Based on blockchain technology, NFTs are digital tokens with unique and non-fungible physical or digital assets. It guarantees ownership of certain content that can be traded in the market and the value of the token changes based on market demand.
Korean Film Industry Introduced NFT to Reach a Larger Audience.
According to a report on January 14, Since December, the South Korean film industry has introduced non-fungible tokens as a marketing tool to reach a larger audience.
After purchasing a cinema ticket, cinema-goers can apply individually for one of six different NFT merchandise on the subject of the matrix.
A spokesman for Lotte Cultureworks, the operator of Lotte Cinema, told The Korea Herald that all 30,000 NFT products were distributed to the public and NFTs are so popular right now, so there’s no reason not to hold such events anymore.
The spokesman added that viewers appeared to have applied for NFT merchandise out of curiosity.
The collectibles he is referring to are high quality printed movie tickets, which South Korean movie giants often give away to a limited number of moviegoers.
Also in December, Cho Sung-kyu’s film “The Long Day” began selling NFT goods on the MyPics and Klip Dops platforms of Ground X, the blockchain subsidiary of national technology giant Kakao.
The merchandise on the platform includes two signed posters and exclusive scenes from the film.
director Cho when the special was released stated that they expect NFTs to open up new opportunities in a film market that is stagnating due to COVID-19.
Film Distributor, NEW Took NFTs to The Next Level
NEW announced that it has started selling 3,000 Generative Art NFTs, which were created with IP from the upcoming film “Special Delivery” on NFT platform Opensea.
Each NFT was worth 30 KLAY (cryptocurrency created by Kakao) during the presale period that started on Dec. 29 and 50 KLAY during the main sale period which started on Jan. 2. They all sold out quickly.
a NEW spokesperson stated that It is different from simple NFT merchandise and others usually sell NFTs of existing posters. He mentioned that they created new artworks that have value in and of themselves. Each of the 3,000 artworks is distinct. They have different backgrounds, hair colours, clothing and so on.
He added that due to this uniqueness some of the artworks are already being resold on NFT platforms at a much higher price.
The film distributor added that it is also a new way to increase the value of its IP.
“Every time the NFTs are traded, we get to earn a certain amount because we are the IP holder,” he explained. “So, we are also planning to apply this technology not just to upcoming films but also films that came out in the past.”
Culture critic Kim Hern-sik expressed some concerns about the future of NFTs in the local film industry.
Kim stated that currently, many are willing to invest in NFTs. So the trend will likely continue for a while. However, like most things that are trendy, they are overheated.
Kim added that for NFTs to be a stable means of generating revenue for the film industry, it is important to have a strong following for the content being sold,
“For NFTs to be adopted by pop culture, they need to have a strong following,” said Kim. “Industries like K-Pop have a strong following, and related NFTs are sold to fans. But some marketplaces sell them to people for investment purposes only.”
Kim believes a movie should be engaging enough to have a following for its related NFT merchandise, which gives it lasting value.