Will Hollywood Embrace Blockchain Technology for Accounting?

The debate over whether Hollywood will ever fully embrace cryptocurrency and blockchain technology as a solution to the longstanding issue of Hollywood accounting is heating up in the latest episode of Variety podcast “Strictly Business.”

Tarun Chitra, founder and CEO of Gauntlet, a research and advisory firm, and co-host of the crypto-focused podcast “The Chopping Block,” along with Lee Reiners, a professor at Duke University specializing in financial regulation, delve into the potential benefits and drawbacks of utilizing blockchain in the entertainment industry.

Chitra, a proponent of decentralized finance, believes that blockchain technology could revolutionize the way deals are structured in Hollywood, particularly for projects with multiple profit participants over an extended period. He argues that placing trust in the blockchain community rather than traditional financial institutions could lead to a new era of investment and risk-taking activities independent of Wall Street.

On the other hand, Reiners remains skeptical of the widespread adoption of cryptocurrency and alternative finance options, citing concerns about consumer vulnerability to scams and regulatory challenges. Despite recent approvals by the Securities and Exchange Commission for Bitcoin exchange-traded funds, Reiners believes that the risks associated with crypto investments outweigh the potential benefits for average consumers.

As the debate continues, the future of Hollywood’s relationship with blockchain technology remains uncertain. Will entertainment industry dealmakers ultimately embrace the transparency and permanency of blockchain ledgers, or will regulatory concerns and consumer protection issues hinder widespread adoption? Stay tuned as the conversation evolves on “Strictly Business,” Variety’s weekly podcast exploring the business of media and entertainment.