The problems and solutions

Problem 1: limited investor access

The main problem is that major studios prevent small investors from contributing to Hollywood movies. The next blockbuster movie is funded by several corporate or private names chipping in with significant amounts of cash. Few hundred or thousand dollar tickets are excluded from this profitable market. Such investors have the only way to get into the industry: by targeting independent (“Indie”) movies. In general, the movie market provides pretty low-risk and good returns, but for an investor who wants to diversify one’s portfolio it takes too much time and effort to find an appropriate Indie alternative.

Solution: Hollywoodie launchpad enables hassle-free investments into Hollywood or Independent/Indie movies via a compliant NFT licensing and lease. You join the platform, pick a movie to invest into, and wait for your ROI. Production and distribution partners do the rest while Hollywoodie facilitates all other necessary things: members-only fan group, NFT license lease service, etc.

Problem 2: centralized funding

Only a few dozens of powerful Hollywood people decide the fate of every script that comes in. For filmmakers, it means that if major studios decline their script, there is hardly a chance to get their movie made.

Solution: Hollywoodie is a full-scope movie studio and a one-stop shop for movie crowdfunding, production, and distribution. Any party in the movie life cycle can apply for partnership or cooperation: producer, distributor, scriptwriter, director, actor or actress, etc.

Problem 3: ROI paradox

Millions of dollars in revenue and profit sound great, right? But millions don’t actually mean good ROI. In fact, statistics indicate that movies with a budget under 1-2 million deliver much better ROI than the ones with 100-million budgets. A few well-known examples (rough estimations based on averaged 35% distribution costs):

• Titanic. Budget - $210M, revenue - $3.3B, ROI ±1.41.

• Avatar. Budget - $240-$387M, revenue - $2.8B, ROI ±1.04-1.29.

• Saw. Budget - $1.2M, revenue - $103M, ROI ±1.77.

• Rocky. Budget - $1.1M, revenue - $225M, ROI ±1.82.

• Napolean Dynamite. Budget - $0.4M, revenue - $46M, ROI - 1.79.

The logic of an investor presupposes that ROI is more important than millions in revenue or profit. But let’s also remember that major studios don’t allow regular investors in.

Solution: As a proof of concept, Hollywoodie will start with movies under a 2 million fundraised budget for the best possible ROI performance. There are smart ways to keep the budget reasonable and still deliver a quality product to the audience. Our team knows the tricks and won’t hesitate to use them.