The State of the Film Industry: Centralization and Inefficiency

The global film and entertainment industry, valued at over $2.3 trillion, remains dominated by a handful of legacy studios and centralized platforms. Despite technological advancements, the system suffers from:

• Prohibitive Costs: Traditional film production requires massive capital ($100M+ for blockbusters, $10K-$500K for indie films), locking out 99% of creators.

• Revenue Extraction: Platforms like YouTube and Netflix retain 30-70% of generated revenue, while creators struggle to monetize fairly.

• IP Ownership Issues: Copyrights are often held by studios, not creators, stifling innovation and long-term value capture.

• Gatekept Distribution: Algorithms and studio deals dictate visibility, leaving independent creators at a systemic disadvantage.

The rise of AI-generated content (e.g., OpenAI’s Sora, Midjourney) has further disrupted the industry, but without a decentralized framework, these tools risk reinforcing existing power imbalances.