The DAO of Saving Blockbuster Through Blockchain
Blockbuster was once one of the biggest companies imaginable, providing us with endless opportunities for entertainment. Then the internet came and changed the rules of the game. The company was never the same after that.
While Blockbuster’s heyday is now a distant memory, its name and legacy live on. Today a Decentralized Autonomous Organization (DAO) known as BlockbusterDAO is seeking to raise funds to purchase and restore Blockbuster. Word on the street is that there are plans to turn it into a streaming service, undergirded of course by Blockchain.
What is a Decentralized Autonomous Organization (DAO)?
A DAO is a community of people with a specific aim and a common interest. Utilizing the blockchain and smart contracts, they set their mission, one where each member of the organization possesses a vote. Given its presence on the blockchain, the rules are completely transparent along with who’s participating and the amount of money raised.
At almost midnight on Christmas Day, news of Blockbuster’s DAO plans emerged on Twitter. The aim? — to raise $5M to buy the franchise from Dish Network. (Dish bought an almost bankrupt Blockbuster in 2011 for 321M).
Blockbuster’s DAO plan begins with purchasing what's left of the company, specifically the name and the logo. This they hope will be the start of Blockbuster’s emergence out of the shadows.
If successful, BlockbusterDAO would become the first decentralized platform for movies. As a part of this reconstituted version, they would create what amounts to a Movie Pass for distributing content throughout the internet.
So how will they raise 5M dollars to buy the company? Easy: BlockbusterDAO NFTs. These NFTs would give purchasers a participation percentage in the DAO. Each NFT would be worth 0.13 ETH — around $500.
After acquiring the company, they will begin developing Blockbuster's NFT presence. These new funds would then be used to develop the commercial content platform.
The next stage for the DAO would be to create a film festival circuit and start acquiring films. However, to do this they will have to make a large investment in purchasing a single IP to serve as a backend.
After buying the films, they will likely look to partner with distribution companies to get them into theaters. This will also allow them to post the movies on their own site or rent them to other streaming platforms.
Decentralized Streaming Platform: Too Big of a Dream?
The next step, and one of the most important, is to create the first DeFilm streaming platform. Utilizing a "movie pass", made like ERC-20, will allow users to pay only once for access.
In addition, these Movie Passes will have a resale value, allowing users the option of reselling their tickets on the market.
Moving forward, the plans get bigger and bigger. They expect to start working on Blockbuster Originals. Then the hope is to begin dabbling in blockchain gaming projects.
BlockbusterDAO claims they have reports of companies lowballing the company at 1.8M dollars. But even then, $5 million is a relatively low amount for these sorts of investments.
At the end of the day, the end game is too big to know — So grab your popcorn because the movie is about to begin.