Kickstarter: New Site for Crowd-Funding Projects

We've been following various sites for a while that aim to help film and video folks raise money for their projects. One of the newest entrants is Kickstarter, which seems to be open to any sort of film/video/music/art project.

They're featured in the New York Times today. From the piece:

Earl Scioneaux III is not a famous music producer like Quincy Jones. He is a simple audio engineer in New Orleans who mixes live albums of local jazz musicians by day and creates electronic music by night. He had long wanted to pursue his dream of making his own album that married jazz and electronica, but he had no easy way to raise the $4,000 he needed for production.

Then he heard about Kickstarter, a start-up based in Brooklyn that uses the Web to match aspiring da Vincis and Spielbergs with mini-Medicis who are willing to chip in a few dollars toward their projects. Unlike similar sites that simply solicit donations, patrons on Kickstarter get an insider’s access to the projects they finance, and in most cases, some tangible memento of their contribution. The artists and inventors, meanwhile, are able to gauge in real time the commercial appeal of their ideas before they invest a lot of effort — and cash.

...Mr. Scioneaux, who ultimately raised $4,100, offered a range of rewards to his supporters: for a $15 payment, patrons received an advance copy of the album; for $30, they got a personal music lesson as well. A payment of $50 or more got both of those, and a seat at Mr. Scioneaux’s dinner table for a bowl of his homemade gumbo and a chance to listen to some of his studio recordings. “I didn’t expect people to be all over that one,” he said, “but it sold out almost immediately.”

There's also more in a blog post on the Times' Web site.

Unfortunately, right now you have to be based in the US to use Kickstarter, and you have to get an invitation from some unknown source. Clearly, they don't want the site flooded with more projects that their donors can support... which seems smart. (They also aren't taking a percentage out of the money that gets donated just yet.)

Keynote at LA Film Fest's Financing Conference: Endgame Entertainment CEO & Director James Stern

The LA Film Festival's Financing Conference started this morning with a great keynote from James Stern, CEO of Endgame Entertainment, and director of the recent doc 'Every Little Step.' IndieWire has the full text of his address, but here are four big ideas that stuck with me -- along with a ten-minute audio clip where Stern talks about niche marketing, 'the App Store effect,' handheld devices, and turning your film into an impulse buy.

1. In a world where millions of people will be accustomed to making instant impulse purchases of movies (through rental or download services on laptops, TVs, and mobile phones), the economics of making indie films could improve. Pricing will be key. People may pay $50 to watch a big-budget, well-marketed movie the weekend it is released in HD, in the comfort of their home. But $3 or $5 may be the right price if you're trying to get someone to sample something new, edgy, challenging, or independent.

2. Finding the target groups that can help start a groundswell around your movie is important. Stern mentioned a few films that have done this well: his theater doc 'Every Little Step' (16 million people have seen 'A Chorus Line' on Broadway), Coraline (they targeted knitting and sewing enthusiasts, because of the film's handmade look), and 'Wild Parrots of Telegraph Hill' (bird lovers.)

3. Telling a surprising, remarkable story is much more important than production values. Outside of LA, who talks about an amazing dolly shot as they're leaving the theater? Regular people talk about characters and performances and plot.

4. Short form content is an area of great opportunity. Think about stories that can be consumed episodically, in small bites, and also potentially assembled into a longer 60-minute or 90-minute package. Stern said he expects to see more hit web series spawning movies and TV shows.

The audio:

Here's the MP3 file, or just click play below.

The Second Most Important Question a Filmmaker Can Ask

I had some great conversations with documentary filmmakers earlier this week at SilverDocs, and look forward to more stimulating debate at the LA Film Fest's Financing Conference tomorrow.

At SilverDocs, I suggested that there are two important questions filmmakers need to ask during the process of making a film. Filmmakers already ask the first one, constantly: will you give me money to help make my movie?

But the second one -- just as important -- isn't one that most filmmakers know about, or ask often enough.

Here it is: what groups, online communities, blogs, Web sites, or non-profits do you think would be interested in this film?

I think you should ask that of everyone you meet: your cinematographer ... your investors ... your screenwriter ... your prop master ... everyone you interview for a documentary. And keep a list of their answers.

You will discover that there are magazines, blogs, fan communities, and organizations with millions of members that you should build relationships with. Let them know what you are working on. Get them (and their audiences) involved in some way -- as you are making the movie. Give them sneak peeks as you are in post-production. Give them a trailer or early cut to show at their annual convention. Enlist their help in spreading the word once you're on the festival circuit or in theatrical release. Do ticket and DVD give-aways to get their communities buzzing.

You ought to be asking this second question throughout the process of making your movie because that will help you discover who the most powerful taste-makers are, online and off. People you encounter who know these bloggers and publishers and non-profit presidents will make introductions to them for you. That's something that no amount of Googling during the post-production phase can do, unfortunately.

What's the benefit of all this? Rather than building a great Web site and then trying desperately to get people to come to it, you'll have created powerful connections to people who already have an audience, and can tell that audience about your project.

There would be no movie if you weren't good at asking question #1: will you give me money?

And there won't be much of an audience if you aren't good at asking question #2.

(Of course, these two vital questions pertain to the business of making and marketing movies. I acknowledge that when it comes to the art of cinema, there are lots of important questions, starting with, "What do I need to do to tell a great story?")

Monday Links: New Movie Review Aggregator, Mark Cuban @ D7, New Distribution Venture, and the Ransom Model of Fundraising

- The NY Times ran a story on Saturday about a new site aggregating movie reviews, started by David A. Gross, a former marketing exec at 20th Century Fox. It's called Movie Review Intelligence. I found it pretty useful...

- There are a bunch of great videos from the Wall Street Journal's D7 conference earlier this month, including interviews with NBC Universal CEO Jeff Zucker, the founders of Twitter, Microsoft CEO Steve Ballmer, News Corp. CEO Rupert Murdoch, and Mark Cuban. (There's also a video interview and several performances by Jill Sobule, one of the stars of Fans, Friends & Followers.) Definitely worth checking out...

- The Times writes today about a new distribution venture for movies with budgets up to $10 million, called DF Indie Studios. Behind the launch are Mary Dickinson and Charlene Fisher.

From the Times' piece:

Ms. Dickinson and Ms. Fisher — the D and the F in DF Studios — think independent productions are ripe for reinvention. “There is going to be a dearth of quality product in the marketplace because financing has dried up for so many people, and that means we can move into that open spot,” Ms. Dickinson said.

The two would not discuss the company’s financing and had no film projects to announce. They are still seeking investors.

“We are happily on the way with our financing, which will allow us to start making films in the fall,” said Ms. Fisher, whose background is in entertainment business development and restructuring. Ms. Dickinson’s experience includes reorganizing an extreme sports film company, Teton Gravity Research

- Ross Payton is a designer of role-playing games who also hosts the video podcast Raillery. He read Fans, Friend & Followers, and wrote in to share the story of his success in raising money via the "ransom" model. More about that here.

From Ted Hope: 38 Concerns for American Independent Film

Producer Ted Hope has collected a list of 38 things he's worrying about - issues we need to deal with in order for quality indie film to have a future. It's well worth a read ... and the comments are great, too.

It begins:

1. Too many leisure options for film to compete without further enhancing the theatrical and cinematic experience
2. Too many "specialized" films opening to allow such films to gain word of mouth and audience's attention.
3. Too many films available and being distributed to allow films to stay in one theater for very long, making it more difficult to develop a word of mouth audience.
4. Lack of access -- outside of NYC & LA --to films when they are at their highest media awareness (encourages bootlegging, limits appeal by reducing timeliness).
5. Distrib's abandonment (and lack of development) of community-building marketing approaches for specialized releases (which reduces appeal for a group activity i.e. the theatrical experience).
6. Distrib's failure to embrace limited streaming of features for audience building.
7. Reliance on large marketing spend release model restricts content to broad subjects (which decreases films' distinction in marketplace) and reduces ability to focus on pre-aggregated niche audiences.

(One of Hope's latest projects is 'Adventureland,' a really enjoyable trip back to the 1980s.)

From Cannes...

A few quick links related to Cannes coverage: David Poland and Jeffrey Wells have some details on a panel that discussed how the Internet is changing film journalism. And Anthony Kaufman has some great stuff about how indie film financing is changing, also written from Cannes. That is all for now...

Film Funding Site IndieGoGo Hits $100K in Member Contributions

Slava Rubin of IndieGoGo e-mailed last week to let me know that the film funding site has collected $100,000 so far from its members to support the production of independent films.

I asked the obvious question: how many films have been made -- and released -- so far with IndieGoGo support?

Here's what he said via e-mail (I added links, and the $ raised):

'Tapestries of Hope' has gotten $22,500 but still [has yet] to finish - almost there.
'Gemini Rising' is a webisode series released and they got nominated for a Webby (about $1,800)
'The Lilliput' is in production ($10,000)
'Shelter in Place' is in final stages ($7,500)

Great article on fan-funding

The Boston Globe ran this great piece about how musicians are funding tours and albums with help from their fans. The headline is "Musicians and fans join together to get albums made."

Some solid ideas for film and video folks in here...and it's all very much in tune with the Fans, Friends & Followers approach. (They even include a few quotes from Jill Sobule, who is in the book.)

Wanted to share one great quote from a "benefactor" who supported folk musician Ellis Paul:

Karen Zundel, a librarian in Pennsylvania who's been a devoted Ellis Paul fan for 12 years, says she even saved up for her contribution because it held more importance than your typical splurge. "The arts are what sustain us and bring individuals and communities together and help us to connect with our innermost beings," Zundel says. "A new car won't do that. When you buy a new car or a new outfit, you get that little thrill that lasts very temporarily, and then it's gone. But I think art really sustains me. It lasts."

Audio: Talking About the Future of Indie Film, at SXSW

Eight folks who were in Austin this week for the SXSW Film Festival sat down yesterday morning to have breakfast and talk about the one big idea or big challenge or big shift that we've been thinking about most these days. We recorded the conversation so you could listen in, but be forewarned that there's a lot of background noise; the restaurant was noisier than is ideal for audio recording. (It gets better as the recording goes on, as the restaurant empties out.) The order in which people speak in the recording is: producer Ted Hope, filmmaker Lance Weiler, conference organizer and producer Liz Rosenthal, technologist Brian Chirls, outreach guru Caitlin Boyle, filmmaker Brett Gaylor, producer and Filmmaker Mag editor Scott Macaulay, and me (Scott Kirsner.)

Some of the things we talked about:

- film financing
- transmedia experiences
- Creative Commons Plus licensing (ways to profit from people sharing and redistributing work licensed under Creative Commons)
- the need for more experimentation and information-sharing among filmmakers
- business models around piracy and file sharing (in particular what Jamie King has been doing with VODO)
- the desire for participation (IE, the audience is no longer just interested in passive consumption)
- the possibility of some kind of "Oprah's Book Club" movement that would involve groups of people watching and discussing films, rather than books
- the rise of YouTube, and whether filmmakers should be paying more attention to what audiences are doing (IE, watching short YouTube videos with groups of friends or colleagues), rather than insisting that the 90-minute film is the only "respectable" product to be making today

And much, much more.

I started the conversation by asking everyone to talk about one big idea or challenge that they'd been thinking about lately.

Here's the MP3, or you can listen by clicking 'Play' below.

Big vs. Small: Who's Better Positioned Right Now?

A lot of times when I've written about some interesting little Internet experiment that has generated $50,000 or $100,000 for the creative person behind it, someone will e-mail me to ask, "Yeah, OK, but how does that support the media industry? A movie studio can't pay its security guards for a week on that kind of money."

Good point.

I'm very confident about digital media's ability to support individual creators, doing the kind of work they want to do, often on tightly-constrained budgets. (Constraints = inventiveness, right?)

I'm less confident that it will support the same gargantuan, diversified companies that raked in the big bucks in the days when there were only four TV networks, six movies released every weekend, a dozen important records issued on Tuesday.

This David Carr column from today's NY Times is worth a read, because it highlights this issue: the wind is right now at the little guy's back. The piece focuses on the music industry, but it could very well be about movies or book publishing, or any other media endeavor.

One example it cites of an individual artist figuring out a way to get by in this new environment is Jill Sobule. I've been a fan of hers since the mid-1990s, and I had a chance to interview her for my forthcoming book.

Here's an excerpt from the Times story:

After listening to her fans, she came up with an updated version of the Medici model. To raise the $75,000 she needed for an album, she set up a Web site — jillsnextrecord.com — in which her fans would serve as patrons for her next record in return for various rewards.

Ten bucks earned them a digital download of the record, $50 an advance copy and a thank you in the liner notes, while $1,000 got them a personalized theme song written by the artist. Three people who paid $5,000 had Ms. Sobule play at their house. The person who gave $10,000 sang on the record.

If it sounds cheesy, like a virtual Tupperware party, consider that the record was produced by Don Was, who has produced Bob Dylan and the Rolling Stones. The sessions, recorded in Hollywood at Henson Recording Studios, were available for streaming and comment on Ms. Sobule’s Web site before she chose the final songs. (One listener’s verdict? More cowbell, please.)

IndieVest: Pay Us Thousands for the Privilege of Investing in Indie Films

Got a press e-mail today from IndieVest, yet another company trying to reinvent the way the indie films are financed.

They were profiled in Fast Company recently. From that piece:

IndieVest's plan has three tiers, beginning with a $20 "guest membership" that lets potential investors review only the current project. The premier portfolio membership -- $2,950 up front and $1,950 annually -- lets investors consider the company's future films, and includes invites to special film screenings. The all-access studio plan -- $4,950 up front and $2,950 annually -- adds opportunities to attend exclusive film festivals and the Independent Spirit Awards.

Members can enjoy these goodies even without investing in individual films, although most choose to buy shares (starting at $50,000) in at least one of the dozen projects Bradley and his production chief Mark Burton have lined up. To help investors decide whether to help fund a movie, they get a "prospectus": It contains a plot synopsis; info on the writer, director, and any attached actors; and an eight-page script sample.

According to VentureBeat, the company raised $2.5 million last year, and said that it planned to produce and distribute six films by the end of 2008.

So far, they haven't released any films. But their first film, 'Saint John of Las Vegas,' is characterized as in pre-production on IMDB. Monsters and Critics says that filming started in August. IndieVest says it is in post. The first-time director, Hue Rhodes, is best known as a co-founder of Bluelight.com, Kmart's e-commerce subsidiary.

Both the Fast Company piece and an October story from the Las Vegas Sun say that 'Saint John,' which stars Steve Buscemi, is "expected to be screened at the Sundance Film Festival."

That's sort of a weird promise for anyone to make... the kind of thing that only novice film investors would believe.

Well, unless Sundance is planning a last-minute announcement that 'Saint John' will be included in the 2009 festival, that ain't happening.

I'm all for new experiments in financing films... but something seems amiss here.

This is my favorite quote from the Fast Company piece, from IndieVest founder Wade Bradley:

Bradley reports that calls from curious advisers and independent investors are up fivefold in recent months. "People understand that entertainment is going to outcapitalize the rest of the market during a recession," he says. "They're looking at us as a safe haven."

Dude, a safe haven is a place where your money is guaranteed not to vanish, and perhaps even to increase. No film-related investment in history has ever been a safe haven.

Update: Wade Bradley called me today (12.17.08) to tell me more about his company's "managed risk" approach to movie-making. He said that the media had misunderstood his promise to screen at the Sundance Film Festival. What he meant was that they'd try to get in, or else screen it in a rented hotel ballroom. Turns out, though, that 'Saint John' didn't get submitted to the fest, and it isn't ready to screen. But they will show a trailer in a ballroom at the Hotel Park City. Film should be finished by February or March, he said. Bradley said there will also be a dinner and after-party for IndieVest members in Park City.

Also, he said their plan is currently to make two or three more films in 2009 or by early 2010. Those films are not yet in production, though.

Some more notes from DIY Day Boston

David Tamés posts some of his photos and notes from last weekend's DIY Day event in Boston. It includes coverage of the opening chat with digital media investor (and indie film producer) Todd Dagres...a presentation on virality called 'If It Doesn't Spread, It's Dead'...and a talk by Slava Rubin on crowd-funding of indie film.

Reading for an August Weekend: Financing, Distribution, Red Envelope, and More on 'Dr. Horrible'

A few links for the weekend...

- The Christian Science Monitor writes about how the Web is being used to finance and distribute indie films, with quotes from yours truly, filmmakers Minna Zielonka-Packer and Lance Weiler, and IndieGoGo co-founder Slava Rubin.

- I was a little slow to come across the news that Netflix has shut down its Red Envelope division, which produced and distributed movies. That's too bad.

From Variety's coverage:

One hurdle to continuing Red Envelope, execs said, was the notion of the company competing against the same studio suppliers it was negotiating with every day over DVDs and streamed content. The complications involved in acquiring, producing and distributing pics were an unnecessary headache for a company already battling a resurgent Blockbuster and the dizzying pace of technological change and consumer habit.

IndieGoGo has a bit more on their blog.

- Eric Kohn of Stream talked to the producer of 'Purple Violets,' the Ed Burns film released direct-to-iTunes last fall. While he doesn't share a lot of financial details, he does recommend that other filmmakers do similar experiments with distribution, and says the results were on the high end of their expectations.

- There's been a lot more written this week about Joss Whedon's 'Dr. Horrible' series, which I noticed is now available on Hulu.com, speckled with advertising. (That wasn't part of the original distribution plan, at least as it was announced.)

The New York Times, in a column called "The Web," compares it to what you'd find on TV:

On that scale “Dr. Horrible” falls somewhere between an amusing trifle and a dramedy that won’t make it to the 13th episode. Mr. Whedon has clearly thought about how to develop and add layers to a story (even a goofy tale about a nebbishy villain with a freeze ray) within the short-attention-span context of the Web. But as diverting as it is, “Dr. Horrible” still looks both slight and overheated compared with any middling-to-good television series, and the jokes, both verbal and visual, feel tossed off and scattershot.

I think that's an unfair comparison... online, 'Dr. Horrible' stood out as something funny and worth spending 45 minutes with...which is quite unusual for Internet content. If we assume, at the high end, that 'Dr. Horrible' cost $250,000, it was still much cheaper to make than an hour of TV programming. (The New York Times says an hour of reality programming averages $700,000, and scripted dramas $1 million to $2 million.) And as a piece of Internet content, it could take advantage of links and sharing and embedding in a way that no TV show ever could.

This post from Kendall Whitehouse makes the case that Joss Whedon would do other indie content producers a great favor if he shared the financial details of the 'Dr. Horrible' experiment: how much did it cost to produce (and promote), and what is he earning from digital distribution (and eventually, DVDs)? I completely agree.

Kendall's post also got me thinking about an issue I've been harping on for almost three years now: why was it easy for 'Dr. Horrible' to get a prominent spot on iTunes, when most indie producers can't get iTunes to carry their content?

Finally, I wrote a blog post for Harvard Business Online making the case that Hollywood studios ought to be conducting more original content experiments, similar to 'Dr. Horrible,' with small-ish budgets.

Mark Gill on the Future of Indie Film

Anne Thompson of Variety posts the text of a keynote address that Mark Gill of the Film Department (and formerly of Warner Independent and Miramax) gave over the weekend at the LA Film Festival. It's worth a read.

I disagree with Gill when he says that studios need to focus on making fewer movies... but he's right that lower prices for digitally-delivered movies will help goose consumption. In his talk, he touches on the way that prices for DVDs dropped relative to VHS tapes, and that the same will likely happen again for movies in digital form:

When the movie business went from tape to digital, we dropped the wholesale price per unit from $65 to $10. And everyone said: “Oh my god, they’re killing the business. Our profit margins are ruined.” Well, the margin was smaller, but sales exploded. The studios made tens of billions of dollars on the difference. And consumers mostly like what they’re getting. So much so that movies are the second-highest rated consumer value for the money. Behind only chicken. Not so for albums, which are so far down the list you can’t find them.

The next big change will be when we start shooting movies to mobile devices in a big way. The wholesale price will drop again—probably to $3 per unit. But we’ll sell so many more of them that revenue will explode all over again. This has very favorable implications for getting past piracy problems that helped kill the music business: the charge for downloading a film will land on your phone bill. And the moviemakers can hold the phone companies accountable (whereas now internet providers duck and hide when we try to pursue them for what amounts to transfer of stolen goods).

Yet More on Internet Film Financing: IndieGoGo Video and MyMovieStudio

Last Friday at the Making Media Now conference in Boston, I ran into Slava Rubin of IndieGoGo, and we sat down for a quick chat about how things are going with the site, which aims to help filmmakers raise money for their projects. (I've previously compared several of the sites trying to do this.)



(Aside: In much of the video, my nose looks like it is auditioning for the part of "The Nose" in a remake of Woody Allen's 'Sleeper.')

Before we shot the video, I mentioned to Slava that earlier in the week, I'd received yet another e-mail from yet another new site trying to help raise money online for films. This one, My Movie Studio, is co-founded by Glasgow Phillips, who has written a few episodes of 'South Park.' Users can post their ideas for movies (not scripts), and then vote on which ones they'd like to see produced. Co-founder Michael Bertin explains:

When we get a critical mass, we plan to form an investment vehicle and issue $100 shares for sale to members. We hope to raise $6 million (60,000 shares at $100 each) to finance the three most popular ideas as voted by the community—the three winning Movie Pitch authors will receive $25,000 and sole "Story By" credit on the movies based on their ideas.

Who's going to write the scripts? Bertin explains: "...[W]e're going to hire professional, credited film and TV writers to turn the ideas into scripts. We've got a really good network of writers so we're pretty confident in our abilities to get through any creative challenges from a scripting standpoint.

If the movies do well, investors will presumably be able to earn a positive return on their $100 shares. But dealing with securities regulations will be a challenge .... which is why IndieGoGo considers all the money its filmmakers raise to be "contributions" or "donations," rather than investments.

IndieShares Launches, Running a Competition for Screenplays and Trying to Fund the Winner

The Seattle start-up IndieShares is taking a slightly different approach to online fundraising, which I posted about recently. They're asking site visitors to vote on which idea they like best for a movie (based on a short video pitch delivered by an actor or actress -- not the screenwriter). Then, according to an e-mail I received from IndieShares president Jay Schwartz, the general public will have the chance to invest (not donate) money to its production costs, in increments as small as $10.

I asked Schwartz a few questions via e-mail. The first was about who'd actually be making the film of the winning screenplay.

He wrote back: "We have contracted with an existing producer for our first film that is well known and has an impressive track record. Furthermore, since IndieShares will be responsible for putting the investors' money to its best use, we will only deal with those parties and companies that are bondable."

Can't you disclose who this mystery producer is?

Schwartz said it will be Eugene Mazzola, who started an equipment rental firm called The Cine Companies, and now runs Bridge Productions. (Mazzola's IMDB page also includes a credit in 'The Ten Commandments' as Ramses' son.) Mazzola is on IndieShares' advisory board, and he was also a first AD on the hit metaphysical documentary 'What the Bleep Do We Know?'

Schwartz wrote, "The Production Services Agreement obligates Bridge to engage (meaning subcontract) with only bondable talent, including the director and DP. IndieShares is also going to sign two more production companies to our master production services agreement within the next two months, which will enable to us to produce films simultaneously under investor-favorable terms and conditions."

Finally, I asked about budget. "Our initial budget range is $5MM and below, but after the first film we anticipate that budget limitation being removed," Schwartz wrote.

Internet Film Financing: Evaluating the Options

Let’s have a look at the three sites that aim to help filmmakers raise money for their projects online, all of which are at a pretty early stage of development.

My only criteria was that they’re open to any filmmaker (I didn’t include sites that are raising money for one specific project, like ASwarmofAngels.com). I’m not endorsing any of these companies, just reporting on what they’re up to. If any of you CinemaTech readers have comments, or experiences with any of the companies, please post below.

1. IndieGoGo

In its first few months of operation, IndieGoGo has helped two films raise $10,000 each; in neither case was the $10,000 the film’s complete budget, but rather a “first round” of funding. Financial contributors may be rewarded with invites to wrap parties, DVD copies of the film, film credits, or signed memorabilia. Creating a project profile for a film is free, but once the financial goal is reached, IndieGoGo takes a nine percent cut. Filmmakers can post any material they like – some, like a budget or script, may be password-protected in a private area for certain potential contributors. Non-profit enterprises can use IndieGoGo to solicit tax-deductible donations, too.

- Here’s an earlier CinemaTech post about IndieGogo. They were also mentioned in this Variety story I wrote in 2007, when they were still called Project Keiyaku.

2. ArtistShare

Used so far mostly by musicians, ArtistShare is allowing at least one filmmaker, Paul Devlin, to raise money on the site for his “science-adventure” doc ‘Blast.’ Donors can pre-purchase the DVD ($49.99) or, for $150,000 go out to dinner with the filmmaker and star of the movie, get a personal lecture from the star, and be listed as an Executive Producer. ArtistShare charges a set-up fee for all accounts, plus a monthly fee, in order to be able to raise funds through the site. Unclear how open they are to helping other film/video projects raise money. Rick Moranis has used ArtistShare, as have jazz guitarist Jim Hall, Phish co-founder Trey Anastasio, and Maria Schneider, who won a Grammy this year for “Best Instrumental Composition.”

- Here’s an earlier CinemaTech post about ‘Blast’ and ArtistShare.

3. IndieMaverick

IndieMaverick, based in the UK, is the only one of the three sites that hopes to offer investors in a film a positive financial return if the film does well. Filmmakers can raise as much as $1.5 million for a project, but if the budget is over $50,000, they need to meet with IndieMaverick employee in person “to ensure the filmmakers are not fraudulent and to assess if they can make the film for the budget they have requested,” according to the site. Filmmakers are responsible for their own distribution deals when they’re done, and they agree to split any profits with IndieMaverick investors, 30/70. (Filmmaker keeps 30 percent.) All investors also receive “limited-edition DVDs.” How does IndieMaverick make money? Through advertising on the Web site, interest on the funds invested, and uploading costs, they say. IndieMaverick also reserves the right to sell the completed film as an Internet download after the theatrical or DVD release has taken place. One feature, ‘Run With Me,’ has raised $232,000 on the site, and another, ‘Putnam County Law,’ has raised $32,000. But filmmakers are allowed to include previously-committed funds in their total.

- Here’s an earlier CinemaTech post about IndieMaverick

Two other sites are worth a look, for smaller projects: HaveMoneyWillVlog (geared to video bloggers trying to raise $2000 to $3000 for a special project….but site is currently on hiatus) and Fundable.

Update: FilmRiot, based in Canada, and IndieShares, in Seattle, are also trying to get some momentum with online film financing.

For Your Consideration: Low-Budget Blockbusters ... Toshiba Exec Reflects on HD DVD ... Theaters Evolve

- Low-budget blockbusters like 'Once' never happen ... until they do. (Movie industry insiders say it's always safer to bet on big budget releases with well-known stars.) Portfolio.com has an analysis of the economics of 'Once,' made for $150,000 and released in the US by Fox Searchlight. The financial returns thus far, Portfolio says, have hit about 10,000 percent. From the story:

After the film opened in the U.S., it grew slowly and steadily. Fox Searchlight had the best marketing that money can’t buy: word-of-mouth buzz and critical acclaim. While summer’s blockbusters came and went, Once stuck around theaters for an amazing 219 days—most of 2007—whereas Spider-Man and Pirates played for 112 and 133 days, respectively.

There's also a slideshow of the top ten movies from a return-on-investment perspective (mostly indies like 'Blair Witch' and 'Napoleon Dynamite,' but all three 'Lord of the Rings' films also make the list.)

- Toshiba's CEO talks to the Wall Street Journal about the impact to the company of losing the high-def format war to Sony and Blu-ray. Atsutoshi Nishida says:

I didn't think we stood a chance after Warner left us because it meant HD DVD would have just 20% to 30% of software market share. One has to take calculated risks in business, but it's also important to switch gears immediately if you think your decision was wrong. We were doing this to win, and if we weren't going to win then we had to pull out, especially since consumers were already asking for a single standard.

- The Detroit News writes about how movie theaters are evolving -- with a big focus on 3-D, live concerts, and videogame tournaments. (Long interviewed me for the piece, and includes a short quote.)Fox

Science Doc is First to Use ArtistShare for Fund-Raising

The producers of the science documentary 'BLAST,' about the launch of a high-altitude telescope, claim that they're the first ones using ArtistShare to raise money for a film.

ArtistShare is an Internet financing site, originally for musicians. Fans can either pre-buy a download or a CD, or donate larger amounts -- which might earn them a producer's credit, tickets to live shows, original hand-written sheet music, etc.

'BLAST' is being featured on the homepage of ArtistShare; donate $150,000 to the project and you'll get a hand-written thank you letter from director Paul Devlin, tickets to a private screening at the SoHo House in Manhattan, and much, much more.

IndieGoGo: A Social Network for Filmmakers Raising Money (and Their Backers)

Almost a year ago, I wrote about IndieGoGo in Variety, as part of a new wave of efforts to use the Internet for film financing. (Back then, the site was still mostly a concept, and it was called Project Keiyaku.)

Now, the site has officially launched.

I do want to see someone succeed, and create a networking hub where filmmakers can raise money. But I think filmmakers and financiers are right to be skeptical... you can see some of the debate about the model on this earlier post about IndieMaverick, a UK-based financing site. (One thing that would make me more comfortable with IndieGoGo would be an actual address, and names listed on the site of who is behind it. I know the principals, and that they're based in Berkeley, Calif., but I'm not a filmmaker or financier coming to the site for the first time...) What will it take for someone to succeed? A well-known filmmaker successfully using one of the sites to raise money for a project.

From IndieGoGo's official press release:

“DIY has been long the mantra of independent filmmaking and financing. At IndieGoGo, we push that to the next level with DIWO, “Do It With Others” which more accurately reflects the active communal process required to launch film projects”, said Slava Rubin, IndieGoGo Founder and Chief of Strategy and Marketing. “Using the tools IndieGoGo offers, we aim to empower artists to realize their goals and bring more relevant films to the people. Online fundraising is accelerating, the cost of production is falling, social networking is approaching mainstream, and user-controlled media is the future. As these trends accelerate, IndieGoGo offers a new marketplace to turn ideas into film, and fans into insiders.”

...In its pre-launch phase, IndieGoGo sought developmental feedback from a wide range of filmmakers and industry leaders. FLOW: FOR LOVE OF WATER, directed by Irena Salina and produced by Steven Starr, was selected by IndieGoGo to be its first Showcase project and was subsequently selected to World Premiere in competition at the 2008 Sundance Film Festival. Other noted filmmakers planning to include projects on the site include Christopher Roberts (THE BELIEVER), Lance Weiler (THE LAST BROADCAST, HEAD TRAUMA), Michael Roiff (WAITRESS, AMERICAN SON), M dot Strange (WE ARE THE STRANGE), Michealene Cristini Risley (TAPESTRIES OF HOPE), Brett Gaylor (BASEMENT TAPES), Beth Murphy (BEYOND BELIEF), and Yung Chang (UP THE YANGTZE) which is also featured in the 2008 Sundance Film Festival.

...Slava Rubin will represent IndieGoGo on the GOING IT ALONE: DIGITAL DISTRIBUTION FOR INDIE FILMMAKERS panel at the Sundance Film Festival on Wednesday, January 23, 12:30 pm at the New Frontier on Main Microcinema.