David Bloom is a Deadline contributor.
Crowdfunding websites such as Kickstarter and Indiegogo so far have been only moderately useful for most independent filmmakers trying to finance their next movie, but that could change significantly under the federal JOBS Act passed earlier this year, said members of a panel at the Digital Hollywood conference, which wraps today in Marina del Rey.
Under previous rules, crowdsourcing sites couldn’t offer equity stakes to contributors. Instead they receive modest tokens of appreciation such as T-shirts or tickets to screenings — in other words, they get nothing more than the satisfaction of helping a movie get started. The new law will allow intermediaries such as crowdsourcing sites to sell members modest equity stakes in films, up to $10,000 or 10% of each user’s income. The project must set a fundraising goal and if it doesn’t raise at least 60% of that, no money would change hands. “There are many more opportunities to come and we’re just seeing the start of this,” said Keri Putnam, executive director of the Sundance Institute, which has raised $3 million on behalf of 85 films through Kickstarter. The SEC is currently establishing regulations under the new law. (more…)