The groundbreaking film 'Chime' by Kurosawa is setting new trends for Web3 in the movie streaming landscape.

Today, we had the opportunity to engage with Albhy Galuten, a Senior Fellow at Intertrust. His forward-thinking perspectives on the intersection of technology and entertainment are truly enlightening. With the highly anticipated Web3 movie premiere of 'Chime' by the renowned Japanese filmmaker Kurosawa, Albhy's insights allowed us to delve into how Web3 innovations like blockchain and NFTs are set to revolutionize global movie distribution and enhance fan participation.

What exactly constitutes a Web3 film? Let's delve into this concept.

We're essentially looking at films as NFT collectibles. Think about the days of purchasing a DVD with its extra features – perhaps only a small fraction of viewers ever checked out the bonus content. However, those few were often highly value-added. Now, you have the option to market those extras as NFTs, which you can download and watch if you're willing to pay for them.

And if those extras are considered rare, you could potentially sell them for a premium. NFTs coupled with blockchain technologies allow for the creation of scarcity or abundance at your discretion. You might place content on platforms like Spotify or Netflix where it’s accessible to everyone.

You have a choice between aiming for mass appeal to a broad audience or catering to a dedicated base of enthusiastic fans willing to invest more. For certain genres and artists, this focused approach can be far more meaningful.

Do you think everyday consumers would invest in these NFT film components?

Humans have always had a penchant for collection—think baseball cards or iconic player jerseys. Well, now we’re extending that tradition to the digital realm. The lines are blurring between ownership and streaming, physical items and digital collectibles.

In this case, you have a dedicated fanbase with specific interests. While it might not be a blockbuster on Netflix, it holds immense value for those who are passionate about it. Moreover, it doesn't have to encompass the entire film. It could simply be a director's cut, behind-the-scenes footage, photos, or whatever else catches the eye.

Moreover, backgrounds in modern filmmaking often utilize point cloud technology, allowing for the creation and adjustment of digital environments. There's nothing preventing you from monetizing the very scenes filmed, even integrating your unique visuals into those spaces. Essentially, any digital asset can now exist independently or be modified individually. Our technology truly enables the design of any business model surrounding these assets.

How might blockchain technology support songwriters?

One innovative application we provide is the ability for songwriters to capture a melody simply by singing into their phone. With a press of a button, it's securely stored on the blockchain—complete with encryption, signing, and hashing, ensuring copyright protection.
Once that initial melody is recorded, it can be updated at any frequency—whether five minutes, hours, days, or even years. It remains a permanent fixture on the blockchain, validating your copyright.

In the event of a dispute years down the line regarding rights or contributions, you'll have the complete records to trace back the creative journey. This approach fundamentally alters the landscape of the creative industry compared to traditional practices.

What challenges do you expect in the broader adoption of Web3 technologies in entertainment, and what strategies might you have to overcome these issues?

A trend I foresee is that people will gradually move past the initial hurdles presented by crypto. The limitation that many NFTs are purchasable solely with cryptocurrency or through digital wallets can deter users.

Most consumers struggle with setting up wallets and navigating the complexities involved. A more accessible alternative would be a managed wallet akin to what Amazon does with your credit card details. It boils down to whether individuals trust the entity managing their sensitive information.

How does Intertrust employ blockchain in its services?

We leverage an advanced rights expression framework. Our firm understands how to meticulously govern rights, with most players in the field of digital rights management holding a license with us.

Key players like Netflix, Apple, Google, and Amazon all license our foundational technology. Our process involves creating a contract that encapsulates the parties involved, encrypting it, signing it, and storing it in the cloud. The signature, the contract hash, and the identities of all signatories are then recorded on the blockchain.

This ensures the integrity of the contract while keeping only the essential data on the blockchain, allowing for a diverse range of possible agreements. Additionally, it provides the flexibility to adopt any business model one envisions.

We pride ourselves on being the sole company capable of showcasing generative art on commercial devices. When you invest in generative art today, viewing it on your television generally requires processing on your laptop first, which is then streamed. With our technology, you can buy it and stream directly.

Do you place importance on digital rights management while offering your services?

When we started our journey in the 90s, digital rights management was widespread, which made compatibility challenging. Nowadays, a universal encryption format exists. As a result, if we encrypt an item using DRM, it can seamlessly play across a myriad of devices, including Macs, Apple gadgets, smartphones, tablets, and TVs. As long as you hold the rights, simply click and watch—it’s still under encryption.

The majority of NFTs lack encryption altogether, leading to a chaotic environment. You can purchase them and utilize them as you please, which is acceptable, yet if you desire your intellectual property to be properly governed and to follow defined guidelines, digital rights management is essential. We are pioneering in the marriage of DRM with blockchain.

Do you foresee further advancements and innovations within the Web3 entertainment domain?

Interoperability among 3D objects seems inevitable, and these items will require adequate copy protection. I believe we will witness a fusion of tangible assets with virtual platforms. For example, we demonstrated at IBC how we embedded NFC chips in the winning football match ball, allowing for verified resale and perhaps even usage rights in the metaverse—imagine flaunting a virtual version of the actual ball that clinched the World Cup last year.

This isn’t going to revolutionize the industry or push Netflix out of the picture, but it offers a way to enrich experiences, particularly for fans and super collectors who take pride in their acquisitions and the rights that accompany them.

In light of the growing acceptance of Web3 and recent demonstrations in Hollywood, do you anticipate more protests and regulatory changes in this sector?

Certainly concerning AI. As for Web3 and the metaverse, the challenge with regulations lies in their inherently borderless nature. For instance, laws against creating deepfakes may vary globally.

Establishing regulations will likely require an international organization, such as the World Trade Organization or the International Monetary Fund, to devise global protocols. Adhering to these will be crucial to avoid potential economic consequences.