Hendrik Hey is the founder of MILC (Media Industry Licensing Content), a blockchain-based content licensing company aimed at democratizing the content media buying and distribution industry. MILC is a project of the European media giant Welt der Wunder, which Hey also founded more than 25 years ago. For more information about how MILC empowers content creators in web3, please visit https://www.milc.global.
TFV: Hendrik, although The Film Verdict business team is collaborating with you in the first Metaverse Film Festival, ALPHA, the editorial team wanted to understand more about your vision of the future of film distribution, especially during the European Film Market. But before we get there, tell us about how you started off in journalism and what kicked off a career in media working a “hot-line” on a radio station in Berlin, and from there creating the international success World of Wonders, and today, the CEO of World of Wonders TV?
Basically, I belong to the group of so-called science producers. As such, I sometimes have the good fortune to see certain developments a little earlier than others. I covered bitcoin back in 2010, when it was nothing more than an exciting experiment with no specific value. I was totally fascinated by the idea of blockchain technology. In 2016, I decided to turn a traditional media company into a fintech media house, with its own token and blockchain-based applications that fit our media industry. This process took a few years because everything was still so new and there was almost no one to ask how to do anything. More and more IT developers came on board, so we are now very strong in software development. That’s why we heard about the Metaverse idea very early on. When we started developing, the term didn’t even exist. But it was very clear to us that a new Internet revolution was coming, and we needed to be part of it early on. Our first Metaverse went live in November 2021. Then we threw it all away and started again. Today’s second Metaverse went live in May 2022, and we have been developing it ever since. What is it all about? It’s nothing more than making the internet 3-dimensional. When you think about it, you just have to start dreaming.
TFV: Many professionals in the traditional media of television and film roll their eyes when they hear of the metaverse, crypto, AI, and blockchain, yet this is your world now, how do you approach these executives understanding what you are building and the value of what you are building?
Back then, professionals rolled their eyes when the internet came along. They rolled their eyes when e-commerce took off and they laughed when social media platforms appeared. They have been utterly frustrated and shocked to see structures such as ITunes, Spotify, Netflix and Amazon Prime carving up the major media markets. If you don’t learn from that, you’re just going to continue to ignore development that I believe is more powerful than all the above examples put together.
TFV: What is Media Industry Licensing Content, MILC? How does it work? And why is it important to embrace?
The MILC platform is an open marketplace for all content providers. We focus on film/television, music, publishing and games. In addition, there is the 3rd dimension, where our viewers can finally interact with us, the creators. The platform sees itself as an infrastructure where everyone can choose their own business model. I can share my content with the community for free. Then I get a direct 50% share of the advertising revenue generated by my content. I can also sell or rent my content to the user. Or I can license my content to other platforms. There are also NFT marketplaces to finance new content and many other ways to realize your vision. We believe that a place where the best in media and entertainment work directly with their users will be of the greatest value to the users. After all, we’re doing it all for them.
TFV: For many reasons, many content sellers are very nervous about selling digitally, what can you say to calm those fears and does MILC provide a safer environment? And how do you introduce this concept to traditional film and television producers who already have a difficult time grasping some aspects of the digital sales platforms?
It’s all going to be a lot easier because I’m talking directly to my target audience. I don’t need big structures to position myself in the market. Whether I’m an individual producer or a studio, everyone has the same opportunities. Rights and licenses are securely managed in the blockchain, so I can also save on legal fees in the future. I’m also visible all over the world, no matter where I’m from. This brings together partners who might never have met.
TFV: Speaking of digital sales platforms, what is the difference between MILC and some of the digital sales platforms that are rolling out into the film industry these days?
The MILC platform is a kind of YouTube for free content, it is like Netflix for subscription models, it is like iTunes for paid content and it is a professional marketplace for licenses. It’s also a marketplace for art, music and games. But unlike any other platform, it also offers services, lifestyle and e-commerce. Advertisers will also find many new ways to express themselves in the Metaverse, a platform for platforms that want to try out the MILC Metaverse world. We are just asking for a very small infrastructure tax to keep the store running and to keep developing. We want the money to go to those who create good content.
TFV: Lately the Metaverse and all things surrounding Blockchain, NFT’s, crypto have been getting some poor press; how do you respond to this sort of news stories and what is MILC doing differently?
Everything new is hyped and then bashed. Crypto has been talked to death for years and is still around. The Metaverse movement is just beginning. But we journalists only think in the short term, and it’s a lot of fun to find everything stupid at the moment. But that doesn’t change the fact that the trend is unstoppable. “Ready Player One” is going to happen, whether I like it or not.
TFV: What is the relationship between MILC and World of Wonders TV and Welt Der Wunder, that you also founded twenty-five years ago? Do they interact together?
Welt der Wunder has long been a traditional broadcaster, with classic productions and its own TV stations. MILC is our international brand. Now we are transferring all our content, our knowledge and our networks to other platforms, which we believe will change many old structures in the future. But it will always be about telling good stories for our users on these platforms, that will not change.
TFV: Some may say you are a bit of a crazy entrepreneur just riding the metaverse crypto blockchain craze, what do you say to that?
Thanks for the compliment. I do my best.
TFV: The metaverse and MILC sounds very ambitious, but how do you make money? And what are the opportunities for 3rd parties and filmmakers to develop a revenue stream on the metaverse, or more specifically on MILC?
While we want to minimize interference with our partners’ business models and maximise their profits, we own the advertising space in the MILC Metaverse. We are already in contact with all the world’s leading media agencies and we know that big brands in particular are looking for a platform to try out the Metaverse. We are very good at helping them and developing exciting new concepts with them. But there is a big difference here too. All advertising revenue from the platform is shared fairly with our content partners and our users. If our partners don’t give our users good content, we are not interesting for advertisers, so it makes a lot of sense to share our success with everyone.
TFV: Recently you and the publisher of The Film Verdict announced a partnership to create the first Metaverse film festival, titled ALPHA. Why create a film festival on the metaverse and what added value does it have to, lets say the Berlinale or to a Sundance?
The Alpha Film Festival is a great showcase for an event with great quality. Many professionals from the film industry supported us, the audience could vote for their favorite film, there were very interesting discussion sessions. Together we want to make this brand big and relevant, but it’s meant to be a festival of festivals and we would love any physical festival to join.
TFV: Do you see a day when major events such as the Academy Awards will take place in the Metaverse?
If they are clever, maybe next year. The advantage is that you can start smaller and learn. The Alpha Film Festival can complement existing festivals and create new experiences.
TFV: And lastly, can you look into the future and predict who will win the Academy Award this year? All joking aside, any favorites of yours to that you would like to see win an Oscar?
That is a question concerning the future that I do not want to answer. I wish everyone to win this incredible prize.
