Will film NFTs revolutionize movie merchandising?

“The Pirates: The Last Royal Treasure” NFTs issued by Lotte Cinema / Courtesy of Lotte Cinema

By Kwak Yeon-soo

As the non-fungible token (NFT) craze is catching on in the art and entertainment industries, a group of film studios and cinema operators are trying to capitalize on the digital asset to recover from the COVID-19 pandemic-driven slump.

NFTs are units of data stored on blockchains that verify ownership of unique digital assets. The latest move comes amid growing pressure to make up for lost box office revenue and revive the movie business.

Lotte Cinema gifted NFTs to the first 10,000 people who reserved tickets for “The Pirates: The Last Royal Treasure.” The winners were given “secret codes” that could be exchanged for the NFTs on the W. Craft website.

The cinema chain operator has rolled out various kinds of digital merchandise, such as collectible art cards, AR (augmented reality) action tickets and standing posters. In December, Lotte Cinema joined hands with Warner Bros. to release NFT merchandise to the first 30,000 customers who reserved seats for “The Matrix Resurrections.”

“NFTs are trendy assets these days. Combining modern technology with the desire to gain access to a star-led virtual social engagement platform, NFTs will bring a higher level of satisfaction to moviegoers. We will continue to launch diverse NFT merchandise in the future,” a Lotte Cinema official said.

Another major cinema chain, CGV, announced NFT launches that offer merchandise, including film posters and digital art. Moviegoers could get “Kingmaker”-themed NFTs by applying to receive them after purchasing movie tickets. Those who watch the film several more times can get their hands on “premium” NFT merchandise, and among them, the movie chain's top customers can receive “VIP” film posters.

Officials say that including NFTs in its promotional activities not only promotes the movies, but increases profits by attracting more film buffs.

“Kingmaker” NFTs issued by CGV / Courtesy of CGV

“The NFTs provide new and differentiated value to moviegoers who appreciate such new experiences. We will continue to roll out limited-edition NFT collections that have value in and of themselves,” a CGV official said.

Meanwhile, the film studio, NEW, sold out 3,000 Generative Art NFTs, which were created with intellectual property (IP) from “Special Delivery” on NFT platform Opensea. Each NFT was worth 30 KLAY (a cryptocurrency created by Kakao) during the presale period, which started on Dec. 29, and 50 KLAY during the sales period, which started on Jan. 2.

“Apart from ticket sales and pricing for the service via IPTV, there are not that many ways to utilize content IP. With Special Delivery-related NFTs, we've realized that NFTs are fast expanding and are vital to the future of our industry,” a NEW official said.