The document discusses how blockchain and other technologies are significantly transforming the Hollywood entertainment landscape by enhancing corporate innovation and consumer engagement. It highlights the challenges of adaptation for traditional studios and the potential of blockchain to improve content accessibility, intellectual property participation, and profit tracking. Additionally, it emphasizes the importance of a crowd-focused approach in incubating and accelerating growth ventures within the entertainment industry.

1. Crowd.Focused.Global.Innovation.
Disruption.Acceleration.
How is Blockchain Changing Hollywood
Mariana Danilovic, CEO, mariana@hollywoodportfolio.com

2. 2

3. Fortune 500 Companies --
Innovation and Disruption
• Today Fortune 500 companies have a 40 to 50 year
average lifespan.
• Over 50% of the Companies that were on the Fortune 500
list 10 years ago are no longer there.
• Some well known Fortune 500 Companies and household
names that no longer exist include: Compaq, Woolworth’s,
Enron, E.F. Hutton, MCI WorldCom, PaineWebber, Bear
Stearns, Eastern Airlines, Pan Am, TWA, DeLorean Motor
Co., Adelphia, Arthur Andersen, Standard Oil, and General
Foods Corp.
The message is clear: Innovate and Disrupt or Perish.
3

4. The Key to Successful Corporate
Innovation and Disruption
• Creating an environment for developing or acquiring the
next group of break-through technology driven disruptive
businesses.
• Successfully integrating with existing businesses or
developing stand-alone businesses.
• Building the culture to sustain the creation of those new
ventures – through Innovation Labs, Corporate
Accelerators, VC funds and other corporate investment
vehicles.
• Creating an environment where corporate innovation
groups have the ability to modify their overall corporate
strategy.
4

5. Technology Innovation and
Disruption Cycles are Accelerating
• As AI, AR/VR, blockchain, Internet of Things, wearables,
and other innovative technologies speed up disruption
through the plethora of new and competing business
models, the established format of corporate innovation may
have to pivot multiple times.
• These pivots are challenging to do within larger
corporations.
• These pivots happen naturally in the underlying technology
innovation eco systems like Silicon Valley, Shenzhen, and
Hollywood.
5

6. Why is Hollywood an Innovation
and Disruption Eco System
• As new technologies accelerate, consumer engagement
shifts with new programming formats.
• Corporations targeting consumers will want to participate in
the eco system that is accelerating shifts in consumer
engagement.
• Entertainment will merge with commerce through new
technology eco systems and corporations will need to
participate in this transformation.
• Content will shift from traditional film and TV distribution
mechanisms and so will the effective opportunities to reach
consumers.
6

7. Hollywood Eco Systems are Very
Unique
• Hollywood eco systems are not easily reproducible and will
shift at an accelerated pace in 2018 and in the near future.
• In addition to streaming services bringing innovation to
content formats and consumer consumption of content,
there will be many new entrants due to developments in:
– Blockchain
– AR/VR
– AI
– Internet of Things
– Wearables
– 5G mobile
7

8. New Film, TV and Entertainment
Landscape
• Netflix and Amazon fundamentally changed user
preferences in consumption of programming – for example,
binge watching of TV
• New entrants in the original programming space: Apple,
Facebook, Twitter and Google
• Most “A” rated Hollywood movie stars have lucrative TV
deals
• Original Programming Spend this Year:
– Netflix -- $6 billion
– Amazon -- $4.5 billion, moved to Culver Studios
– Hulu -- $2.5 billion
– Apple -- $1 billion
8

9. Film and TV Original Programming
Business Models
• There were 487 scripted original TV series in production in
2017, up from 192 in 2006.
• In movies, the domestic box office has been flattening for a
while, while the global box office hit a record $39.92 billion
in 2017 (Source: comScore).
• The big six Hollywood Studios are focused on moviegoers
around the globe by producing blockbusters.
• Entry of other global video streaming and telecomm
companies with Disney and 21st Century Fox combination
launching two new streaming services in 2018.
• Changing Perceptions
– Writer-rooms and roundtables
– Diversity works globally – Tracy Oliver, Girl’s Trip over $100
million gross this summer
9

10. Consumer Fatigue and Dis-
Engagement
• Proliferation of streaming services with original
programming has led to consumer fatigue.
• The average US viewer has access to about four, but only
uses about 2 online streaming services regularly (source:
PWC)
• About half of US viewers said there are so many TV shows
to choose from it’s difficult to know where to start (source:
Hub Entertainment Research)
• Fewer people, 73% compared to 81% in 2014 say they are
devoting more of their time to their favorite shows
Engaging these consumers effectively to sell products
and services will be crucial for most corporations.
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11. Traditional Film Business Issues
• October 2017 was the smallest revenue generating month
for the US Box Office at $560 million. This was the first
time October did not exceed $700 million in a decade.
• Blade Runner 2049 disappointed at the box office
– The movie cost about $150 million to make
– Opened with $31.5 million to a gross domestic cumulative box
office of $81 million.
• Subsequently theater-related stocks in the US were down
including AMC, IMAX and Regal.
• This was due to most leading companies in the film industry
betting on the performance of one top film.
• The film industry will continue to suffer from over-emphasis
on blockbusters as the new and more lucrative
programming formats emerge.
11

12. AI in Hollywood
• There have been a few interesting AI applications in
Hollywood to date.
• IBM’s Watson “creating” the trailer using AI for:
– 20th Century Fox sci-fi thriller Morgan.
– Watson learned the trailer making business by being fed about
100 other similar trailers cut into scenes.
– Watson analyzed data based on a few criteria, including
visuals, audio, and emotions that would make this trailer
“work”.
– Finally the entire 90 minutes of the Morgan movie were fed to
Watson, who zeroed in on the six minutes of scenes that were
ultimately used in the trailer.
– An experienced Hollywood editor finished the final cut.
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13. AI Ventures in Film, TV and
Entertainment
• Production – Tangent.AI
• Post-production – Adobe and Beckman Institute for
Advance Science and Technology have created different
backgrounds and digital imagery
• Distribution – IRIS.TV – “personalized video programming
playlists” (80 to 210 million video views from 10/16 to
2/17)
• Discoverability – Valossa – Alexa integrated real-time video
recognition platform for library monetization and
repurposing
13

14. AI Ventures in Film, TV and
Entertainment (cont’d)
• Data Management Services –
– Arvato Systems Media Portal,
– Valossa Movie Finder with metadata from 140,000 movies
– Piksel Palette with acquisition of Lingospot collects scene-by-
scene metadata integrated with cast and crew lists and other
third party documentation to serve across broadcast and OTT
workflows
• Advertising and Marketing Platforms
– Tangent.AI – creating people’s faces with AI for A/B teasting
14

15. Blockchain will Change Hollywood
• There are many areas of the industry that have not been
optimized with Netflix, Amazon, Apple and other new
entrants and their business models.
• Here are five major issues that will be positively affected
with blockchain technologies and their evolving distribution
platforms:
– Issue #1 – Consumers Ability to Access Content – Content
discovery, affordability, and access due to geography, OTT app
or network availability, and the underlying costs still are
preventing consumers from accessing content as easily as they
want it, when they want it, and in their desired format.
15

16. Blockchain will Change Hollywood
(cont’d)
– Issue #2 – Producers Ability to Participate in Intellectual
Property Ownership – New Hollywood entrants pay upfront
fees for original programming. This means that producers are
not even awarded profit participations. The producers don’t
have any intellectual property ownership in their film, TV,
AR/VR project. Blockchain will provide access to content
ownership for the producers and talent.
– Issue #3 – Producers Ability to Engage Consumers in the
Production, Distribution, and Marketing – Due to the
proliferation of programming, producers may want to engage
their consumer “ambassadors” with the development,
production, distribution, marketing and/or curating of
programming. This is much more achievable in a
decentralized, network environment, where everyone’s
contribution is trackable through a non-immutable ledger, i.e.
blockchain.
16

17. – Issue #4 – Accurate Tracking of Ownership and Profit
Participations – The current ownership and profit
participation tracking systems in Hollywood could be
improved. With an open and transparent ledger, most
mistakes in tracking ownership and profit participations
will be avoided.
– Issue 5 – Ability to Distribute Content to the Engaged
Audience – As streaming companies like Netflix and
Amazon gain access to consumer viewing data, the
distribution of content becomes dependent on that data.
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Blockchain will Change Hollywood
(cont’d)

18. Blockchain will Change Hollywood
(cont’d)
As we’ve seen in many industries, several large
technology companies are on a quest to own data.
Blockchain platforms, which are decentralized, peer to
peer and transparent in nature are the way for
Entertainment producers and talent to gain and ultimately
retain access to their consumer data.
• Based on the aforementioned trends, the next generation of
successful Studios will emerge by using blockchain
technologies and by showing more compassion for all
participants in the Entertainment eco system.
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19. Entertainment -- Crowd-Focused to
Accelerate Innovation
In our hyper-connected economy, crowdsourcing is the
practice of engaging a group, aka the “crowd” for a common
purpose or goal.
It can be optimally applied to business innovation, problem
solving and efficiency.
Due to our current social connectivity, it is much easier for
individuals to collectively contribute their ideas, time,
expertise, and more recently their investments, to a project or
a venture.
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20. • Finding the ‘crowd’ that cares about your film, TV project,
and your story is even more important in these new,
technology enabled environments
• Engaging and retaining consumers will be a key
differentiating characteristic in this new world
• Creating ambassadors and prosumers, like Awesomeness
TV and Legion M have already done, will become industry
standard
• Using AI, blockchain or other smart distribution and
marketing platforms to manage this important relationship
with consumers, will become necessary
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Hollywood Venture Initiation
Opportunities through the Crowd

21. Select Crowdfunding Success Stories
• Elio Motors raised over $17 million on a post-transaction valuation
over $300 million with 5,000 individual investors, subsequently
reaching 50,000 automobile reservations prior to the prototype
being completed.
• Virtuix raised $6.6 million from about 4,000 investors on
SeedInvest. The Company captured $1.1 million through
KickStarter and then another $8 million from institutional
investors.
• VidAngel raised $10 million in 5 days from about 7,500 investors.
– Went live 10/19/16 and closed its first tranche of $6.25 million on
10/21/16.
– Paused for a week to work through its platform issues.
– Reopened the offering on 10/28/16 and closed 10/31/16 with a total
$10 million raised.
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22. VidAngel Story and Statistics
• Raised $10 million from about 7,500 investors
• Average investment was $1,340
• Share price = $3
• Minimum investment was $150, maximum was $25,000
• First raise of $6.25 million in two days was approximately
$223,000 per hour
• Platform – their own site
• Their user-base prior to raise – approximately 150,000
users.
• Unfortunately the Company was in a major lawsuit with
Disney and Hollywood Studios which it subsequently lost.
22

23. Biggest Technology Enabled
Opportunities in Entertainment
• Using new technologies to create effective and long lasting
relationship with film, TV and entertainment
viewers/participants.
• Focusing on consumer engagement through new platforms.
• Integrating E-Commerce with media as a new source of
revenue.
• Netflix, Amazon, Google, Apple, Twitter and Facebook are
changing the fundamentals of Entertainment business.
• It is all about finding, engaging and managing relationship
with a crowd that cares about your Entertainment formats
and stories.
• Through entertainment and creative storytelling on new
platforms, engage consumers effectively with product and
services, i.e. commerce.
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24. Creation of Unicorns in
Entertainment
There is no Uber, Lyft, or Airbnb in Entertainment.
Who could become an Entertainment unicorn?
• Company that has a unique relationship with its
viewers/consumers
• Company that connects Entertainment with e-commerce
• Company that creates Entertainment experiences with fans,
by the fans and about the fans
• Company that creates a new way of developing, monetizing
and distributing content
• Company that creates engaged eco systems of viewers,
ambassadors, consumers, and investors
24

25. Why Work with Hollywood Portfolio In
Entering This Eco System
• Our management team has unique background in
developing next generation Entertainment, technology,
retail, and other consumer ventures
• Our management team developed the very first Fortune
500 digital media accelerator at KPMG, then participated in
formation of NTT, Disney, and several other corporate
accelerators and innovation initiatives
• We spent our careers advising Entertainment and
technology startup companies during major technology
paradigm shifts
• We managed digital businesses poised to replace incumbent
offerings for several Fortune 500 companies
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26. APPENDIX A
Size of Crowdfunding and ICO Opportunities
26

27. Why Crowd-Focused Approach in
Entertainment
In the incubation and acceleration of growth ventures, speed
to market, appropriate capitalization and human capital all are
key ingredients for success.
Today, through Regulation A+ and Regulation Crowdfunding,
a consumer can be an investor in a venture, or a resource, or
even part of the management team, as well as a consumer of
the goods produced by the venture and a social marketing
advocate.
These fully engaged consumers have contributed to the
development of many high-growth company success stories in
technology and digital media, including some of today’s
“unicorns”.
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28. Why A Crowd-Focused Accelerator
(cont’d)
Alternatively, a consumer could be like a VC fund, by
managing and influencing a portfolio of investments, through
investment, resource assistance and marketing/advocacy.
If the consumers that supported Oculus VR through its
incentive-based crowdfunding campaign (by pre-purchasing
goggles totaling $2 million in revenue for the Company), could
have participated in the investment in Oculus VR, they would
have greatly benefited from the $2 billon sale to Facebook.
These are some of the key reasons why Hollywood
Portfolio is a Global Crowd-Focused Accelerator for new
and later stage ventures.
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29. Equity Based Crowdfunding
Managing multiple business initiatives by crowd-focusing is
fairly complex. Currently, companies can:
• Crowdfund through incentive based opportunities
• Market to the crowd
• Sell to the crowd
• Crowdsource for human talent and other resources.
• As of June 2015, companies can go through a Direct IPO or
raise growth capital through Regulation A+.
• As of June 2016, companies can raise startup capital
through Regulation Crowdfunding.
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30. Global Equity Crowdfunding
Market Size
• In 2017, the global equity crowdfunding market is
projected to be $3.6 billion and approximately double each
year. (Source: Massolution Report).
• Equity crowdfunding is predicted to surpass angel capital
which is about $20 billion globally, by 2019 and soon after,
venture capital, which is about $30 billion, and hold steady
at that level.
• According to the World Bank, equity crowdfunding will be
roughly $36 billion by 2020 and all crowdfunding will total
$90 billion.
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31. Equity Crowdfunding
and ICO Market Trends
• Before the equity crowdfunding regulations were adopted in
the U.S., only about 3% of the population was accredited to
invest in startups. Now everyone can invest.
• Startups can now raise money from anyone in the World
through the crowdfunding portals.
• Global joint venture companies can benefit from Regulation
A+ and have a publicly traded stock in the US.
• Last year there were 700 successful ICOs which raised
about $4.6 billion.
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