, rising tide raises all ships, because the more people that learn about this and become comfortable with the fundamentals of the technology, the better I think, at the end of the day, you know, there are things that come up with NF T's where people like NF T's can do this, they can do that. tokens can do that. It doesn't have to be an NF t to do it, it's tokens. And so we focus and NF T's are flashy, because of the, you know, the dollar amount that comes up with some of the sales. And, you know, I think there's a very particular audience that's very excited about that. And, you know, it's a specific pool of people that are actually transacting and purchasing NF T's it's not, you know, it's a very, it's actually a very small number of people in the whole, you know, of the total population that are actually purchasing. But they're collectibles, right, it comes down to collectible item, merchandise, things like that. And that's great. It's really interesting how it's evolving in the gaming space, you know, and how these tokens can be used to unlock different things. And that's exciting to see that evolve. And I think that's going to be in the next couple of years, where it's going to continue to get exciting is in, in gaming, right? Because video games, the whole world of you know, I bought this game for 150 bucks, I'm playing it and now I have to purchase, you know, in app purchases, I need to play it yet. But then you don't own those things. Right. It's stuck. It's limited to just that game. These are not transferable. That's, that's a, you know, problem in itself. But we just keep going back to you know, the more people become comfortable with tokens, the better for our standpoint, because that is what grows the technology. We, at this point, you know, you mentioned, you know, that that's a lot of the boring stuff, you know, or the boring aspects of blockchain or applications, like with healthcare, we focus on the boring stuff in the film industry. And I'm fine with that. Because, you know, we're nerds and, you know, I said, I'm the attorney and I like the boring stuff. I find it fascinating. And, you know, so what we do is necessarily sexy, you know, you know, videos and flashy stuff that selling for, you know, millions of dollars, but we think it's a tool that can can really help this industry and help independent creators across the board. Whether or not you're tech savvy.

Alex Ferrari 58:55
Yeah. And look what the NBA has been doing with NBA hot shots and, and Major League Baseball's coming out with their like digital packs. And those digital packs are like flying off the shelves and things like that. When do you think when do you think we're gonna see, you know, Marvel's NF T's? Like, you know, when are we going to start because it's coming? It's coming in? There's no question tomorrow it

Jake Carven 59:19
yeah, it might be tomorrow. I think fox is announced they're making a big investment. And, you know, it's, it's, it's an inevitability. But when you look at in that regard, it's it's just an extension of their merchandise division, and it's just more merchandise and with no cost.

Alex Ferrari 59:35
It's very little cost of manufacture.

Jake Carven 59:37
Yeah, exactly. So you know, I think it I think it's a good thing in the long run,

Kim Jackson 59:44
because, you know, what, it's, everything's digital now. Right? So, you're, we're going, we're going been going into the digital world for decades now. And so, one, I think challenge especially for art, you know, is how do you rare Buy and make digital art meaningful and worth something. And so I think that NF T's are, you know, valuable in that way, because then you can, you know, create value in a new in a new way, especially for digital art. And I think that, you know, studios, they've got all the that, you know, they're the, they're the, you know, 1000 pound gorilla sitting in the room, and they just sort of wait till everybody else figures it out, and then they just go, Okay, we'll do that. And here's the money make it happen. Let's do it.

Alex Ferrari 1:00:28
It also took it also took them 12 years to a major studio to come up with a streaming service. So there's that they aren't, they're not fast, they're not fast. They're not path

Kim Jackson 1:00:36
because it's bureaucratic. And there's operasi, inside of the studio, if you've ever worked at one I had the pleasure of doing when I first came out of the gate, you know, with my career and realize that that didn't think I could remain employable in that atmosphere. So I, you know, just thought the indie road would be would be better, but I feel that what we're the road we're on with building applications on blockchain technology is going to aid in the evolution of our industry. And that's really what we're what we're dedicated to. And and in you know, that that that slow and steady wins the race?

Alex Ferrari 1:01:23
Right? On, there's no question and to bring it back to where we started with the 1996 analogy. Remember, when when the internet first popped out? How many people were scared to put in their credit card? Oh, yeah. And that's the same thing with like, how many people are afraid of buying an NF T or, or buying a token or putting their you know, that's where we're at right now? And yeah, I think it will, it will change probably faster than any of us think it's starting to already grow in self. I mean, even in the small time that I've been aware of this avenue about Bitcoin, obviously, like everybody else has probably, but understanding this, I've only been really got into this deeply, probably the last six months to a year. And just in that time, things have changed so dramatically, and will continue to change as things go forward. So it's exciting. I'm excited about what you guys are doing. Thank you for fighting the good fight and try and help creators and filmmakers out there so I appreciate you guys again, where if everybody wants to check you guys out where they go.

Kim Jackson 1:02:23
breaker.io and watch trust machine the story of blockchain

Alex Ferrari 1:02:28
Yes. With with is it. tetanus tetanus bill, bill from Bill s Preston Esquire. Let's do it correctly.

Kim Jackson 1:02:37
Indeed. He's the director extraordinare.

Alex Ferrari 1:02:39
Yes. Thank you so much.

LINKS

  • Breaker.io – Website
  • Kim Jackson – Linkedin
  • Jake Craven – Linkedin
  • Trust Machine: The Story Of Blockchain – Amazon
  • Vinay Gupta – A Brief History of Blockchain – Youtube 

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