Film and TV startups within the NFT ecosystem are gaining traction, though they’re careful to avoid the term “NFT.” These startups are developing new business and marketing strategies, enabling users to profit by holding NFTs tied to their favorite films, essentially letting them “own” a piece of the content.
Let’s take a look at one of the newest companies.
LALA, a digital collectibles marketplace for films and TV shows, recently raised $3 million in seed funding from Seven Seven Six, a venture fund co-founded by Alexis Ohanian of Reddit fame. Seven Seven Six previously contributed $776,000 in funding.
After its official launch, LALA plans to seek additional strategic investors. Founder & CEO Hiram Vazquez stated that LALA’s goal is to “elevate culture by bringing a new level of ownership and access to the movie and TV stories we know and love, all unlocked by blockchain technology.” He also hinted that the company would partner with “one of the largest films from the last 10 years” for its first intellectual property.
LALA’s stated goal is to engage fan communities by selling collectibles linked to revenue streams like box office sales. When a movie is released, it generates income from ticket sales and streaming agreements. LALA holders will collect a share of the profits from their favorite movies and shows with each collectible purchased, depending on the chosen revenue stream.
LALA will also display a list of perks that users will receive with their collectible, such as limited-edition art and exclusive event access. The company is building a loyalty program to offer collectors benefits that will unlock over time, including discounts on future collections and official merchandise drops.
Ohanian noted that LALA provides real utility by “granting new access to our favorite stories. In this broader bear market, it’s no longer a gambler’s or get-rich-quick mindset, and that’s a good thing for serious companies building for the long term.” LALA’s focus on engaging fan communities means “it feels good to own a piece of your favorite movie or TV show, regardless of the dollar amount.”
By “creating opportunities for deeper connections and immersive experiences for the fan community,” Ohanian says, “LALA is far more valuable, more effective, and more compelling than anything out there today.”
Interestingly, LALA avoids branding itself as an NFT company, despite operating similarly. Vazquez attributed this to the stigma surrounding the term, which he believes stems from projects selling mere “JPEGs on the blockchain.” Instead, LALA uses “collectibles” to describe its offerings, a strategy Reddit successfully employed in 2022 with their “collectible avatars” of the mascot, Snoo.
Combined with LALA’s emphasis on individuals owning a piece of their favorite film, film “collectibles” align better with traditional fan and film memorabilia concepts. Given the current climate surrounding digital assets, only time will tell whether re-branding NFTs as digital collectibles truly pays off.