BLOCKFLIX

The world's first blockchain-powered entertainment finance company.

The new approach to double-digit investment returns.

At our very core, BLOCKFLIX™ is Hollywood's premier private lender for film, television, and premium digital/online content productions on a global scale. We've accomplished this over a decade of careful strategy development that couples a full-menu approach of production financing tools for producers and directors, with the skyrocketing demand for low to mid-budget ($5M - $50MM) projects to serve distribution platform needs.  

Investing in anything with significant return potential often requires increased risk; this is traditional investment theory. BLOCKFLIX™ has developed an industry-specific approach that changes that postulate. Through the new BLOCKFLIX™ Hi-Po Entertainment Production Capital (EPC), a 12.5% return on investment is targeted with a conservative risk profile. We achieve this via carefully curated lending options for entertainment productions that structure transactions to mitigate recoupment and performance risk. The investment capital we deploy is recovered at wholesale value prior to box-office or online release and completely decoupled from consumer acceptance. In our model, the performance upside (becoming a box office or streaming video hit) of any specific movie or television series is pure profit.

So why did we open up our investment capital opportunity to accredited investors outside of the entertainment industry? Easy: The demand for quality entertainment is at an all-time high right now. Studios and Streaming Video On Demand (SVOD) services have amassed huge, captivated audiences with not enough content to satiate viewer appetite. There's literally not enough capital financing available to serve the needs of producers and directors responsible for creating all of this content. 

Read more details below on why being an early-adopter to this investment vehicle can help you build real wealth.

How it works.

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Who can invest.

Domestic Investors

  • Physically based in the United States, but NOT necessarily a US Citizen

  • Must have annual income above $200,000 individually or $300,000 with spouse in each of the previous two years

  • If not qualifying through annual income, a minimum net worth of $1,000,000 excluding home and auto holdings is required, individually or jointly with spouse

The BLOCKFLIX™ Hi-Po EPC is a private placement offering, and as such must verify the accredited domestic investor requirements above. Clicking the Invest Now button below will start this process with our verification partner. 

International Investors

  • Physically based outside of the United States, including US Citizens

  • No annual income requirement

  • No net worth requirement

The BLOCKFLIX™ Hi-Po EPC is a private placement offering, and as such must verify the accredited domestic investor requirements above. Clicking the Invest Now button below will start this process with our verification partner. 

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The New Hollywood: 101

The major market shift we currently serve.

The production trend among the major film studios is an increasing shift towards larger budgeted “event” features (i.e., $100 million or greater) that offer more promise of being a runaway box-office hit. Think: Star Wars, Avengers, Frozen, The Lion King etc. Since these projects are typically self-funded and distributed by the major studios themselves, they only have the capacity to target 1-3 of these per year.

Consequently, studios have to increase their acquisition of third-party projects with smaller budgets (up to $50 million) in order to fill out their release slates and defray overhead. They do not, however, fund or distribute these productions solely. International distributors, which rely on the diminishing volume of studio product, are also in need of smaller budget quality content to fill their distribution pipelines. Similarly, SVOD platforms (Netflix, Amazon Prime TV, HULU etc.) demand smaller budget premium online content to satisfy the immense demands of their ever-growing subscriber base. ​

Independent film producers and directors are increasingly sought to provide these smaller budget projects. This is when they turn to BLOCKFLIX™ and why we finance their efforts. 

Why BLOCKFLIX™ is attractive.

Before BLOCKFLIX™, there wasn't a comprehensive and reliable financing solution for independent content providers. Typically these independent producers and directors would have to piece together a combination of financing through a long and difficult process with multiple lenders while lacking the knowledge, time and experience to arrange. Any single one of these financing links can derail a project at its worst, and at its best create pricing inefficiencies introducing unnecessary costs.

BLOCKFLIX™ is built to serve the financing and distribution needs of these producers and directors entirely with a full menu of services and solutions. We can unilaterally enable a project to succeed while providing our clients with a greater amount of creative control.

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What's Blockchain?

And why are we building with it...

Secure, transparent, and sound investment tech.

Put simply, blockchains provide a way to keep track of digital assets (money, votes, IDs, records of any kind) without the need for intermediaries, such as banks and other regulatory institutions. It serves as a public ledger system by recording and validating each and every transaction made, which makes it secure and reliable. It does this digitally through a massive network of computers that all verify and agree about the information, which makes the transactions immutable and prevents it from the threat of hacking.

We built the BLOCKFLIX™ Hi-Po EPC as a digital security with the help of tZERO, the global leader in blockchain innovation for capital markets. In doing so, we have done the following for our investors:

  • eliminated unnecessary middle-men complications

  • reduced fee overhead and settlement time(s)

  • increased security, privacy, and lowered the potential for hacking threats

  • expanded the fund's accessibility to a wider audience 

 

BLOCKFLIX

frequently asked questions:

 

Advantages & Benefits

Blockchain

Is this blockchain technology the same thing as Bitcoin?


You have probably heard of bitcoin because quite frankly, it's was the first and most popular application of blockchain technology, and it was the first cryptocurrency. With that said, the two are far from the same but do have a connection. The reason why cryptocurrencies can exist in the first place is because they are built on blockchain technology. Blockchains provide a way to keep track of digital assets (money, voter records, ID's, medical records) without the need for intermediaries, such as banks, regulartory bodies, and other financial institutions. It serves as a public ledger system by recording and validating each and every transaction made, which makes it secure and reliable. It does this digitally through a massive network of computers that all verify and agree about the information, which makes the transactions immutable and prevents it from the threat of hacking. Blockchain is the underpinning technology that maintains the Bitcoin transaction ledger. The blockchain that supports Bitcoin was done so to directly serve the needs of a cryptocurrency. For that reason, it took a while for businesses to realize that blockchain technology could be applied to an incredible array of industries and needs.




I see the value of Bitcoin fluctuate wildly even on a daily basis; will my BLOCKFLIX™ investment do the same?


To be blunt: absolutely not. Because the blockchain that Bitcoin is built on is completely unrelated to blockchains that us and many other businesses use, Bitcoin's value has literally zero impact on the value of our BLOCKFLIX™ Hi-Po EPC. When you invest with BLOCKFLIX™, you are putting your money into a private, secure, and discrete fund that gets deployed in the financing of productions for premium film and television studio content. Bitcoin is never involved in the process, nor will it ever be.




It seems like investing in a security token opens me up to the threat of hacking, is that true?


In short, no. Investing in a security token reduces the potential for hacking. The reason for this is due to the inherent design of blockchain technology. When new information is presented and validated, the details are included in new blocks which are always stored linearly and chronologically. This means they are always added to the end of the blockchain which contains a tremendous amount of information that came before it. After a block has been added to the end of the blockchain, it is very difficult to go back and alter the contents of the block. The reason? Because each block contains its own security code, called a "hash", along with the code of the block before it. Hash codes are generated by a math function that turns digital information into a string of numbers and letters. If that information is edited in any way, the hash code changes as well. In order to change a single block, then, a hacker would need to change every single block after it on the blockchain. Recalculating all those hashes would take an enormous and improbable amount of computing power. Even if it were possible, each computer in the blockchain network has its own copy of the blockchain that needs to be agreed on. With blockchain, there isn’t a single, definitive account of events that can be manipulated. Instead, a hacker would need to manipulate every copy of the blockchain on the entire network of computers. In other words, once a block is added to the blockchain it becomes inconceivably difficult to edit and impossible to delete. You can learn more by visiting the Investopedia article found here: https://www.investopedia.com/terms/b/blockchain.asp




Is investing with BLOCKFLIX™ anonymous? I have privacy concerns.


The answer was best explained by the Investopedia article found here. "Many blockchain networks operate as public databases, meaning that anyone with an internet connection can view a list of the network’s transaction history. Although users can access details about transactions, they cannot access identifying information about the users making those transactions. It is a common misperception that blockchain networks like bitcoin are anonymous, when in fact they are only confidential. That is, when a user makes public transactions, their unique code called a public key, is recorded on the blockchain, rather than their personal information. Although a person’s identity is still linked to their blockchain address, this prevents hackers from obtaining a user’s personal information, as can occur when a bank is hacked."





Financing Explanations

Financing

What is bridge financing?


Bridge financing is customarily provided on a short-term basis and enables the continuation of the production of the project when a financial closing is pending. This is usually a 30 to 90-day financing that typically commands a flat fee equal 15-20% of the amount of financing provided. Bridge financing is typically utilized to provide funding prior to formal documentation being completed for the overall production finance. This form of financing is often necessary to begin preproduction and secure talent so that principal photography can start on time. This can be 5-20% of total budget and typically recouped upon closing of the project’s full production financing.




What are production tax incentives?


State, local and international governments provide productions with monetary rebates or transferable tax credits for producing a project in that jurisdiction. Production incentive financings are collateralized by the amount of benefits projected to be generated during the course of production. The actual benefit is usually received six to 12 months following the completion of production.




What is gross corridor equity financing?


While still being a risk-adverse vehicle, gross corridor equity financing aka first dollar gross, is performance-based payouts on gross revenue.

These financings are collateralized by anticipated international and domestic sales, production incentives, and domestic distribution revenue. Recoupment of this form of financing would begin on delivery of the project to distributors with full recoupment by approximately six months following the initial release of the project in theaters or in the market, as applicable.




What are finishing funds?


This financing specifically enables producers to complete acquisition and development of a project. It typically has a return equal to 150% of the amount financed, which is normally paid within 12 months following financing. The model contemplates 10 investments of this type in amounts of $150,000. While returns are significant, this form of financing is more risky. Our model projects that of the 10 investments, six repay the investment and fees, one repays investment only and three are written off. This form of financing creates the opportunity to access a project perceived as worthwhile by Company, allowing us to provide the more lucrative forms of financing that Company offers.




What are gap and mezzanine/supergap financing?


Gap financing is the portion of a project’s capital structure that is collateralized by a projection of the unsold value of distribution rights of the project. This type of financing is required when at the time of funding the amount of acceptable distribution contracts adjusted for applicable advance rates plus all other acceptable collateral available is less than the total bonded budget of the project. Gap financing provides the producer with funding while additional distribution contracts are being put in place. Often the closing and documentation of presales can delay the ability to close the financing of the project and hinder the ability to lock in creative talent and secure their availability. In these cases there is an opportunity for gap financing to be provided to assist in getting a project financed prior to the project being fully collateralized by presales. The mezzanine/supergap tranche is the layer of financing directly subordinate to the gap portion. While gap financing typically provides the producer with financing for up to 20% of the budget, mezzanine/supergap financing often finances an additional 20% to 30% of the project’s budget at higher return rates.




What is bank syndicate financing?


Syndicate financing with partner financiers (banks, etc.) allows BLOCKFLIX™ to arbitrage the difference in lending rates and pricing, and replenish capital base, enabling more project involvement. The greater the number of projects your money is deployed in, the higher potential for “breakout.” Individual bank involvement amounts to 20% max of budget on a film, which enables BLOCKFLIX™ to bring a package of projects to banks and receive preferred financing rates in return.





Risks & Considerations

Blockchain

Is this blockchain technology the same thing as Bitcoin?


You have probably heard of bitcoin because quite frankly, it's was the first and most popular application of blockchain technology, and it was the first cryptocurrency. With that said, the two are far from the same but do have a connection. The reason why cryptocurrencies can exist in the first place is because they are built on blockchain technology. Blockchains provide a way to keep track of digital assets (money, voter records, ID's, medical records) without the need for intermediaries, such as banks, regulartory bodies, and other financial institutions. It serves as a public ledger system by recording and validating each and every transaction made, which makes it secure and reliable. It does this digitally through a massive network of computers that all verify and agree about the information, which makes the transactions immutable and prevents it from the threat of hacking. Blockchain is the underpinning technology that maintains the Bitcoin transaction ledger. The blockchain that supports Bitcoin was done so to directly serve the needs of a cryptocurrency. For that reason, it took a while for businesses to realize that blockchain technology could be applied to an incredible array of industries and needs.




I see the value of Bitcoin fluctuate wildly even on a daily basis; will my BLOCKFLIX™ investment do the same?


To be blunt: absolutely not. Because the blockchain that Bitcoin is built on is completely unrelated to blockchains that us and many other businesses use, Bitcoin's value has literally zero impact on the value of our BLOCKFLIX™ Hi-Po EPC. When you invest with BLOCKFLIX™, you are putting your money into a private, secure, and discrete fund that gets deployed in the financing of productions for premium film and television studio content. Bitcoin is never involved in the process, nor will it ever be.




It seems like investing in a security token opens me up to the threat of hacking, is that true?


In short, no. Investing in a security token reduces the potential for hacking. The reason for this is due to the inherent design of blockchain technology. When new information is presented and validated, the details are included in new blocks which are always stored linearly and chronologically. This means they are always added to the end of the blockchain which contains a tremendous amount of information that came before it. After a block has been added to the end of the blockchain, it is very difficult to go back and alter the contents of the block. The reason? Because each block contains its own security code, called a "hash", along with the code of the block before it. Hash codes are generated by a math function that turns digital information into a string of numbers and letters. If that information is edited in any way, the hash code changes as well. In order to change a single block, then, a hacker would need to change every single block after it on the blockchain. Recalculating all those hashes would take an enormous and improbable amount of computing power. Even if it were possible, each computer in the blockchain network has its own copy of the blockchain that needs to be agreed on. With blockchain, there isn’t a single, definitive account of events that can be manipulated. Instead, a hacker would need to manipulate every copy of the blockchain on the entire network of computers. In other words, once a block is added to the blockchain it becomes inconceivably difficult to edit and impossible to delete. You can learn more by visiting the Investopedia article found here: https://www.investopedia.com/terms/b/blockchain.asp




Is investing with BLOCKFLIX™ anonymous? I have privacy concerns.


The answer was best explained by the Investopedia article found here. "Many blockchain networks operate as public databases, meaning that anyone with an internet connection can view a list of the network’s transaction history. Although users can access details about transactions, they cannot access identifying information about the users making those transactions. It is a common misperception that blockchain networks like bitcoin are anonymous, when in fact they are only confidential. That is, when a user makes public transactions, their unique code called a public key, is recorded on the blockchain, rather than their personal information. Although a person’s identity is still linked to their blockchain address, this prevents hackers from obtaining a user’s personal information, as can occur when a bank is hacked."





Blockchain Technology

Blockchain

Is this blockchain technology the same thing as Bitcoin?


You have probably heard of bitcoin because quite frankly, it's was the first and most popular application of blockchain technology, and it was the first cryptocurrency. With that said, the two are far from the same but do have a connection. The reason why cryptocurrencies can exist in the first place is because they are built on blockchain technology. Blockchains provide a way to keep track of digital assets (money, voter records, ID's, medical records) without the need for intermediaries, such as banks, regulartory bodies, and other financial institutions. It serves as a public ledger system by recording and validating each and every transaction made, which makes it secure and reliable. It does this digitally through a massive network of computers that all verify and agree about the information, which makes the transactions immutable and prevents it from the threat of hacking. Blockchain is the underpinning technology that maintains the Bitcoin transaction ledger. The blockchain that supports Bitcoin was done so to directly serve the needs of a cryptocurrency. For that reason, it took a while for businesses to realize that blockchain technology could be applied to an incredible array of industries and needs.




I see the value of Bitcoin fluctuate wildly even on a daily basis; will my BLOCKFLIX™ investment do the same?


To be blunt: absolutely not. Because the blockchain that Bitcoin is built on is completely unrelated to blockchains that us and many other businesses use, Bitcoin's value has literally zero impact on the value of our BLOCKFLIX™ Hi-Po EPC. When you invest with BLOCKFLIX™, you are putting your money into a private, secure, and discrete fund that gets deployed in the financing of productions for premium film and television studio content. Bitcoin is never involved in the process, nor will it ever be.




It seems like investing in a security token opens me up to the threat of hacking, is that true?


In short, no. Investing in a security token reduces the potential for hacking. The reason for this is due to the inherent design of blockchain technology. When new information is presented and validated, the details are included in new blocks which are always stored linearly and chronologically. This means they are always added to the end of the blockchain which contains a tremendous amount of information that came before it. After a block has been added to the end of the blockchain, it is very difficult to go back and alter the contents of the block. The reason? Because each block contains its own security code, called a "hash", along with the code of the block before it. Hash codes are generated by a math function that turns digital information into a string of numbers and letters. If that information is edited in any way, the hash code changes as well. In order to change a single block, then, a hacker would need to change every single block after it on the blockchain. Recalculating all those hashes would take an enormous and improbable amount of computing power. Even if it were possible, each computer in the blockchain network has its own copy of the blockchain that needs to be agreed on. With blockchain, there isn’t a single, definitive account of events that can be manipulated. Instead, a hacker would need to manipulate every copy of the blockchain on the entire network of computers. In other words, once a block is added to the blockchain it becomes inconceivably difficult to edit and impossible to delete. You can learn more by visiting the Investopedia article found here: https://www.investopedia.com/terms/b/blockchain.asp




Is investing with BLOCKFLIX™ anonymous? I have privacy concerns.


The answer was best explained by the Investopedia article found here. "Many blockchain networks operate as public databases, meaning that anyone with an internet connection can view a list of the network’s transaction history. Although users can access details about transactions, they cannot access identifying information about the users making those transactions. It is a common misperception that blockchain networks like bitcoin are anonymous, when in fact they are only confidential. That is, when a user makes public transactions, their unique code called a public key, is recorded on the blockchain, rather than their personal information. Although a person’s identity is still linked to their blockchain address, this prevents hackers from obtaining a user’s personal information, as can occur when a bank is hacked."





Studios that Trust Our Financing Capital.