I think that this will be the future of financing all easily-copied creative works. Start production after you have enough sales, and you don’t have to worry about copyright violations.
Obviously, it’s starting small, but once the model is proven (and it’s proving itself quite quickly), and well-known there’s no reason you can’t finance a $100 million movie in the same way.
There are some downsides, but most of them are much more easily handled than the current problem of trying to sell copies of something that can be easily and cheaply copied. If you sell the copies before the original is produced, that problem mostly goes away.
Movies are usually a bad investment.
There are many creative ways to make a movie appear to have never made a profit, even if it grosses a billion dollars - so unless an investor has some special deal (upfront profits, etc.) chances of an investor ever seeing a return on the investment is about nil.
That said, I suppose this is like an online petition to have your favorite film/TV show made, except you are putting your money where your mouth is. Plus, a small investment ($50 or so) for a special edition T-Shirt and copy of the script is about what you would pay at some stupid rock concert for a T-Shirt and CD…so if that makes you happy, go for it.
I would personally be more inclined to invest in anything else…but if someone is a huge fan of some film/TV show or wants to see their favorite book made into a film - it is their money and their risk. I just wouldn’t go shopping for that Beverly Hills mansion from your profits just yet…
Note that Kickstarter campaigns are not investments. You get no share of the company and no returns or profits. What you sign up for is what you get: a movie ticket, a poster, a script, a screening. That’s what you’re buying.
No disrespect to Zach Braff, who is a very funny man and reasonably successful actor but…“A-list celebrity”? I’m not exactly seeing him as first in line for “Oceans 14” or anything like that.
Has anyone mentioned that investing for profit participation is not offered because it is not allowed? They have to offer the DVD, t-shirt, lunch with Devo, or whatever. They can’t offer shares.
A lot of these are almost like a pre-order that enables the producer to create the product based on pledge interest rather than wild guess. I think it could work a lot better for certain projects- say albums by established indie bands but maybe not major movies or Sammy Hagar’s son’S vanity project. But a lot of people aren’t doing them the right way. Dont offer a signed CD for 50 bucks- that should be closer to 5 bucks. Maybe 15 if you throw in something else. I’ve seen musicians that had no problem generating a million bucks from highly regarded material fail to Kickstart 10 grand for anticipated follow up material. I think that comes from wildly overestimating the value and cost of the product and fans willingness to subsidize it. No one believes you need 50 grand to record on a Mac in your roommates closet and drop the files off with the guy you found on twitter who mixes and masters for 500 bucks. No one thinks its worth a grand plus transportation to attend your release party at the bar.