Kickstarter already funded over $1m entertainment projects. So did the Louis CK experiment. These are far and far away from the mainstream popularity that buying movie tickets have. Don't you think that it's reasonable that web organized crowd-funding could finance even big blockbuster movies as these websites get more popular?
Imagine if popular celebrity directors with huge cult-followers like Tarantino would post a project on Kickstarter, then properly advertise it. I'd imagine a huge movie could be funded that way.
Kinda true, although lots of films make more money through merchandising than the box office.
But even in that situation, why can't movies be funded by crowdsourcing? I'm sure there's lots of fans of LoTR who'd be happy to crwodfund The Hobbit, for example.
Crowdfunding can be a viable option, but paying large sums of money before any work is done makes it tempting to abscond with most of the money and produce either an inferior or nonexistent product. How would you prevent this from happening on a regular basis? Would your solution make it too risky to attempt large projects out of fear of them not being deemed "good enough"?
Not if you keep trademarks and have trademarks on the relevant characters, objects, etc.
In other words, you're free to do anything you want with the Harry Potter movies, so long as you remove all instances of the name "Harry Potter" and all likenesses of Daniel Radcliffe wearing a robe?
Mind you, the trademark owner can authorize things. And I think there is even some analog of fair use for trademarks, but you should consult with a lawyer if you ever have more than an academic interest in such things.
Bad things are done in the name of copyrights (and patent protection). That doesn't invalidate the whole concept, it just means reform may be needed.
Besides, it's only a knock-off if you were exposed to the original.
This would let the market actually sort out what is naturally viable.
Because prefunding is effectively a requirement, there's no way for a creator to take a gamble, produce something with their own resources, and then try to make it up later. This is essentially the process by which all novelists get started now. Are you sure that prefunding is a suitable replacement?
If you can't raise sufficient funding, frankly, that's a your problem. There are a lot of people (myself and cofounders included) who prefund by working some job (of varying degrees of satisfaction) and diverting the funds towards development of their own creative enterprises.
In the absence of patrons, yeah, we fund ourselves, and one day it'll pay off--or it won't. That's life.
Novelists are great and all, but it seems obvious that if you cannot write something quickly enough on a budget, or in your freetime, and it isn't good enough to get picked up, well, sorry. The system should be in place to let you fail fast and figure out what to do next.
Prefunding isn't going to get us flying cars, just faster horses.