KEY TAKEAWAYS
- The Horror Section is transforming the horror film industry by using blockchain technology to engage fans as stakeholders.
- Co-founded by Eli Roth, the company raised over $5.5 million from more than 2,500 investors, allowing fans to invest in the company rather than individual films.
- Partnering with Sui and Republic, The Horror Section offers tokenized real-world assets, enabling global participation and simplifying the investment process.
- The studio plans to expand beyond films, creating a library of intellectual property and embracing future technologies to enhance fan engagement.
The Horror Section is revolutionizing the horror film industry by leveraging blockchain technology to engage fans as active stakeholders. Launched in March 2025, the company was co-founded by Eli Roth, Jon Schnaars, and Media Capital Technologies. It has partnered with Sui and Republic to raise funds and share profits directly with fans who invest in the venture.
During its initial fundraising round, The Horror Section attracted over 2,500 investors, raising more than $5.5 million. Fans could invest in increments as low as $100, with accredited investors having the option to invest in the company’s equity using stablecoins. Roth, known for directing horror films like ‘Cabin Fever’ and ‘Hostel,’ serves as the creative leader, while Schnaars, a seasoned horror enthusiast and CEO, manages the operational aspects.
Innovative Investment Model and Film Production
The Horror Section’s approach to funding involves partnering with Republic to offer fans partial ownership of the company. This model allows fans to invest in the company rather than just individual films, providing them with a stake in the company’s success. Schnaars emphasized the importance of allowing any horror fan to become an investor, not just high-net-worth individuals.
Investors at various levels receive perks such as exclusive film screenings and the chance to appear as extras in films. The company aims to produce original films and acquire and distribute works from other filmmakers, focusing on niche horror genres. The decision to release films without Motion Picture Association ratings allows for unfiltered content, though it may limit theatrical distribution.
Blockchain Integration and Future Plans
The Horror Section has chosen Sui as its blockchain partner to facilitate fan ownership of digital shares as tokenized real-world assets. This integration allows Republic to manage equity and returns, opening participation to a global audience. Sui’s technologies, such as zkLogin and sponsored transactions, simplify the process for fans, eliminating the need for technical knowledge of Web3.
As part of its strategy, The Horror Section is incorporating Walrus’ decentralized storage and Seal’s secrets management technology to provide secure access to exclusive content. The company’s first release, ‘Jimmy and Stiggs,’ is scheduled for August 15, followed by its original film ‘Ice Cream Man,’ written and directed by Roth.
The studio plans to expand beyond films, developing a library of intellectual property that includes live-stage adaptations, fan experiences, and more. Schnaars highlighted the goal of creating a studio that serves horror fans while embracing future technologies. The initiative is set to impact how projects are funded and how fans engage with the entertainment industry.
For more information, visit The Horror Section’s announcement.
Why This Matters: Impact, Industry Trends & Expert Insights
The Horror Section is transforming the horror film industry by integrating blockchain technology to allow fans to become active stakeholders, offering them a share in the company’s success and profits.
Recent industry reports indicate that blockchain technology is significantly impacting the film industry through decentralized funding mechanisms and enhanced royalty payments via smart contracts. This aligns with The Horror Section’s approach to using blockchain for fan investment and profit-sharing, enhancing transparency and engagement.
As per insights from industry experts, blockchain is transforming film investment by introducing transparency and democratization to film financing. This supports The Horror Section’s innovative model of allowing fans to invest in films, thereby democratizing the film financing process and broadening investment opportunities.
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Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the official policy of CoinsHolder. Content, including that generated with the help of AI, is for informational purposes only and is not intended as legal, financial, or professional advice. Readers should do their research before taking any actions related to the company and carry full responsibility for their decisions.
