In today’s age, the thought of funding a TV project is outside of what appears on mainstream television. Recently, an equity crowdfunding campaign for The Chosen raised over $10 Million. The amount shatters crowdfunding records related to TV production including donation crowdfunding. Some other high profile campaigns such as Mystery Science Theatre raised over $5 Million on Kickstarter.
The TV series is from a company called VidAngel that allows parents to control their children’s viewing habits. Users of VidAngel can skip inappropriate scenes on streaming platforms such as Netflix and Prime Video.
The Chosen exemplifies how equity crowdfunding can fund projects outside of the norm of major metro media. In a previous article, we talked about the importance of social networks for legitimizing creative production. Producers are likely to succeed first in a small network often located in a specific geographic area.
Equity Crowdfunding allows for new market entrants to compete with geographic strongholds. Crowdfunding will likely continue to push decentralization of creative industries outside of the major metros.
Numerous groups note the Christian or family themes in mainstream movie releases. There is a large industry that seeks to supply creative, faith-based content.
New capital markets allow competitors to take on incumbents, whatever one’s cultural or religious affiliation and encourages healthy competition, Healthy competition is good for the industry.
However, there is a cultural divergence that could occur as media decentralizes, like the divergence caused by social media platforms as users become siloed in echo chambers.
Economic Benefits of Open Capital Markets
The benefits for national economies, in the specific case of creative industries, can be substantial as regions outside of major production hubs can now fund creators. As the economy increasingly automates unskilled labor, creative industries are an important employment respite and a tool to revitalize the cultures of economically displaced regions.
Currently, many regions cannot develop their own creative markets or economies due to the lack of funding in smaller regions. The top-down investment model leaves creative producers out unless they are located near the major hubs of production.