TOKYO: Phillip Securities Japan Ltd. has said it will begin selling on July 24 rights obtained in return for investment in film production.
The rights will be sold in small lots as digital financial instruments called security tokens. Purchasers can expect dividends from revenues linked to theater distribution and broadcasting rights as well as perks such as access to special footage information and invitations to exclusive events, the securities house said Friday.
It will be the first time in Japan that security tokens are used to solicit investments to raise money for making a film and distribute revenues from the work. The method may become popular as the entertainment industry seeks to revitalize itself.
The film “Hero’s Island,” directed by Keishi Otomo and set to be released next year, will be the first movie that adopts the scheme.
Based on a Naoki literary award-winning book by Junjo Shindo, the film depicts the lives of people who lived in Okinawa under U.S. occupation in the aftermath of World War II. It features actors Satoshi Tsumabuki, Suzu Hirose, Masataka Kubota and Eita Nagayama.
A total of 3,680 security tokens will be issued for “Hero’s Island,” for sale at 100,000 yen apiece. The proceeds, totaling 368 million yen, will be used for making the film through a film production fund.
Phillip Securities developed the small-lot investment scheme with blockchain technology, also used in crypto assets and nonfungible tokens, in collaboration with Securitize Japan K.K., which operates a security token issuance and distribution platform service.
Management of the film’s security tokens will be overseen by a subsidiary of Tokyo-based investment bank FinTech Global Inc.
“Issuing security tokens is effective in attracting foreign investment to Japan,” Phillip Securities Japan President Makoto Nagahori said. “We aim to promote the use of security tokens not only in movies but across various genres.”
JIJI Press