The benefits of a digital CAM compared to a traditional collection agent
Next up on our educational series, we wanted to tackle the distinction between a traditional collection agent, also known as a collection account management (CAM) service and what we have built as a digital CAM.
The basis for any CAM service is the collection account management agreement (CAMA) between the main stakeholders in a film (producers, sales agent, investors), incorporating the recoupment schedule of the film (including all beneficiaries and film stakeholders) and a bank account opened and managed by the collection agent as a neutral trustee. Any present or future distributors are instructed to pay the revenues according to the distribution deals into this collection account. The collection agent then distributes these revenues to the stakeholders according to the recoupment schedule.
Both traditional and digital CAMs are built on principles of transparency, reporting and protection of funds.
A traditional collection agent typically offers non-automated distribution of funds, based on spreadsheets. Any interim reports are usually charged as an additional service. The services typically put in place a threshold for amounts withdrawn, in order to avoid micro payments and an increased frequency. Their service also tends to pay a limited number of stakeholders, with any extra beneficiaries coming at an additional cost.
FilmChain is the only digital account management service, whose principal differentiator from a traditional CAM is its state-of-the-art technology. This allows the digital CAM dashboard to be highly customizable and proficient in tackling complex multi territory co-productions.
On the one hand, through cloud-based technology, FilmChain is built on a securely protected software system that interfaces between the platform and its banking partners. This technology also enables the automated distribution of funds as requested by the beneficiaries. The recoupment schedule is embedded onto the platform, mirroring what is reflected in the CAMA. This personalised dashboard is created in-house for maximum convenience for clients and can be amended at any time.
On the other hand, the blockchain element provides an extra security layer and allows for every transaction to be recorded. The money distribution process is replicated on a private Ethereum to keep an immutable history of payments for truthfulness and transparency. Every participant’s ownership is also recorded.
In addition to providing a digitised royalties dashboard defining the recoupments for countless beneficiaries, the integration with payment processings platforms such as Wise makes the payments automated with no withdrawal thresholds for our users. The payments are thus fast, executed in near real time. FilmChain also offers real-time reports and information on demand for all beneficiaries logged onto the platform. Data on demand is provided to signatories through a rights tracker page showing the distribution status of the film, reports providing granular details on each transaction, statements on withdrawals similar to a banking app, and an analytics feature with rich insights and data visualisation.
Since FilmChain’s inception, our mission has been to provide the industry with a state-of-the-art digital tool enabling traceable, secure and fast payments, smart interactive reporting and limitless customisation when it comes to complicated co-productions. Since then, we have had the absolute pleasure to work with film professionals who not only benefited from what FilmChain has to offer, but also actively contributed towards further innovation. FilmChain caters to a wide array of worldwide clients, established production houses, sales agents and financiers, talent agencies as well as public and private investors. The founders at FilmChain have a huge passion for the film and TV industry, and the whole team believes in the mission of improving the market with better access to money and data.
If you are keen to see a demo of our platform, please email team@filmchain.co and we’d be happy to connect!
