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description: Main challenges and problems
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# Challenges & Problems

#### Industry Oligopoly & Vertical Integration

The movie industry is composed of three vertical layers: production, distribution, and exhibition. In America, the big six conglomerates and a few major studios show strong presence in production (investment) and distribution.  In other countries conglomerates can control exhibition as well, such as South Korea. Netflix and Amazon Prime Video are focusing on vertical integration by owning its original content and using their distribution system to deliver that content to its subscribers. Accordingly, consumers have no access to content that these institutions choose not to invest in. A few powerful corporations with strong capital are thus limiting the consumers’ right to enjoy various content and the film producers’ opportunity to release their work to the wider public.

Thats why OpenMotion creates an ecosystem, which decentralizes and liberalizes the animation market where even small studios or solo creators could find some believers and fanbase without the support of industry giants.

#### Limited Funding Opportunities

The animation industry, known for its creativity and innovation, often faces challenges related to limited funding opportunities. Despite the widespread appeal of animated content, securing financial support for projects can be a hurdle for many creators. Animation production requires significant resources, from skilled talent to cutting-edge technology, leading to higher budget requirements. Limited funding can constrain the industry's ability to explore new ideas, invest in emerging technologies, and produce content that pushes artistic boundaries. Overcoming these challenges necessitates collaboration between creators, investors, and industry stakeholders to explore alternative funding models and ensure the sustained growth and diversification of the animation landscape.

Thats why OpenMotion creates a launchpad, which decentralizes and liberalizes the animation market where even small studios or solo creators could find some believers and finance their ideas

#### Nontransparent Revenue Share and Date

The recipient is unable to verify the accuracy of the data. The sheet does not disclose how revenue was affected by discounts, promotions, marketing, nor viewers’ data (device, age, gender). Sales reports with no transparency or verification method creates low credibility in the business; creators without audience information disables any viewership insight from their content production.

That's why OpenMotion has created the NFT licences for distributors which guarantee the transparent and fair revenue sharing model based on smart contracts.

#### Limitation of content Distribution

It may seem like the advanced online streaming technology has provided audiences with a wider selection of animation films, but the centralised distribution infrastructure has yet to change, and is still a strong barrier for indie animation makers to go abroad.

Every year, countless films are produced and recognized for their quality at international animation festivals, but the difficulty of finding distributors in each country limits the film producers’ ability to deliver their work to the audience.

That's why OpenMotion has created a unique feature  - Streaming house, which streams the animation content , empowered by OpenMotion,  24/7 for the community.

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