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Crowdfunding and Independent Screen Content Production in Australia

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Crowdfunding and Independent Screen Content Production in Australia Crowdfunding and Independent Screen Content Production in Australia A direct economic relationship between producer and audience Rebecca Laycock B.A.Com. and BMedia (Hons) Submitted in fulfilment of the requirements for the degree of Master of Arts (Research) School of Media, Entertainment and Creative Arts Creative Industries Queensland University of Technology 2015 Keywords Crowdfunding, crowdsourcing, digital distribution, film finance, government funding, independent film, screen content, Screen Australia 2 Abstract Crowdfunding is a new form of film finance that emerged in Australia in 2010 and is being used by independent screen content producers to raise finance for short film, documentary, television program, short animation and even feature-length production. This trend is seeing Australian independent content producers bypass traditional sources of finance by working with a model for finance that is outside, or perhaps alongside, traditional forms of film financing in Australia. In some cases, filmmakers are no longer solely waiting for government funding to green-light a project, they are initiating funds prior, during and after production to guarantee their film is produced. Independent screen content producers are also establishing a direct economic relationship between producer and audience and in so doing are simultaneously establishing a niche audience for their content. Crowdfunding is to an extent becoming a necessity, especially within a decreased national funding arts environment. However, to date there has been limited in-depth academic analysis of crowdfunding as a source of production finance for independent Australian screen content production, particularly in terms of government action, industry trends, and what areas of the broader screen industry are receiving crowdfunding. Moreover, as a fledgling industry practice, the efficacy, challenges and pitfalls of crowdfunding and the empirics of how Australian filmmakers engage with crowdfunding and the content produced is largely undocumented. This project, therefore, examines the significance of crowdfunding for Australian filmmakers and provides an empirical basis to current claims about the role of crowdfunding in the film production sector. This study has found that crowdfunding is a small but growing source of supplementary finance which is opening up new possibilities for Australian independent screen content producers. For the foreseeable future, crowdfunding is unlikely to replace other models of finance obtained through Australian screen agencies and private investment, and a crowdfunding campaign is likely to become part of a mixed model of finance in a bid to either initiate finance or to ‘top-up’ funds during production or in post-production. Commentators and interviewees for this study anticipate that crowdfunding will at some point wholly support an Australian production with a more substantive budget, however, at this point in time, it is clear that the Australian film industry is some time away from funding an entire feature film via crowdfunding. This project also highlights the discussion within 3 Australian film policy circles that is opening the way for crowdfunding to potentially become a larger and more formalised component of current and emerging policy initiatives. 4 Table of Contents Keywords ...................................................................................................................... 2 Abstract ......................................................................................................................... 3 Table of Contents .......................................................................................................... 5 List of Figures ............................................................................................................... 7 List of Tables ................................................................................................................ 8 Statement of Original Authorship ................................................................................. 9 Acknowledgements ..................................................................................................... 10 Chapter 1: Introduction ......................................................................................... 12 1.1 Introduction to Thesis and Research ................................................................. 12 1.2 Research Gap and Methodology ....................................................................... 14 1.2.1 Research questions ................................................................................... 14 1.2.2 Research significance ............................................................................... 14 1.2.3 Methodology ............................................................................................ 15 1.3 Structure of the Thesis ....................................................................................... 19 Chapter 2: Literature Review ................................................................................ 21 2.1 Screen Production in Transition ........................................................................ 21 2.2 Participatory Culture and Web 2.0 .................................................................... 25 2.3 Crowdfunding .................................................................................................... 28 2.3.1 ‘The Crowd’ and its role in history .......................................................... 28 2.3.2 Evolution of crowdfunding ...................................................................... 29 2.3.3 Precursors to and emergence of crowdfunding ........................................ 31 2.3.4 Crowdfunding process ............................................................................. 32 2.3.5 Types of crowdfunding ............................................................................ 34 2.4 International Case Studies ................................................................................. 35 2.4.1 Inocente (short documentary) .................................................................. 35 2.4.2 Veronica Mars (feature film) ................................................................... 37 2.5 Conclusion ......................................................................................................... 39 Chapter 3: The Australian Film Industry and Government Policy ................... 40 3.1 Introduction to Australian Film ......................................................................... 40 3.1.1 Australian film policy .............................................................................. 40 3.1.2 Revival of the Australian feature film industry and the role of public funding .......................................................................................... 42 3.1.3 Dualism between culture and industry: Industry 1 and Industry 2 .......... 44 3.1.4 Australian film and contemporary film funding ...................................... 48 3.1.5 The producer offset .................................................................................. 50 3.1.6 Screen Australia Drama Report 2013/2014 Key Industry Data ............... 50 3.2 Financial Changes to Government Support ....................................................... 51 3.3 Crowdfunding: A growing phenomenon in Australia ....................................... 53 5 3.3.1 Pioneering success story 1: The Tunnel ................................................... 56 3.3.2 Pioneering Success Story 2: Iron Sky ...................................................... 57 3.3.3 The consultant and crowdfunding ............................................................ 57 3.4 Conclusion ......................................................................................................... 59 Chapter 4: Australian Independent Screen Content Producers and Crowdfunding ...................................................................................... 60 4.1 Crowdfunding and Australian Screen Content .................................................. 60 4.2 Genres and Genealogies of Filmmakers behind the Projects ............................ 64 4.3 Independent Path to Production: Wyrmwood: Road of the Dead ...................... 67 4.4 Finance Models and Approaches to Crowdfunding .......................................... 69 4.5 The Babadook and Rewards .............................................................................. 74 4.6 Crowdfunding and Business Models ................................................................. 77 4.7 Conclusion ......................................................................................................... 80 Chapter 5: Crowdfunding and Public Support .................................................... 82 5.1 Introduction ....................................................................................................... 82 5.2 Crowdfunding and Government Funding .......................................................... 83 5.3 Government Finance and Innovative Online Content ....................................... 85 5.4 Crowdfunding and Government ‘Top-Up’ Funding: Wyrmwood: Road of the Dead and Canopy ........................................................................................ 86 5.5 ScreenWest and the 3 to 1 Crowdfunding Initiatives ........................................ 90 5.6 Example of Unsuccessful Crowdfunding: Merlyn Moon’s Punjab To Perth ... 91
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