By The global leader in blockchain innovation for capital markets, tZERO has recently revealed its partnership with the media startup BLOQ FLIX to tokenize film financing. BLOQ FLIX will reportedly provide the subsidiary company with technology services to improve the entertainment business.
tZero in a dilemma
Unfortunately, the partnership announcement was made when the company was going through critical situations. Before the unexpected announcement, tZero was facing stiff reorganization that was followed by a quarterly loss of over $10 million. The massive loss seemed to be not enough; Patrick Byrne, the Overstock CEO had also departed from the company without notice. Patrick’s departure came as a shock to many.
Conversely, according to the press release, the collaboration is referred to as “Blockbuster meets blockchain.” The firms have therefore divided their duties in regards to specialization, intending to establish a new firm financing route for internet, television, and studio projects. tZERO’s tokenization protocol will be used in this case. Through tZERO and BLOQ FLIX partnership, the financial capabilities for BLOQ FLIX will be empowered by the blockchain technology.
Only select few can invest
In addition, BLOQ FLIX will allow only qualified investors to get involved in the funding procedures. As clearly stated by Saum Noursalehi, tZERO CEO:
“We are thrilled to partner with the BLOQ FLIX team to bring a secure and innovative investment alternative to film financing. Our continued goal is to tokenize, and trade assets that can benefit from blockchain technology and digitizing film financing fit this model nicely,”
According to BLOQ FLIX CEO Brandon Hogan, studios and producers will receive funds through blockchain that will streamline the funding process. Additionally, the JumpStart brokerage security will take over and serve as a placement agent for the provided offerings. JumpStart CEO Jonathan added:
“All of us working together is a huge opportunity for both BLOQ FLIX and investors to facilitate a vision of how media could now be financed. There are enormous synergies in our solution that will enable us to drive immediate value.”
Besides, BLOQ FLIX being one of the most rapidly growing markets that have focused on working on inadequate needed premium content. The press release has also exposed how committed Hogan and BLOQ FLIX co-founder Jonathan Helmuth who contributed throughout their careers over $100 million in the production funds.
However, back in July tZERO announced that it would raise and tokenize more than $40 million in the funding process for Nolan Bushnell’s biopic the Atari founder together with financing company Vision Tree and film production. This was because tZERO was aiming at utilizing the blockchain technology to bolster and improve market strategies in getting rid of traditional institutional market structures.
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