The Intersection of AI, Blockchain, and Intellectual Property

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In the latest edition of Crypto for Advisors, Shivani Phull from Pixelynx discusses how Black Mirror is utilizing blockchain to enhance fan engagement and content evolution.

Next, Eric Tomaszewski from Verde Capital Management shares insights on the appeal of these innovative products for the upcoming generation of investors in Ask an Expert.

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– Sarah Morton

Storytelling 3.0: The Intersection of AI, Blockchain, and Intellectual Property

Exploring how Black Mirror’s blockchain experiment is setting a precedent for the future of entertainment monetization.

Conventional storytelling is reaching its limits. The outdated one-way consumption model that has dominated entertainment is increasingly misaligned with what digital-savvy audiences expect today. Now, as modern technologies emerge, entertainment intellectual property (IP) is undergoing a major transformation.

The Journey from Bandersnatch to Blockchain

Black Mirror has continuously challenged existing norms. In 2018, the series made waves with Bandersnatch, an interactive episode that pointed towards a significant transition: from passive viewing to active narrative participation.

This transition is gaining momentum. Members of Gen Z and Gen Alpha grew up in environments like Minecraft, Roblox, and Fortnite, where user-generated content is the core of their experiences. These audiences desire more than passive consumption; they want to engage, influence, and own the stories they interact with.

Transforming Traditional IP Revenues

Historically, creators and IP holders generated revenue through licensing deals, syndication, product placements, and ticket sales at theaters. However, the landscape is shifting due to the rise of generative AI. Tools like OpenAI’s Sora or Runway enable anyone to produce derivative works, creating both challenges and opportunities for original IP owners. The imperative for IP holders is evident: maintain narrative control or proactively adapt to new frameworks that empower and expand their narratives.

This is where blockchain technology comes into play.

Blockchain: The Backbone of Interactive IP

Blockchain introduces a vital structure that facilitates:

On-chain IP verification — utilizing blockchain to authenticate ownership of creative works, ensuring security and transparency.
Composable rights — allowing content to be dismantled into smaller segments that can be reused, remixed, or merged with new works, fostering microlicensing opportunities.
Community ownership and engagement rewards — enabling fans to hold tokens that grant them exclusive access and advantages as a project evolves.
Incentives for creators and fans through tokenization — digital tokens rewarding contributions, collaborations, or active participation in the community.

This model paves the way for new storytelling avenues, where fans become stakeholders who actively shape narratives tied to their preferred IPs rather than merely being observers.

Case Study: Black Mirror Expands into Web3

Banijay Rights, the global distribution arm of Banijay Entertainment, which manages Black Mirror, has teamed up with Pixelynx Inc. and KOR Protocol, a Los Angeles-based blockchain infrastructure and entertainment firm co-founded by renowned DJs Deadmau5 and Richie Hawtin. Under the guidance of CEO Inder Phull, Pixelynx has worked to transition the Black Mirror franchise onto the blockchain in an interactive, compliant, and community-centric way.

Their current project involves a token inspired by the Nosedive episode, whereby fans can connect their social media accounts and wallets to earn a reputation score. With over 300,000 participants registered, leading contributors gain access to special experiences and incentives, presenting IP owners with fresh avenues to engage and reward their most dedicated supporters.

The Crossroads of the IP Industry

The future of entertainment hinges on adopting new structures that clearly define IP usage, uphold integrity, guard rights, and allow for fair value distribution to both fans and creators. This marks the dawn of a new chapter for IP: one characterized by protection, engagement, and sustainable revenue models.

By transitioning IPs to interactive, tokenized, and blockchain-based formats, rights holders are not merely experimenting; they are drafting the framework for Storytelling 3.0.

– Shivani Phull, CFO, Pixelynx Inc.

Ask an Expert

Q. What does “ownership” signify in the Web3 era, and how does it differ from traditional investment?

A. In the context of Web3, ownership extends beyond asset possession. It involves active engagement in a community. For example, owning a Black Mirror token means influencing governance, accessing unique ecosystems, and cultivating a digital identity that can appreciate over time. Unlike conventional stock ownership, this represents a participatory role; you are a stakeholder rather than just a shareholder.

Q. Can reputation-based tokens derive economic value from behavior, and is that sustainable?

A. Yes, but it comes with complexities. The Black Mirror token introduces a gamified approach to trust, where on-chain conduct and social interactions yield real rewards. However, as a financial advisor, I would advise caution—this innovative model introduces performance-related risks. Nonetheless, it signifies the path forward for digitally native younger investors.

Q. Could these tokens serve as a novel “digital yield” for younger investors?

A. Certainly. Instead of traditional fixed income yields, we are looking at engagement yields. The more actively you participate and establish credibility, the greater potential rewards you could receive. These may include exclusive access, discounts on platforms, or even token-based income. This represents a fresh incentive model in many respects.

In conversations with clients, I describe this phenomenon as behavioral finance in action. With appropriate risk management and time investment, it transforms into an asset that generates influence and access. This acknowledges that fulfillment and value differ from person to person; not every return is monetary.

– Eric Tomaszewski, financial advisor, Verde Capital Management