Modern Cinema Group has filed a patent application for a system designed to solve problems relating to the financing, distribution and promotion of media assets, including movies, television and electronic games. The patent application filed with the U.S. Patent and Trademark Office provides the system design and architecture that allows a futures exchange to trade and hedge media assets in an effort to keep more cash within the distribution supply chain, therefore reducing dependence on banks.
Modern Cinema Group’s patent pending approach allows for media assets to be divided into individual futures contracts that can be listed on a futures exchange. Such an approach allows for producers to receive production financing and for platform operators (on-line, mobile, cable TV, Satellite TV, broadcasters and IPTV) to own equity interests in the content titles they distribute. Such equity interest owned by platform operators can result in significant revenues over time that can be used to reduce the overall cost of content acquisition. Platform operators can also contribute ad slots within a pay-in-kind model to help lower promotional costs as well. And finally, the model allows for unprecedented hedging tools and facilities that can be used by both sides of the supply chain in the same way insurance policies protect owners of physical properties.
Ross Cooper, CEO of Modern Cinema Group said, “Ever since the first patent application was filed back in 2007, people within the industry instantly understood its merits. After taking trips to India and visiting large platform operators in Asia, we received nothing but encouragement. After experiencing some speed bumps in 2010, we re-crafted the model until all of the puzzle pieces fell into place so as to provide timely solutions to an industry that still operates by way of trade shows, face-to-face meetings, phone calls and occasional parties. This patent disclosure provides the means and methods for placing major financing and distribution functions on-line, increasing efficiencies significantly. In some cases, as much as 40 percent.”