Challenges in Traditional Movie Funding

1. Limited Access to Capital:

• Exclusivity of Investment Opportunities: Traditional movie funding often limits investment opportunities to a select group of individuals or institutions, leaving out smaller investors and fans who might be interested in supporting film projects.

• High Entry Barriers: The significant capital required for investing in film production can be a barrier to entry for many potential investors, restricting the flow of funds to a narrow segment of wealthy entities.

1. Lack of Transparency:

• Opaque Dealings: The film industry is notorious for its complex and often opaque financial arrangements, which can obscure the true state of a film's financing and revenue distribution.

• Delayed Reporting: Traditional funding methods can result in delayed financial reporting, making it difficult for investors to get timely insights into the performance of their investments.

1. Exclusion of Small Investors:

• Concentration of Power: The control over film financing and decision-making is often concentrated in the hands of a few major players, excluding smaller investors from having a say in the creative and financial aspects of film production.

• Limited Participation: Smaller investors typically have limited avenues to participate in the financing of large-scale film projects, which can lead to a lack of diversity in the types of films that get produced.

1. Challenges in Traditional Movie Funding:

• Complex Financing Structures: Traditional film financing involves a variety of complex structures, such as pre-sales and distribution deals, which can be difficult to navigate and understand for those outside the industry.

• Risk Concentration: The risk of film production is often concentrated among a small number of investors, which can lead to high levels of exposure and potential financial loss if the film does not perform well.

1. Governance and Decision Making:

• Limited Influence: In traditional settings, investors may have little to no influence over creative decisions or the strategic direction of the film project, leading to potential misalignment between investor expectations and project outcomes.

By tokenizing "Sangamithra," the project aims to address these challenges by offering a more inclusive, transparent, and accessible funding model that leverages blockchain technology to benefit a wider range of stakeholders.