Kickstarter Helped Raise Nearly $100 Million In 2011... But There Are No New Business Models?

from the just-saying... dept

For years, we've been hearing how the new business models we talk about aren't really "big enough" or that they're just "exceptions" to the rule. Yet, every year we see more and more success stories involving those kinds of business models. Kickstarter, for example, has been quite successful building a platform that empowers exactly the kinds of business models we've described for nearly a decade -- and it has found tremendous success doing so. It just posted some stats for 2011, showing that just under $100 million was pledged into projects this year (with approximately $84 million going into projects that were actually funded).

Perhaps most interesting of all? The two areas of the entertainment industry where we repeatedly hear the loudest cries of "there are no new business models!" -- movies and music -- were the two largest areas on Kickstarter. An impressive $32,473,790.40 was pledged for films and video -- leading to 3,284 successful projects, involving 308,541 backers. For music, it was $19,801,685.21 pledged for 3,653 successful projects, involving 260,178 backers. The 2011 numbers roughly tripled the 2010 numbers, so this kind of thing is clearly growing quickly. And, remember, Kickstarter is just one company in this space, which has multiple other companies -- such as IndieGogo and PledgeMusic -- offering similar platforms.

And yet, we're told that there's no way to make money and that fans just want stuff for free? Perhaps it's time to rethink some of those assumptions...

But the really key thing here is exactly what we've said all along: new business models develop. They always do. And part of allowing those new business models to develop is letting new startups, services, platforms and tools develop to meet the needs of the market. Kickstarter clearly meets a need. Things like SOPA and PIPA make it more difficult to start such a company or build such a platform these days (which is why both Kickstarter and IndieGogo have come out strongly against these bills). Let these new services live, and watch new business models succeed (and with them, all sorts of artists and creators).

Filed Under: crowdfunding, economics, independent artists, new business models, opportunity
Companies: indiegogo, kickstarter

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  1. icon
    Violated (profile), 12 Jan 2012 @ 10:37am

    A New World

    Little makes me more happy than to see people getting active and reshaping the World while they create. To raise $100 million is very impressive considering that most Net citizens have yet to hear about them.

    So they funded 3284 film and video projects which works out as $9888.49 average per project. Let us hope they can pony up some serious funding for very serious people with very awesome projects.

    From what I can see the market still has a long way to reshape and to get the right people doing the right jobs to benefit the whole community.

    One point of happiness I enjoy these days is Imgur. This website clearly shows a free sharing culture. What is most interesting is that when people upload a photo others with impressive photo editing skills can edit these to make the photos more enjoyable for the benefit of the whole community.

    This reflects key attributes of the new market where people join the community and offer their skills simply because they want to where them being part of that community provides its own rewards.

    My only concern is that it is a long, long, long way to go before the Internet can turn out something like Avatar. Let us keep in mind one fact though when this $9888.49 average is not far below the budget for the first Paranormal Activity movie.

    So what the Internet most needs now is a creative genius to produce a movie of like-standard that uses the Internet to become viral. Then the World and Congress would sit up and take notice.

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