Mugafi, an AI-based platform focused on entertainment intellectual property (IP), has teamed up with Avalanche to tokenize various media assets including films, anime, and music. This partnership aims to facilitate creators in funding and directly distributing projects on the blockchain.

This initiative looks to leverage Mugafi’s catalog comprising over 1,000 entertainment properties. The company’s AI tools, developed on numerous scripts and narratives, will help in assessing projects prior to their onchain financing.

Mugafi and Avalanche intend to invest over $10 million into entertainment IP, with aspirations to scale this investment to exceed $1 billion yearly.

Avalanche has stated that the collaboration illustrates how its network can enable the issuance of real-world assets at a large scale. The aim is to utilize Avalanche’s robust infrastructure for funding, tracking, and distributing entertainment projects on the blockchain.

Mugafi’s Kuberaa film. Source: Mugafi

Established in 2020 in India, Mugafi receives support from numerous entertainment and investment companies like Nexus VP, HashedEM, Netflix, Amazon, and Panorama Studios. Its upcoming film, Kuberaa, is projected to achieve $35 million in box office revenue and will be available via Amazon Prime Video.

The partnership is set to promote new job roles in AI, production, blockchain operations, and compliance, anticipating over 1,500 opportunities for creators and studios across regions including India, North America, Japan, and South Korea.

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Blockchain in entertainment and film

Efforts to bring entertainment IP onto the blockchain have been intensifying for years, with various creators and platforms pioneering the tokenization and management of rights through Web3.

In September, Animoca Brands partnered with Ibex Japan, an innovation branch of Antler, to create a Web3 fund aimed at bringing Japanese anime and manga IP onto the blockchain, unlocking value in a largely underutilized catalog.

PIP Labs is gaining ground in the Web3 IP sector with its Story Protocol, a layer-1 blockchain engineered to manage and program IP on the blockchain.

Founded by former Google DeepMind product manager Jason Zhao in 2022, this initiative allows creators to tokenize their work, log IP on the blockchain, and establish terms for usage, sharing, and adaptation. The framework is designed to ensure rights holders retain control over their content and its future use.

In August 2024, PIP Labs raised $80 million in Series B funding spearheaded by a16z Crypto and Polychain Capital to enhance the Story Protocol.