crowdfundingfilm

7/29/2019 CrowdfundingFIlm

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Miguel Afonso Caetano and Gustavo [email protected] / [email protected]

Instituto Universitário de Lisboa (ISCTE-IUL), Centro de Investigaçãoe Estudos de Sociologia (CIES-IUL), Lisboa, Portugal

mailto:[email protected]

mailto:[email protected]



Crowdfunding



"...the process of one party financing a project byrequesting and receiving small contributions from manyparties in exchange for a form of value to those parties"

(Rubinton 2011).

“...involves an open call, mostly through the Internet, for

the provision of financial resources either in form of donation or in exchange for some form of reward and/or voting rights" (Belleflamme et al. 2011, p. 7).



First used in 2006 to describe the business modelbehind the Dutch start-up Sellaband where people

contribute with small amounts of money to musicartists and bands to help them record an album.



In June 2006, Jeff Howe wrote an articlefor Wired magazine called “The Rise of Crowdsourcing” where he introduced the

neologism as being a more democraticversion of outsourcing.

The article would eventually originate abook published in 2008, Crowdsourcing:

Why The Power of The Crowd is Driving The Future of Business .



Artistic patronage, sponsorship;

In the expectation of receivingnon-monetary rewards (CDs,

DVDs, and books), pre-ordering of products and voting rights;

Financial return is a secondaryconcern.

Main motivation: the "ideology or the desire to support a particular project out of pure conviction" (Metzler 2011).



Collective financing, notinvestment or lending forprofit maximization.

Microlending sites like Kiva.organd Prosper fit better withinthe finance sector because theycharge lenders interest rates.

Project creators offer unique

products and experiences.



PPL.com.pt MassiveMov.comRedeBiz.net



Launched on April 28, 2009.

Only US residents are allowed to create a project. However,this restriction doesn't apply when it comes to making pledgesto projects.

$75,262,447 million in“pledges”; $60 million collected by

successful projects, $9 million not collected by unsuccessfulprojects. Collection rate: 80%.

5% commission on successful projects.



Dollars Pledged by Month (April2009 - March 2011)

Number of days it took for $5million to be pledged



26,620 projectssubmitted

10,338 successful

13,113 unsuccessful

3,119 still live

Successful rate: 44%



793,362 “backers”

118,308 (18%) repeatbackers

$20 million (28%) of the

dollars pledged camefrom repeat backers.



Of all the 13 categories available, “Music” is the most popular. “Film & Video” comesclose



Funding totals by category (April 28, 2009 - April 27, 2011)



1) Film: $19,717,790

2) Music: $13,094,547

3) Design: $3,601,851

4) Art: $3,184,732

5) Publishing: $2,732,501

6) Theater: $2,570,503

7) Technology: $1,748,109

8) Photography: $1,679,361

9) Food: $1,583,06310) Games: $1,052,557

11) Comics: $943,118

12) Dance: $645,492

13) Fashion: $554,048

Funding totalsby category

(April 2011)



1) Design: $16,446.81

2) Technology: $12,224.54

3) Film & Video: $6,469.09

4) Food: $6,435.22

5) Games: $5,847.54

6) Fashion: $4,655.87

7) Photography: $4,396.23

8) Comics: $4,386.59

9) Music: $4,210.4710) Writing & Publishing: $4,078.36

11) Art: $3,259.71

12) Theater: $3,009.96

13) Dance: $2,782.29

Average amount

collected by asuccessful projectaccording to eachcategory:

(total amount collected by eachcategory as of April 2011 / number of projects as of July2011):



1 SAVE Blue Like Jazz! Documentary $345,992 276% 4495

2 Rise and Shine: The Jay DeMerit Story Documentary $223,422 103% 19373 Minecraft: The Story of Mojang Documentary $210,297 140% 3631

4 Neil Gaiman's The Price Animation $161,774 107% 2001

5 My Reincarnation Documentary $150,456 300% 518

6 Man-child Narrative Film $125,100 108% 2336

7 More Business of Being Born Documentary $121,679 121% 1514

8 Urbanized: A Documentary Film Documentary $118,505 139% 1814

9 ThanksKilling – Killer Turkey Movie Sequel! Narrative Film $112,248 112% 466

10 I Am I Narrative Film $111,965 111% 90211 Stripped: The Comics Documentary Documentary $109,025 187% 2601

12 Least I Could Do: The Pilot Animation $105,141 140% 1228

13 Finding Vivian Maier Documentary $105,042 525% 1495

14 Wrestling Revolution Narrative Film $100,480 100% 187

15 All Things Must Pass: The Rise and Fall of Tower Records Documentary $92,025 184% 1686

16 On The Ice Narrative Film $85,690 107% 840

17 Mosquta y Mari Narrative Film $82,468 103% 888

18 Terry Pratchett's Troll Bridge Short Film $82,000 182% 1239

Top 20 most funded Film & Video projects



Kickstarter's Top 20 mostfunded Film & Video

projects by genre:

2010 Top 20 films byadmissions in the European

Union (EAB 2011):

2010 Top 20 EuropeanUnion films by admissions

in the EU (EAB 2011):

1 4

6

N a r r a t iv e F i l m s

A n i m a t i o n s

1 6

31

N a r r a t iv e F i lm s

A n i m a t io n s

D o c u m e n t a r ie s

1 0

6

21 1

D o c u m e n t a r ie s

N a r r a t iv e F i l m s

A n i m a t i o n s

S h o r t F il m s

W e b s e r i e s



Launched at the Sundance Film Festival in 2008.

Anyone from anywhere in the world can create a fundingcampaign.

Launchers of unsuccessful projects can keep all themoney raised minus IndieGoGo's fee.

4% service fee on every dollar collected; 9% fee on

projects that failed to meet their goal. “Helped raise millions of dollars for over 40,000

campaigns, across 201 countries.”



Initially geared towards independent filmmakers, has nowbroadened its appeal to all kinds of creators, artists andentrepreneurs.

Three types of categories:

1) creative projects (“film” appears separated from a“video/web” category);

2) causes (“animals”, “politics”, “religion”, etc.);

3) entrepreneurial (“food”, “small business”, “sports” and“technology”). Absence of real significant data and muddled navigation interface

makes it very difficult to reach a conclusion about its impact onindependent filmmaking.



2009 docudrama on climate change directed by British film director FrannyArmstrong (McLibel ).

The first crowdfunded film achieving worldwide theatrical releases. Premieredon 550 screens in 45 countries all over the world.

£450,000 were raised from 242 individuals and groups. Those who donated £20got the chance to see their name credited on the film's website whereas thosewho made investments of at least £5,000 were offered a share in case of profits(Grant 2010, Dell 2008).

Crowdfunding allowed the director to retain her distribution rights: no oneexcept herself got to decide where the film was screened.

Plot: an archivist living in the year 2055 looks back to our present age andbecomes aware of the way apathy towards the gathering effects of climatechange led to a world plagued by natural catastrophes.



Sci-fi feature film produced by Riot Cinema Collective, a groupof three young Spanish audiovisual professionals based inMadrid.

As of November 2010, had already attracted 2367 “co-producers” who contributed between 2€ and a maximum of 1,000€ (Alcalá 2010). The rewards sprang from the right to see

its name on the film credits to a signed DVD of the movie or adiner with the director.

Crowdfunding only a small part of the film budget: 5%.



Funders who donate 1000€ or more become investors and receive apercentage from all the profits. The film has at least attracted 70investors (Alcalá 2010).

Donors and investors have contributed with 85,406€.

The full movie on HD and all raw footage with a Creative CommonsShare-Alike license, mostly for non-commercial uses.

The user can freely watch the film online, distribute links to it over socialnetworks, upload it or download it from file sharing sites and networks,create derivate works like remixes and share them online – but only onthe condition that these derivative works carry the same license of the

original.



determine if crowdfunding can be seen as theengine behind a new and sustainable ecosystem for thefinancing of films.

demonstrate that constant demands for therepression of non-commercial file-sharing made byincumbent cultural industries are counterproductive.

l



Conclusion

Crowdfunding enables the fan communities of films and TV shows that HenryJenkins (2006) sees as hallmarks of a participatory culture to evolve to a deeperstage of participation.

Crowdfunding is opening the door to a new kind of filmmaking. Kickstarter and

other collective financing platforms are enabling documentary filmmakers tomake their projects come true without necessarily having to depend on anyoneelse besides the spectators.

These films meet what was until now an hidden demand of the spectatorship whichthe commercial circuit based on the box office and DVD renting and sales wasunable to satisfy precisely because of the high costs of entry associated with thefilm industry.



The Culture of Remix

2nd International Graduate Conferencein Communication and Culture

Universidade Católica Portuguesa

Lisbon, 13-14 October, 2011

Miguel Afonso Caetano & GustavoCardoso

CC-BY-SA 3.0



(Creative Commons licensed)

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