The internet upended film distribution. Video rental stores vanished. Now movies stream into homes through digital pipes. Yet studios still control theatrical release. The MPAA gates the system, decid
The internet upended film distribution. Video rental stores vanished. Now movies stream into homes through digital pipes. Yet studios still control theatrical release. The MPAA gates the system, deciding which films reach cinema screens.
Crowdfunding broke through these walls. Veronica Mars, Kung Fury, and Super Troopers 2 proved audiences could finance movies they wanted to see. But the model carries a problem that insiders have raised for years. More funding means more perks. Filmmakers manufacture T-shirts, design plushies, ship merchandise. The work burns cash and time. Retail operations distract from actual filmmaking. Budgets balloon beyond projections.
Marcus Lovingood, who spent years in theater before moving into new media production, directing, and distribution, built a new platform. His father Mark Lovingood serves as CFO. Brad Wyman, who had worked at both IndieGoGo and Fanbacked, joined the team. Together they created eTIX, a Colored Coin powered by Coinprism. The public crowdsale launches Friday on filmfund.io.
eTIX goes beyond crowdfunding. The platform handles distribution and runs a ticket exchange.
Backers don't get merchandise. They get digital tickets. These tickets are cryptographically secure. Supporters can transfer them to others. Viewers watch through VOD or attend theatrical screenings if the project lands a cinema release. Filmmakers avoid the merchandise headache. The platform reserves a chunk of each crowdsale for a trailer fund. This money helps filmmakers produce campaign materials and cover development work.
The platform will sell 10,000 regular eTIX and 1,000 VIP eTIX. After launch, it accepts all payment methods, not just Bitcoin. Non-crypto users can invest while the platform introduces them to the technology.
The ticket exchange adds flexibility. An investor who spots promise in a film but doesn't want to watch it can resell tickets after the crowdsale. If a project generates buzz, early tickets could appreciate. Supporters who missed earlier campaigns can find tickets on the secondary market.
Marcus Lovingood explained how eTIX competes with platforms like Kickstarter:
"Kickstarter really paved the way for success in crowdfunding and gave us the data needed to perfect the model for filmmakers in particular, departing from a blanket model across all verticals. We just focus on the key element in the film funding and distribution areas: ticket sales. By eliminating the stress placed on filmmakers to design t-shirts and creative merchandise like the major platforms, we've created a model that is easier and much more pleasing to filmmakers and the movie industry as a whole. Cryptocurrency also adds a layer of security and publicly verifiable data that isn't evident in the industry today. We're introducing a new technology that's never been used or implemented in the movie industry, opening up a whole new world of opportunities we're eagerly pioneering. I like to think we're doing what Walt Disney did back in the golden age of Hollywood, but our mouse is a touchpad."
Entertainment drives crowdfunding success across all categories. Lovingood made the case for focus:
"Campaigns centered around entertainment have been some of the most highly publicized and financially successful campaigns of all the verticals across the industry, with over $25M in raised funds to date. By hyper-focusing on film and entertainment, we can provide extended functions like our built-in distribution model that guarantees VOD distribution on Lovingood Filmclub, an element that is not readily available or built into some of the general models and other platforms. We're providing a one-stop-shop for filmmakers across the entire industry, providing a self-sustainable movie engine that is so desperately needed."
The trailer fund resets each year. The platform contributes 600 Bitcoin to start, then adds 1,000 Bitcoin annually. Twelve filmmakers receive 50 Bitcoin each for trailer and development work. This exposes the film world to Bitcoin while backing serious projects.
Lovingood detailed the program:
"Even filmmakers with great scripts and A-list talent attached need development funds, and by providing this grant-like incentive for filmmakers to put together their campaign trailer and package, we're setting movie teams we want to work with up for success. Some of the largest film festivals in the country neglect to offer incentives like these, giving us an edge on the market that will entice the best filmmaking teams to want to participate. Every year we will conduct a Bitcoin crowdsale to fund the Bitcoin Trailer Fund (600 BTC to start, 1,000 BTC/year thereafter). 12 selected filmmakers will be awarded 50BTC to go toward the production of their campaign trailer and any additional development needed to get them campaign-ready to launch on the Lovingood Filmfund. This will also further expose the film and entertainment industry to Bitcoin."
The MPAA controls which films reach theaters. Its rating system predetermines outcomes before release. Studios shelve projects expecting unfavorable ratings. Lovingood argues that online crowdfunding and independent distribution sidestep these barriers:
"In today's motion picture industry, the MPAA controls the success of a film through its rating system. If a film wants to have a wide release, the MPAA must award it a rating, predetermining the success of the film before it even reaches the theater. This affects movies that are chosen for theatrical distribution, creating a thick layer of censorship. If the studio thinks the film will get an unfavorable MPAA rating, it won't release it. By self-funding projects through innovative online distribution models, we can circumvent these crippling barriers. The internet has given us the ability to self-fund and through social media and independent distribution, we are able to challenge the status quo while making similar revenues and profits. There are roughly 40,000 movie screens across the world, yet there are over 2 Billion smartphones with only 20% of the population connected to broadband internet. There's a movie theater in everyone's pocket, it's time for us to take hold of it."
The crowdsale begins Friday at 00:01 PST.
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