Crowd source funding for TV & Movies: Is this the future?

[RickJ]

I came across http://vodo.net/, a website that hosts Creative Commos or similarly licensed films many of which are crowd funded al la Kickstarter.  There are other independently produced films around such as Drawn By Pain, Stranger Things, Star Trek: Phase II and I'm sure there are many others.  Star Trek Phase II actually have the blessing of Parmount, the copyright holder.  Walter Koenig and George Takkei have appeared in two of the films one of which was written by D.C. Fontana.  Grace Lee Whitney (Yeoman Janice) and Majel Barrett Rodenberry have also made appearances. (sorry, I'm a Trek fan)

Anyway, it seems like there is going to be more and more of this as time goes by.  Will this sort of stuff replace all or a substantial part of the traditional industry?  Is this the future?

[Darth Mandarb]

Personally I love the concept.  I worry about it becoming over-crowded though.

I'm currently working freelance for a company and am trying to convince them to do a kickstarter campaign to fund us (trying desperately to convince them to NOT get investors as we would lose too much control that way).  With crowdsource funds you get what you need and aren't "beholden" to any investor(s).  We are taking the approach of "we want to put the power in your hands" (meaning our users).  You still have to deliver, of course, but don't have a greedy investor breathing down your neck!

I think it's too early to say for sure whether this is the future but I really do like the concept and hope it solidifies as a viable way to fund projects!  I have TONS of ideas I'd like to work on, but lack the financial freedom to do so.  This method of getting funding will/could work perfectly for that!

[Calin Leafshade]

I worry about companies essentially shifting the risk onto the consumers.

When you have an idea, you get a loan and take a risk. The larger the risk, the greater the reward. Thus is capitalism.

If you do a kickstarter and get your customers to fund a project then the dynamics of your incentives are shifted from a genuine investor to the customer. Also, where are the legal safeguards? Why not just take the money? or spend it on something else? There's no accountability here.

[Ali]

Even though I crowdfunded the graduation film I'm working on, I'm also wary of the lack of legal accountability. I think we're all just waiting for the great crowdfunding scandal of 201X. (Which won't be my film...)

However, with a lack of public money available for the arts, and a crippling lack of investment in small businesses, I think it's becoming more necessary. Dangerous and exciting, but necessary.

[bicilotti]

I worry about companies essentially shifting the risk onto the consumers.

When you have an idea, you get a loan and take a risk. The larger the risk, the greater the reward. Thus is capitalism.

If you do a kickstarter and get your customers to fund a project then the dynamics of your incentives are shifted from a genuine investor to the customer. Also, where are the legal safeguards? Why not just take the money? or spend it on something else? There's no accountability here.

I agree with Calin, it seems (I stress the word 'seems') that someone is getting a free ride without putting much money in the middle (and providing little to no accountability). But I am no expert, can somebody tell us wheter that's true or false?

If I were Tim Schafer, I'd grab the loot and run away to some tropical island.

[Darth Mandarb]

Perhaps it is extremely naive of me but I like to believe (at least with kickstarter) that the people taking the time/effort to make a project (put together all the pieces, the video, the incentives, etc) they are doing it for something they are passionate about and actually WANT to develop.  So the accountability is on themselves!

Having said that it was, of course, one of my initial questions when I was researching kickstarter.  I was confused as to what would stop somebody from just takin' the money and runnin' off to the bahamas for a few weeks.

But, as with investing in anything, there is risk.  So if you back an idea on kickstarter and it never comes to fruition I feel it's the same risk you take with an old-school investment.

But I feel something like kickstarter is safer than a traditional investment.  I mean; if one person gives you 100,000 dollars they've put a lot on the line.  If 100,000 people each give you a dollar the "risk" is so distributed that it doesn't make/break the individual anymore.  To me, this is the strongest selling point of crowd-sourcing.

[Ali]

It's worth remembering the distinction between backing a kickstarter project and investing in a venture. Investors get returns if and when a venture makes money. In a sense there is no risk with kickstarter projects, because you are guaranteed to get nothing of significant monetary value.

If you want to offer financial returns for a crowdfunded project it becomes illegal very quickly. You need lawyers and approval from the FSA (in the UK). Spanner Films pioneered crowdfunding in the days before kickstarter and they have lots of helpful information here:

http://www.spannerfilms.net/crowd_funding

[m0ds]

It seems like a good method to me, I presume it also helps people keep creative control of their project, rather than investors shaping it to their vision. Sometimes they simply won't invest unless you make it in a certain way that meets their ideals. I also like the point that a dollar a person lowers the risk rather than one person paying 100,000. But I also agree Ali's film could well lead the scandal, with DoubleFine to follow. And then Screen 7.  

The way internet payments are and accountability issues and real legal issues - it's all a bit of a mess at these times, because public digital crowd funding is still a new concept. It's a good time for it right now, but I'm sure it'll get hit with legislation in the future. But hopefully not, because yeah the creative control aspect to me is what makes it exciting.

[Darth Mandarb]

It seems like a good method to me, I presume it also helps people keep creative control of their project, rather than investors shaping it to their vision.

This fact alone is what makes me a fan of crowd-sourcing.  I have been involved with many projects where investors always get in the way.  They want to make it their way and are always quick to drop the, "where'd you get the money to do this??" card.  Annoying.  Granted I've also worked with an investor that sat back and trusted the people they put their money on (but this is the rarity in my experience).

I have so many ideas that I've never done anything with 'cause I didn't have the money to start the project and simply will NOT give over creative control.  So, to me, crowd-sourcing is the answer.  If it's only a temporary bubble (that might burst in a few years) I want to get in on it now!!