Digital Film Cloud Network is launching an online marketplace aimed at simplifying the trading of global film rights and replacing the current paperwork-heavy method of doing so.
DFCN has been developing its system for two years and staged a beta launch during the Cannes market with 150 films. Since then, it has been able to sign up 6,000 titles for the opening of the American Film Market.
“The motion picture industry’s adoption of open standards-based, government-grade, secure technologies for digital film packaging, rights licensing, and distribution coupled with the growing cultural acceptance of online marketplaces introduces the disruptive forces necessary to greatly improve and streamline how film rights licenses are transacted,” said CEO Ray Bell. “The industry is ready for this advance in technology to make their lives easier and we are excited to be launching this brand new company at AFM.”
The DFCN Film Rights Marketplace is free for use with sellers paying a 6% transaction fee on receipt of payment from the buyer. Bell said the fee is in the same range of what brokers charge.
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The basic tool of the software is the Film Book, a document that includes all assets available for each film including the synopsis, talent information, images, trailers, screenplay, distribution agreements and secure screening capabilities of completed films. Industry advisers participating in developing the DFCN software platform include producers Hal Sadoff, and Hawk Koch plus Cinemark Holdings director and Century Theatres CEO Ray Syufy.
“DFCN has real potential to be a truly disruptive force within the film industry,” Sadoff said. “Essentially sales agents and distributors can make licensing rights available in a non-exclusive way, enabling ancillary revenues to be tapped in a highly cost effective and efficient manner.”
Bell is a former exec at Oracle and Cisco and helped launch startups SmartPipes and Silver Spring Networks. Chief operating officer Alfredo Guilbert was involved with the startup 4Mads, which provided the design basis for the DFCN system.
Syufy said the new service could help exhibitors. “With the complete transition to digital projection systems and online delivery services, theater owners can now leverage the DFCN Film Rights Marketplace to efficiently obtain and exhibit demographically targeted ancillary content during the days of the week when theater attendance is generally low,” he said.