In this week lecture, I learn about Crowd-funding and it's my first time i encounter this kind of topic. In general, crowd-funding is a type of service of an open call that let people make projects or seek financial resources in the form of donation or rewards form and/or voting rights in order to support the plan for specific reasons. Crowd-funding essentially through the internet so it is like customers of specific product category (music, bands, technology, dance, movies, etc) will joined a project that match their interest and pay/give money to this project. In return, the companies or people who start this project will give the donators a reward. Crowd-funding has two types of reward based platform which are Kickstarter and Indiegogo. Kickstarter is the most famous and common crowd-fundung platform for companies to get financial needs or funds of a project.
The recent examples of kickstarter project are the Veronica Mars Movie project. This project has reached around $5,700,000 millions and it's the all time highest funded project in FILM category with the most project backers in any project in Kickstarter history. The target goal was $2 million. Veronica Mars movie is showing on 14 March 2014. The backers who support or funds this film will get rewards in various forms such as t-shirt, dvds, posters, premiere screening, a role as the supporting characters, shooting scripts and watch online in Flixster or Ultraviolet. This movie was a tv show that only receive 3 millions viewers. The tv show ended in 2007 because the provider cancel it and so Veronica Mars stuck being a college girl. In this movie, Kristen Bell reprise her role again as Veronica and now Veronica is not a school girl anymore but finding works or you can say the movie is about the future life of Veronica.
With the help of Kickstarter, this project was able to be recognized and share it to fan movie. But truly what makes the movie reached $5 million and became the highest fund project was the customers or the loyal fans of this series. The important aspect of crowd-funding is "word mouth marketing" which mean that people (fans in this case) spread the news and share it to other people with similar interest. They can do it through social media such as Facebook, Twitter, Tumblr and many forms.
For those backers who have problem watching online with Flixster or Ultraviolet, Warner Bros (WB) will fully refund the price charged on another platform service or $10 refund of their Kickstarter pledge for digital download as their reward.
This is my first time encountering topic of crowd-funding and getting money using online donations. What i know so far to get money is in the form of loans or equity. There is advantages and disadvantages of doing online funds, issue equity and loans. Crowd-funding is one of great ways to finance money and reach project goals even though at times it can be risky or forfeit the bid. It brings many good opportunities such as the Veronica Mars project because getting money from studios or loans from bank will be expensive rather than getting funds online from widespread of fans. Also one of the best way to word mouth-mouth to fans in same category (music) or specific category (Harry Potter fans) in different part of the earth.
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