At this year’s Academy Awards, Inocente became the first Kickstarter-funded film to win an Oscar (for best documentary short). Around 10% of the films accepted by the Sundance, Tribeca, and South by Southwest film festivals were funded using Kickstarter. And several weeks ago, a high profile Kickstarter campaign was launched to fund a movie version of UPN/The CW television series Veronica Mars. The goal of $2 million dollars was reached within the day, record breaking both in its quickness and the amount of money raised. As I write this, the total amount has surpassed $4 million. The attention on Kickstarter these days struck me as significant in the current production landscape, and I set out to write a post on new trends in production financing. Almost as quickly as the Veronica Mars Kickstarter campaign succeeded in its goal, my colleague Myles McNutt published a post that addressed what this campaign might mean for teaching fan cultures in the future and suggested that perhaps participating in a Kickstarter campaign might be more about being involved in the experience of a project’s creation, being a part of the journey, than the final product. While the topic of this specific Kickstarter campaign has been widely discussed, I’m curious how it relates to broader trends in production financing.

Although people who give money to projects on Kickstarter do so in order to create a final product, the idea that Kickstarter provides donors with access to the experience of the production process is an important aspect of donating. Looking at Veronica Mars as an example, the incentives for donating include email updates throughout the production process and a copy of the final shooting script. These engage donors with the process of filmmaking; indeed, part of Kickstarter’s appeal and success seems to come from the fact that people enjoy feeling like they’re part of the action. The campaign also just announced that it would offer email updates for the $1 tier donors (lowering the barrier for people to get involved) in an attempt to bring an even larger number of people into the project and break the record for number of backers. Financing a project through upfront, donated funds differs from traditional funding methods (where production cash is often borrowed and repaid after the release of the product and subsequent earnings). We have yet to see how big budget projects will be affected by receiving up front financing with no need to repay loans (although it should be mentioned that a large production like the Veronica Mars movie could be budgeted at much higher than $4-5 million, depending on the discretion of producer Warner Bros.). With Veronica Mars, people who contribute more than $35 receive a digital copy of the movie, and therefore will likely not pay to purchase it after the film is completed. Since they have a copy of the movie at the time of its release, it is also questionable whether some of them will skip the theatrical release and just watch their own copy, potentially cutting into future profits.

The concept of grassroots fundraising is by no means new. In my own area of study, independent LGBT films and filmmaking, I know of numerous instances where filmmakers raised money from friends, family, and others who were dedicated to seeing alternative images than those offered in Hollywood films. Nicole Conn, for instance, raised money for her 1992 film Claire of the Moon by finding lesbian backers who were interested in creating a film that was made by and for lesbians. The lack of lesbian images in film at the time inspired people to give money and create their own images. Conn is an interesting example in this context because she funded her most recent film, A Perfect Ending, in part through a Kickstarter campaign. Using the same foundation, grassroots financing from a fan base dedicated to creating more lesbian images in film, Conn has updated her methods to make the most of emerging technological opportunities.

This idea of user supported media extends beyond Kickstarter and other particular fundraising practices. Emerging digital distribution models can offer another area of direct audience support and participation. Again pulling from my own area of study, niche marketing sites such as BuskFilms offer audiences around the world the chance to support filmmakers more directly. This site offers a large selection of lesbian films (and is expanding into the full range of LGBT films) available for streaming rentals. Unlike larger distribution companies that have high overhead costs, BuskFilms is able to give a larger percentage of rental fees directly back to filmmakers who can then re-invest the money in future production projects. Similar to the process of grassroots fundraising, this model of distribution allows for greater audience participation in supporting filmmaking projects.

User supported distribution models are not limited to film. To give another example, this time outside my area of study, the Cultural Capital project (or CultCap) focuses on resolving the difference between the music industry and cultural music consumption by creating an online, non-profit patronage system and social network that uses an adaptive “algorithm to allocate equitable compensation via micropayment.” By eliminating middlemen and gatekeepers, the site would in theory fund musicians through fan engagement. Although the site is in a theoretical rather than functional state at the moment, the drive behind the site’s linking of fans/consumers with artists/creators of content reflects the same impulse of Kickstarter and Buskfilms.

Taken together, these examples suggest both a desire for users to play a more direct role in production of media projects that they feel passionately about and the potential that technological advancements and internet connectivity can offer the industry. I do not mean to imply that utopian ideals of directly user-funded and supported content will imminently wipe out established modes of production, although the success of the Veronica Mars Kickstarter might tempt studios to engage with “pre-selling” future projects. People invest in media production every time they pay for media (whether through buying a movie ticket, downloading a song through iTunes, paying for a cable subscription, etc). However, the concept of putting in this money before or during production, or paying media makers more directly, carries significantly different connotations. While some have speculated on the effects Kickstarter might have on the future of filmmaking, only time will tell how these shifting models of funding and distribution will affect established modes of media production.

1) Over 6 years after their last console release, Sony announced their latest gaming console, the PlayStation 4. While they did not reveal what it would look like, they did detail its functioning, new controller, hardware specs, and user interface. The system will include iOS and android apps to enhance the gaming experience.

2) The Academy Awards, or rather the Oscars, took place on February 24th. Six of the films nominated for Best Picture had earned over $100 million at the box office, making it the most commercially successful group of nominees to date. In the documentary short category, Inocente became the first Kickstarter-funded film to win an Oscar. The big news of the night became Seth MacFarlane’s hosting, which elicited a lot of criticism and sparked discussions about Hollywood’s potential sexism and racism. The Academy stood behind MacFarlane’s performance, and in fact this year’s Oscar ceremony showed increased viewership, especially in key younger audiences (which had been a concern for the producers). MacFarlane was not the only one in trouble on Oscar night, as The Onion faced an intense reaction towards a tweet, for which they offered a rare apology (And for anyone who is wondering how Ted came to life at the Oscars, here’s how!). The Independent Spirit Awards, which honor independent films, also took place last weekend.  Silver Linings Playbook came away the big winner, irking some people because the film’s $21-million budget technically put it outside of the classification for “indie film.”

3) Although they won an Oscar for visual effects for their work on Life of Pi, Rhythm & Hues filed for bankruptcy last week. They were cut off from discussing the plight of the industry in their acceptance speech, which upset many visual effects workers. Visual effects artists are protesting the layoffs and bankruptcies their industry is facing using any outlet they can, including social media and open letters (including a second one to Ang Lee).

4) New copyright alert system is launched by the film, TV, and music industries. The warning system gives people six strikes before they begin enforcing consequences. Sony has also developed a patent that would be able to distinguish between piracy activities and legal downloads. Internationally, France is also looking at increasing their (already very strict) anti-piracy laws. Thinking of piracy, how much does “free” music actually cost to artists involved?

5) For the first time in 12 years, music sales grow a small but symbolically important amount. In other music news, Billboard is beginning to include YouTube plays of a song in their formulation of their “Hot 100 List.” This change will allow YouTube hits like “Harlem Shake” to boost their stats. Most of YouTube’s top channels are music-based, suggesting the importance of this connection. Google is considering getting into the streaming music business. Pandora has put a limit on free listening, citing increased royalty fees as the reason, and Spotify is meeting with the record industry to ask for price breaks on royalties.

6) The 2013 box office totals are off to a slow start, 13% behind last year, and Jack the Giant Slayer opened to a disappointing $20-30 million. After taking a big loss on Rise of the Guardians, DreamWorks is forced to lay off 350 employees. The news is not all bad though, as Oz the Great and Powerful debuted with $75 million and The Hobbit closes in on $1 billion worldwide. In other movie news, Hollywood plans to cut back on sex and violence? And Regal Entertainment gets even bigger by buying Hollywood theaters.

7) In the publishing world, New York Times plans to sell Boston Globe. Variety announced they are making big changes–dropping their daily print editions, eliminating their paywall, and adding three new editors in chief.  Tim O’Brien, The Huffington Post‘s executive editor, has decided to leave.  Reader’s Digest files for Chapter 11 bankruptcy. And are digital book signings the way of the future?

8) Numerous companies are reporting hackers entering their systems, including Twitter, Tumblr, Pinterest, NBC.com, Apple, Microsoft, and Facebook (no user data was taken; but if it is compromised in the future, how would Facebook recover?).

9) In TV news, it’s pilot season! ABC is developing a miniseries How to Survive a Plague, based on the Academy Award-nominated documentary about the continuing AIDS crisis. A&E hit a record number of viewers for their reality series Duck Dynasty. Nielsen ratings are changing to reflect the new ways that people access television. Kaley Cuoco of CBS’s The Big Bang Theory tweets positively about Dish Network’s Hopper, though CBS is in the process of suing them. AMC fought with Dish about licensing fees, and AMC’s fourth quarter profits took a hit as a result. The FCC is being pushed to modify the current standards of TV product disclosure to create more transparency with regard to show sponsorship. Cablevision, with the support of Time Warner Cable and DirecTV, filed an antitrust lawsuit against Viacom, claiming that they practice illegal block booking of stations (an accusation that Viacom leveled at John Malone 20 years ago).  The lawsuit could lead to people being able to more selectively sign up for channels, only paying for the ones they want.

10) In other miscellaneous news: Clive Davis comes out as bisexual. Girls Gone Wild files for bankruptcy. And future technologies–the iWatch? Transparent Smartphones? A computer that never crashes? Or what about touchscreen T-shirts?

1) Not as many people tuned into the Super Bowl on February 3rd as the previous 2 years, but it still managed to be the 3rd most watched game despite the 34 minute blackout during the game, which some brands used to their advantage.  The game also failed to boost ratings for the CBS Monday lineup. Many viewed the Super Bowl ads as disappointing and not reflexive of the interests of younger generations.  However, the game set a record for the most social media interactions connected to an event.  Some campaigns used social media prior to the game, for example Budweiser’s campaign to get people to offer suggestions and vote on the name of the baby Clydesdale used in their ad this year (They chose Hope).  The FCC decided to ignore Joe Flacco’s swearing at the end of the game, which has sparked very little backlash.

2) Netflix released all 13 episodes of House of Cards, its original series, on Feb. 1st.  While Netflix execs have been reluctant to release viewer statistics, general buzz suggests that the show’s premiere was a success, and it has been generating a lot of talk about what this means for both Netflix and the future of TV viewing.  Netflix plans to continue creating original programming, both another season of House of Cards and a children’s show, Turbo, in conjunction with DreamWorks.  Netflix was also facing a court case from shareholders who felt that the company misled them by inflating its share price, but the case was thrown out.

3) Network and cable TV have been dealing with their own issues, such as a big ratings slump for NBC that might cause some mid-season shifts in the schedule.  Comcast purchased the remaining shares of NBC from its former parent company GE.  As a side note, in an unusual bid for Oscar attention, Warner Brothers bought 30 minutes of prime time on NBC to promote Argo.   CBS tried to use online extras to generate excitement for the Grammy awards.  CBS also acquired a share in AXS TV in exchange for programming and marketing.  Time Warner is increasing original programming on TNT and TBS, and FX continues to use dark, risque material to draw fans and create a niche for themselves.

4)  xbox remains the top selling gaming system for the 25th month in a row, selling over 281 thousand units in January.  But could it be that in the future Apple will overtake the gaming system market?

5) Some news on film distribution around the globe: European TV stations are not acquiring as many art cinema films, leaving even successful distributors in a difficult situation when trying to find an audience for these films.  In Japan, hulu.jp is experimenting with allowing a limited number of people to stream a film, Sougen no isu, for free before it is released theatrically.

6) Barnes and Noble had another disappointing quarter.  Book sales are not in trouble everywhere though, India’s publishing industry is showing steady growth despite the decrease in global markets.  Amazon is attempting to break into the ebook market in China, but is facing several obstacles including the lack of available kindles for purchase and piracy issues.  Apple’s ibookstore highlights self-published books, perhaps another sign of the changing print industry landscape.

7) The house subcommittee met to talk about preserving global internet freedom from government control.  On other internet news, AOL had surprisingly good 4th quarter revenues.  They have also re-branded their advertising.com group as AOL Networks, to emphasize the link with its parent company.

8) The Grammy awards took place on February 10th, setting the second largest record for social media interactions.  The awards led to an increase in album sales from the previous week, although the numbers are down from where they were at this time last year.  In other music news, Lady Gaga’s tour has been cancelled due to a hip injury, and approximately 200 thousand tickets will have to be refunded.

9) Dell Inc. goes private in a $24 billion leveraged buyout, in an attempt to rework the company to provide a wide range of products for corporations.  In other buyout news, John Malone’s Liberty Global acquired UK’s Virgin Media, putting him in position to compete in the UK’s pay TV market.

10) Some fun things to end with: Remember tamagotchi keychain pets?  Well now there’s an app for that.  Currently only available for Android devices, it should be available for Apple in the near future.  For those fans of the Alamo Draft House in Austin, they announced plans to open a second location in Kalamazoo, Michigan.  And this week’s newest internet sensation… Doing the Harlem Shake (and thinking about how to get the most out of it)