It reminds me of one of freddiew's Behind the Scenes video, in which him and Jon Favreau were talking how it's so nice when someone provides the toys/funds, but at the end of the day it's the actual artists who call the shot. Why not apply the same kind of contracts movie studios make with directors and actors (base amount, and maybe some % of revenue), in reverse, so the artistic driving force between the project negotiates the same amount of deals with the financier. It would be like a VC deal, where some people/companies would have preferential treatment at getting the money back and all that.
Why do we need to?
I hear this sentiment from gamers sometimes, where passive (story told to you) entertainment is almost used in a derogatory way, as if the fact that the audience is not actively participating makes it worse. It seems to me a kneejerk reaction to years of everyone treating gaming as an illegitimate artform.
Why do we need to change this behavior? What is wrong with consuming stories about other people?
There's some great work going on there - the big difficulty isn't the producing or financing, though. I'm part of the Seattle webseries community, and the big difficulty I keep seeing is - how do you get your series in front of people?
So in a sense - I think marketing is the killer if you're going to compete head-to-head with Hollywood.
You don't need to out-market Hollywood (though achieving parity may be part of the equation). You need to create a more efficient production cycle, from artist to costumer.
I'm thinking lean start-up. How can we reduce cycle time between artist conception of an entertainment pitch and consumers evaluating it?
Lean Start-up says reducing this cycle time should make the system fitter.
A simple answer would be 'social proof'. Mashable provides a TopTen list of the most watched shows. That's a good start but the site is too distracting for Average Joe, in my opinion.
Also, web series are too short for true passive entertainment. I guess what your communities would need is a sort of Google Adsense, so you could plug-in advertising to be able to produce longer streams.
That would at least provide you with some money. When one show hits it big, that'll make news, and more people would start looking for shows like that. More eyeballs, more advertising, better chances of another hit, more news, and there you go.