MOVIE CHAIN BY TVZAVR

INTRODUCTION

OVERVIEW

The proliferation of portable cameras and video editing software today has created new opportunities for both aspiring and established filmmakers. It is now possible to film an entire movie using only GoPro or an iPhone. However, this ease of production for filming, as well as reduction in costs, does not address the continuing need for a direct connection between independent filmmakers and their audiences. Currently, most of a film’s budget and revenues go to distribution and marketing third-parties instead of directly to filmmakers. While many filmmakers today turn to crowdfunding to secure funding, and in spite of the availability of crowdfunding platforms, thousands of small companies that produce independent films are still not able to monetize their creativity. This lack of funding leads to many talented filmmakers and screenwriters turning to exhibition venues, such as YouTube and other video blog platforms, for revenue.

Tvzavr has extensively studied these and many other problems faced by global independent film producers. Our new platform, MoviesChain by TVzavr, will bring radical changes to existing technological and marketing systems for film distribution. With our secure, tamper-proof, and failure-resistant system, based on blockchain technology, clients are able to gain access to a vast amount of unique cinematographic content that is not available from global chains, such as Netflix, youtube.com, or other similar services. Our aim is to occupy a multibillion dollar niche, using the wealth of our existing client base, our unparalleled connections in the independent movie industry, and our unique bespoke front-end platform that is available on Android, iOS,SmartTV, desktop, and set-top-box worldwide. MoviesChain by TVzavr is a game changer because it is the first film distribution platform based on blockchain technology. TVzavr’s MoviesChain disintermediates the usual independent film distribution industry, applying decentralization principles to an industry that is currently reliant on non-transparent, predatory practices. At its core,

  TVzavr MoviesChain’s embedded, immutable, and transparent accounting practices and attractive pricing will restore trust and confidence to creators of original content, thereby securing a path for freedom of artistic expression. Our ultimate goal is the creation and prosperous growth of a fully decentralized, independent film industry.

MOVIESCHAIN.IO

            The mission of MoviesChain by TVzavr is to provide independent filmmakers with a transparent system to distribute content on very attractive financial conditions globally, while providing our customers with affordable, quality independent films. MoviesChain by TVzavr will also effectively connect audiences with both independent filmmakers and the major studios.

           A team of over 70 employees at tvzavr.ru works to give the MoviesChain by TVzavr platform a solid foundation and the infrastructure development the project requires. Since 2009, tvzavr (the developer of the MoviesChain) has been providing video-on-demand (VoD) services. Our company currently broadcasts video entertainment to millions of people, both directly as well as through affiliated platforms that belong to the company. In 2017, tvzavr had 30 million unique users per month, with paid content views exceeding 365 million, and a revenue of $10 million for tvzavr. Telecom Daily reports that users recognize tvzavr as the best provider of entertainment content in the Commonwealth of Independent States (CIS). 

         As tvzavr develops MoviesChain, the next-generation system based on blockchain technology, our company enters the global market as an industry leader. By using its extensive client base, well-established connections in independent film production, and a unique user platform MovieChain by TVzavr will secure an important position in this multi-billion-dollar niche market.

OVERVIEW OF MOVIESCHAIN

         In order to solve the distribution and funding problems mentioned above, as well as several others, MoviesChain by TVzavr has developed an Ethereum-based platform, which directly links viewers with both major and independent film producers. Four main benefits of MoviesChain

A user-friendly navigation interface
State of the art recommendation system
Attractive pricing for viewers

The ZVR crypto-token

     MoviesChain works by having ZVR tokens transfer value from an independent film rights owner directly to a customer over the MoviesChain network. Independent film rights owners can customize conditions of access to the video content under the terms of Ricardian smart contracts. This will allow independent films rights owners both to dictate and enforce the terms of access to the video content. Both customers and independent films rights owners, or independent film producers, will also be able sell ZVR tokens on the secondary market.To enhance customer experience, the platform will be equipped with a recommendation system that is based on the selected country of the user, the user’s activity, as well as their search history.

      All content placed by rights holders or independent movie producers will be cryptographically protected, using MoviesChain by TVzavr’s own Digital Rights Management (DRM) system based on the Advanced Encryption Standard (AES-128), and distributed to clients via Content Distribution Network (CDN). MoviesChain by TVzavr will be one of the first blockchain platforms using Ricardian smart contracts, which are now legal in several U.S. states. Terms of use for ZVR tokens are written in the Turing-complete programming language, known as Solidity. Independent film rights owners will be able to design the terms of their ZVR’s, using a user-friendly Application Programming Interface (“API”). Specialized technical knowledge will not be required, which is the case with other smart contract programming languages.

        A Ricardian contract is both readable by humans as well as can be compiled by a computerized machine in ways that both machine and human agree on how to execute the contract. On an executive level, Ricardian contracts are traditionally legal documents that have several components, such as a cryptographic hash, that can be read by a machine. These legal documents are linked through a hash to an equivalent smart contract. By definition, smart contract refers to any contract capable of automatically enforcing itself, without a third-party between the individual participants. Smart contracts are written as computer programs, rather than in legal language on a printed document. Smart contracts are modular, repeatable, and autonomous scripts, usually running on a blockchain, which represent unilateral promises to provide a determinate computation.

  These scripts are stored in the blockchain at a particular address, which is determined when the contracts are deployed to the blockchain. When an event prescribed in the contract happens, a transaction is sent to that address, and the distributed virtual machine executes the script’s operation codes (or clauses), using the data sent with the transaction. Directly after the completion of the registration process on the platform, MoviesChain by TVzavr’s customers will automatically have a ZVR wallet created for them. This will be done for both content rights holders and independent film producers (Figure 9). Before the content becomes available for the viewers, MoviesChain by TVzavr will verify if the content belongs to a content rights holder, or to an independent film producer.

DEVELOPMENT PLAN FOR MOVIESCHAIN BY TVZAVR V. 2.0

GENERAL DEVELOPMENT PLAN

       After the launch of MoviesChain by TVzavr v. 1.0 platform, our plan is to further expand the product model in order to create a global social ecosystem that will fully support independent film producers. MoviesChain by TVzavr v. 2.0 will thus give every potential filmmaker everything they need to start a successful career.

The social ecosystem of MoviesChain by TVzavr v. 2.0 will include:

• MoviesChain University, a built-in education-enhanced experience

• MoviesChain Screen, a built-in social network that will provide communication with specialists to enhance the formation and development of project teams

• MoviesChain Investment platform, for quick and easy funding via crowdfunding to create new films

• MoviesChain Awards platform, which will allow talent to participate in local, national, and international film festivals in order to boost popularity of their films

• MoviesChain Target, an advertising platform that will bring together independent filmmakers from around the world and enable them to promote their projects to specific target audiences

• MoviesChain Promotion, a platform that provides strategic interactive marketing communications When MoviesChain by TVzavr v. 2.0 is implemented, an integrated social system, geared towards developing a marketing vision for independent filmmakers will be created. It will offer research pertaining to viewer interests, both on the platform and off. Advanced marketing solutions, the education platform, crowdfunding, and the social network will all allow independent filmmakers the opportunity to create high-quality content, advertise their films to audiences, and gain opportunities to fund their film project.

TOKEN OPERATIONS

TOKEN SALE PHASES

The Token sale will take place in 5 stages.

During the first stage, only whitelist members will be able to acquire tokens.

It is possible to sign up for the whitelist by submitting personal data on the site.

• The first third of whitelist members will receive a 25% bonus.

The remaining whitelist members receive a 20% bonus.

• The second stage has a bonus of 15% of free tokens.

• The third stage has a bonus of 10% of free tokens.

• The fourth stage has a bonus of 5% of free tokens

• The fifth stage has a bonus of 3% of free tokens.

A bonus of up to 10% will be given for the number of tokens purchased:

• 10,000 — 50,000 ZVR — +3% of free tokens

• 50,000 — 150,000 ZVR — +5% of free tokens

• 150,000 — 350,000 ZVR — +7% of free tokens

• over 350,000 ZVR — +10% of free tokens

Terms and conditions of the Token sale will be clarified closer to the launch

of the Token sale.

TOKEN SALE

ZVR will be launched on the Ethereum blockchain as ERC tokens.

After a certain number of tokens have been sold, the cost of tokens will gradually increase over time. The ZVR Token sale will take place from 2018 Q2 to 2018 Q3. The exact date of token sale to be announced. The softcap will be $5 million, and the hardcap will be $30 million. Acceptable cryptocurrencies that can be used during the process of Token sale are: ETH and BTC. The price for tokens will be determined when the Token sale launches. All unsold tokens will be burned. In the case that the revenue from the Token sale is less than $5 million, then all collected funds will be returned to the original owners. Since part of the payments will be made in fiat currencies, MoviesChain by TVzavr will buy a part of a token free float from exchanges at the prevailing market rate. That is necessary because 10% of all the revenues of the platform irrespectively of the method of payment is allocated to the Customer Rewards Program. We acknowledge that this may create substantial buying pressure on ZVR tokens on the secondary market. This happens if a large amount of transactions is made in fiat currency, and in the event this occurs MoviesChain by TVzavr will be forced to sell fiat currencies, and buy ZVR tokens in order to have enough tokens available for the bonus scheme described above (Overview of MoviesChain by TVzavr V. 1.0). In the case of a significant price appreciation, we may consider launching another token generating event to restore the market equilibrium. Given the fact that revenues of tvzavr alone were $10 million in 2017, we estimate that yearly revenues of MoviesChain by TVzavr will be around $50-$100 million which will create a significant buying pressure but will not destabilize the market completely. Therefore, in our base scenario an additional token generating event will not be needed.

TOKEN DISTRIBUTION

100 million tokens will be issued:

• 70% will be distributed during the initial sale

• 5% will remain in the reserve fund in the case it is not possible to purchase tokens on the secondary market for the reward program

• 2% will be set aside for the bounty campaign

• 23% will be transferred to the initial investment team

All allocations will be changed proportionally, keeping the same percentage of allocation for initial sale, reserve fund, bounty campaign and allocation to the team, if less than 70 million tokens are sold during the initial sale.

Distribution of funds received from the original token release:

• Marketing-50%

• IT Development-20%

• Operating Expenses-20%

• Legal Support-5%

• Board of Directors and Advisory Board-5%

TOKEN ISSUE

ZVR tokens will be issued by MoviesChain by TVzavr. The company was created with the purpose of issuing tokens and is registered in the British Virgin Islands.

DILUTION POLICY

MoviesChain by TVzavr will not dilute the value of ZVR tokens by generating additional ZVR tokens for MoviesChain by TVzavr v. 1.0. Additional tokens may be issued, only in the case of significant price appreciation of ZVR token and MoviesСhain by TVzavr’s inability to buy tokens from the secondary for the bonus scheme described in the Token sale Phases.

ZVR TOKEN UTILITY

    ZVR token owners have the right to use them to watch independent films as well as other movies on tvzavr.ru and ruskino.net on all devices. There are more than 40,000 films on tvzavr.ru and ruskino.net platforms. They will also be able to participate in the Customer Reward scheme described in Overview of MoviesChain by TVzavr v. 1.0.

   Another important aspect of owning tokens will be the ability to give them to other users who have left reviews or recommendations for a film. This motivates users not only to consume content, but also to create a quality ratings and feedback system. Token holders will not be able to gain revenues from passive investment.

DISTRIBUTION

After the Token sale, the tokens will be cross-listed on cryptocurrency exchanges, potentially Bittrex, Poloniex, Kraken, and others.

for more information about us you can contact us on:

Facebook:https://www.facebook.com/movieschain

Twitter:https://twitter.com/movies_chain/

Telegram:https://t.me/movieschain

Reddit:https://www.reddit.com/user/movieschain/
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