Media Derivatives 2

When it comes to Media derivatives, if Hollywood does not get on board, get involved, then they will miss the rescue boat, and go down with the sinking ship.

I think it's funny, when people are like "it's just going to lead to people wanting films to fail, or betting against them." >> This happens already!

The point is, good or bad, it would encourage and fund film production. Media Derivatives will get films funded and made >> Get people working again. So regardless of the success or failure of the films (artistically or financially) all the working class people at the ground level would be employed and once again making money.

People working and making money = more people buying entertainment

By getting people working again you will get people going out to the movies again and spending more money on entertainment. Its basic economics, once you get the snowball rolling it will get bigger and bigger. It will get the economy growing again.

Media Derivatives will encourage the betting on artistic projects that currently Hollywood is ignoring as 'high risk'

High risk = High $ potential >> Wall Street loves that

One thing I find interesting is the how people are caught up on 'Box Office' and media derivatives. The media derivatives contracts could be based not on the box office, but on gross receipts for the first year (or five years) of the revenue of a film. In the Old Hollywood, 'US Domestic Box office' was the best indicator of how much a film will make in its lifetime. This is changing so don't get too caught up in box office.

With that in mind it becomes much harder to sabotage a film. Someone who places 'put options' on a film -- wants it to fail -- would have to work very hard to make it fail all over the world, TV and the internet, if it would otherwise be promising and artistically viable to the global entertainment consuming world.

People also worry about sneaky producers (or studios) who will 'bet against' films they are working on, try to make them fail, so they can make money. This is easily dealt with by making sure all producers/funders have more interest -- more to gain -- from the success of a film. A simple way to fix this >> Only allow certain types of insurance/derivatives/put-options to be placed by those with proven investment in the film. Pay producers in "shares' of the film -- cutting upfront costs -- this way, they will win more by the film succeeding then they would by it's failure; however should it fail, or not meet financial expectations they will not be bankrupted.

Remember how betting works, someone has to win, and the 'jackpot' is only created by people ON BOTH SIDES taking opposite stances. So there will always be people rooting for a film, wanting it to succeed and make money, in order for anyone to make money by wanting it to fail. Just like boxing or sports teams. Why would a basket ball or Football player bet against his own team? It happens, but when it does, people can tell, they will ask why, and then that player, referee or who ever will be outcast. Banned from play.

TRANSPARENCY IS THE KEY >> A transparent market will not allow cheaters to hide

Another exciting thing I am personally looking into is setting up films like a Silicon Valley upstart. Getting Stars and people on board as a package, offering it as an IPO on a market exchange, creating a product and a marketing team, pay top employees and talent with shares of the film/company and then traveling the world promoting and selling the film. We could pay dividends to stock holders, people could sell their stock in the project, Studios could even buy shares in the project as part of a distribution deal... It's all very exciting!

'Hollywood' no longer has a monopoly on the film making process, and if they try and fight the 'New Wave' -- rather then embrace it -- they will surely lose. I think Wall Street is on team 'New Wave' : )

I am already talking to like minded people up in NorCal about ways to get projects I have ideas for funded and made. There are many skilled film makers all over the world, so the sky is the limit. If 'Hollywood' continues on the path it's on -- shunning new talent, 'Big ideas' and creative minds -- it's future is not bright. It will lose some amazing talent that will not wait around for it to come to it's senses.