Sunday, June 28, 2009

Buy "Shares" of Films on Hollywood Stock Exchange

Hollywood movies cost a lot of money to make, so most are funded by big studios. Obedience to the bottom line has often caused these studios to corrupt the original vision of film-makers in order to conform to profitable "formulas." Indie (independent) movies, by definition, are not funded by these large studios' dollars, so they can remain loyal to the original vision; often enabling beautiful, cinematic works that push the envelope of thought and art. Limited budgets, however, apply their own constraints and pressures.

To empower a new generation of inspired film-makers and artists, I propose a Wallstreet-type market where ownership shares of movies can be bought and sold like shares of stock. The IPO (initial public offering) would raise money for the production of a film. In return, investors would be paid dividends: their share of box office revenues, DVD royalties, etc. Share prices would be guided by supply and demand, projected revenues and costs, analyst opinions, statistical analysis of other works by the writers, directors, actors, etc.

The marketplace could be based in Hollywood with an online trading component, making it possible for diverse investors and film enthusiasts from all over the world to fund new works.



CATEGORY: Entertainment / Financial
IDEATION: July 2, 2006.

10 comments:

  1. As an added bonus to this scheme...when Hollywood complains about all the pirating that is happening and loss of revenue that follows, the general investing public now has skin in the game and therefore could help fight with the anti-pirating groups. You could get Lars to be your first investor. jm

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  2. Oh yeah - good call, Jeff! We'll make movie-making a participatory process with ownership, and people will definitely show more respect for the copyright laws.

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  3. or they will feel entitled to pirate the movie since they already own it.

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  4. There was something like this that existed for purely entertainment purposes, much like fantasy football. I couldn't find any linkage, so you'll just have to trust me. :)

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  5. interesting jennifer - were people betting on box office revenues of existing movies or something?

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  6. I actually came on here to see if there were any responses to a different comment of mine... which apparently didn't publish! Just know my CEO would be all over that satellite advertising idea.

    Anyhoo, the Fantasy Movie Stock Market was through IMDB and the idea was to invest in both movies AND actors. I think the game was to promote their new Popularity Ratings system. (If you visit the site and then any actor or movie, it will give you the percent up or down that page has seen in popularity - taking into account many factors.) ...Or else, the game just utilized the technology.

    You would in effect, receive higher value in your stock if, yes, the movie did well in the box office, DVD release, etc. I thought this was particularly cool, even though I didn't play the market as it cost $$, because you could invest in barely known actors or Indie films and see high return if you guessed correctly and they did well. I liked to think I was good at that and wanted to test my abilities! The end. Jen

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  7. that's cool jen! you shoulda thrown down some cash and weighed in on the upcoming stars and movies!
    ...and if your CEO is down with the rooftop advertising idea - tell him/her about it!
    booya.

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  8. Things like this are starting to happen: http://www.spannerfilms.net/crowd_funding

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  9. https://www.kickstarter.com/ and https://www.indiegogo.com/ probably fill this roll well now, although SEC rules are still evolving that will permit public investors to purchase equity rather than donating contributions for a return of an in-kind good or experience.

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